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Nvidia Lovelace gaming card launches in ‘really good place’ as models start at $899

Nvidia Corp. Well positioned to launch its next generation of gaming cards amid a consumer slump, the chipmaker told Wall Street on Tuesday as it announced its next-generation chip architecture. after a year of preparing for it.

During Nvidia’s keynote
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GPU Technology Conference Tuesday, CEO Jensen Huang unveiled the company’s next-generation “Ada Lovelace” architecture gaming chip by introducing the flagship RTX 4090 at retail. recommendation is $1,599. The new gaming chip, which is said to have up to 4x faster performance than its previous generation RTX 3090 Ti, will launch on October 12.

New architecture named after 19th century English mathematician Ada Lovelaceoften regarded as the world’s first computer programmer for her work on Charles Babbage’s Theoretical Analytical Engine.

After the keynote, Huang told analysts that while the late-game markets are soft, they’re not so soft that Nvidia won’t be able to sell through the excess inventory they have in the channel.

“We’re in a really good place at the moment,” Huang told analysts. “We have implemented specific marketing and action programs to specifically reduce the segment that Ada was initially entering.”

Huang reminded analysts that Lovelace has been delayed so the company has enough time to execute marketing programs and clean up inventory channels, and a top-down ramp to serve gamers who want to. get the latest chip first.

In preparation for that, the company “used two-quarters of the drugs that were really harsh,” Huang told analysts, referring to several profit warnings for the year as the company beat projections. Report the revenue and get one $1.22 billion inventory fee before launch.

Huang also introduced the RTX 4080 gaming card, which starts at $899, which is meant to run up to 4x faster than the RTX 3080 Ti, along with a 16GB version starting at $1,199.

Huang said the RTX-3000 series will also remain available to entry-level gamers with the RTX 3060 starting at $329.

Read: Nvidia sales forecast down by about $1 billion, stocks fall

Ampere’s Lovelace Architecture, announced about two months after the COVID-19 pandemic amid strong demand for gaming cards, sent the stock up 122% in 2020, compared to a 51% gain in the Sales Index. led PHLX
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Now, Nvidia is launching an environment when gaming demand is falling in the era of consumer technology declineand the stock is down 55% so far, compared with a 35% drop for the SOX index.

The company also launched its Lovelace GPU for designers and creators, the RTX 6000 workstation, which will begin shipping in the fourth quarter.

Read: Chip stocks could drop another 25% as ‘we’re entering the worst semiconductor downturn in a decade’, analyst says

The advanced Lovelace architecture is also needed to support Nvidia’s expansion to the Omniverse, its foray into the so-called metaverse, Huang said.

During the keynote, Huang also unveiled the Nvidia Omniverse Cloud, the company’s first Software-as-a-Service and Infrastructure as a Service product, to design, publish, operate, and experience metaverse app, the company said.

The service includes features like the “Omniverse Nucleus Cloud,” which gives designers and 3-D teams the ability to make changes and share scenes from nearly anywhere, Nvidia said.

Read: Nvidia’s ‘China Syndrome’: Are Stocks Bearish?

Initial customers of Omniverse Cloud include WPP advertising agency
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and Siemens
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Nvidia said.

With consumer demand faltering, Nvidia’s largest unit recently became the data center business with quarterly revenue contributing $3.81 billion, up 61 percent year-on-year, compared to the same period last year. with a 33% drop in game revenue to $2.04 billion from a year ago, according to the company’s most recent earnings report.

Nvidia stock last fell 2% in Tuesday trading, compared with a 1.7% drop for the S&P 500 index.
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