Nvidia shares rise as chipmaker unveils new product for filmmakers
Nvidia shares ended higher in the US Monday, as the tech firm unveiled a new chip configuration aimed at filmmakers and graphics professionals. In addition, Cowen analysts reiterated their ‘outperform’ rating on the chipmaker.
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Nvidia shares ended the US Monday trading session 0.52% higher at $256.12. The stock is also higher in out-of-hours activity.
Nvidia unveils new chip technology
Nvidia shared its latest chip upgrade Monday. The new version of its chips are called ‘Turing’ after the renowned British code breaker and it contains new features that are expected to help support the growth of the firm’s tech among movie makers and graphics specialists.
“Turing is NVIDIA’s most important innovation in computer graphics in more than a decade,” said Jensen Huang, founder and CEO of NVIDIA.
“Hybrid rendering will change the industry, opening up amazing possibilities that enhance our lives with more beautiful designs, richer entertainment and more interactive experiences. The arrival of real-time ray tracing is the Holy Grail of our industry,” he said.
The real-time ray tracing feature is considered significant because existing technology means the process of simulating bouncing light rays is time consuming. Nvidia is likely anticipating filmmakers and graphic designers will be willing to pay a premium for the real-time availability of this procedure which should help reduce editing time.
Nvidia among analyst’s ‘top picks’
Meanwhile, Cowen analysts have reiterated their ‘outperform’ rating on the Nvidia stock, citing the potential of its latest ‘Turing’ chips.
“We see a favourable setup as we expect well-documented choppiness in the gaming channel to be offset by continued robust data centre demand and backlog. We see little risk to near-term numbers from crypto,” analyst Matthew Ramsay said in client note.
“We would recommend investors not let any choppiness in a clearly transitional period distract from what we expect to be a powerful upgrade cycle when Turing launches this Fall,” he added.
That confidence in the stock comes ahead of the tech firm’s latest earnings report, due Thursday. Ramsay added that he expects Nvidia earnings to beat expectations.