Thursday, September 20th 2018
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NVIDIA Stock Falls 2.1% After Turing GPU Reviews Fail to Impress Morgan Stanley
NVIDIA's embargo on their Turing-based RTX 2080 and RTX 2080 Ti ended Wednesday, September 19 and it appears that enthusiasts were not the only ones left wanting more from these graphics cards. In particular, Morgan Stanley analyst Joseph Moore shared a note today (Thursday, September 20) with company clients saying "As review embargos broke for the new gaming products, performance improvements in older games is not the leap we had initially hoped for. Performance boost on older games that do not incorporate advanced features is somewhat below our initial expectations, and review recommendations are mixed given higher price points." The NVIDIA Corporation share value on the NASDAQ exchange had closed at $271.98 (USD) Wednesday and immediately tumbled down to a low of $264.10 opening today before recovering to close at $266.28, down 2.1% over the previous closure.
The Morgan Stanley report further mentioned that "We are surprised that the 2080 is only slightly better than the 1080ti, which has been available for over a year and is slightly less expensive. With higher clock speeds, higher core count, and 40% higher memory bandwidth, we had expected a bigger boost." Accordingly, the market analyst expects a slower adoption of these new GPUs as well as no expectation of "much upside" from NVIDIA's gaming business unit for the next two quarters. Despite all this, Morgan Stanley remains bullish on NVIDIA and expects a $273 price point in the long term.
Source:
CNBC
The Morgan Stanley report further mentioned that "We are surprised that the 2080 is only slightly better than the 1080ti, which has been available for over a year and is slightly less expensive. With higher clock speeds, higher core count, and 40% higher memory bandwidth, we had expected a bigger boost." Accordingly, the market analyst expects a slower adoption of these new GPUs as well as no expectation of "much upside" from NVIDIA's gaming business unit for the next two quarters. Despite all this, Morgan Stanley remains bullish on NVIDIA and expects a $273 price point in the long term.
96 Comments on NVIDIA Stock Falls 2.1% After Turing GPU Reviews Fail to Impress Morgan Stanley
hello AMD??
Remember that market price adjustments can only ever be the result of novel information. This is why prices can sometimes go up after bad news - the market expected worse.
It's not that the 2000 series is "bad", it's imply bad for the pricing they're asking - performance is just completely unacceptable for the price premium they're asking. It's like releasing a toilet that flushes just a little better than the previous model, but marking up the price 70%. Just utterly ridiculous and I'm glad major businesses are taking notice and acting accordingly. Hope Turing sells like total $hit and forces a price drop into "acceptable" ranges.
But seriously, given the dissapointing release, I don't see it as that huge.
If it keeps dropping pass 5% it might be concerning.
So, they will probably have a limited availability because the dies are so large and yields will be poor but they get to completely test the arch and RTX AND make a large profit doing it because they priced it so high. Meanwhile, everyone that doesn't want terrible value to go with high performance will buy all the stock of the previous generation greater than MSRP. Following that, 10n, or 7n, whatever they end up using will be ready and they can release this same product on the node shrink and gain even more performance without having to develop another arch. Plus, the enhancements they will get by switching nodes and some enhancements they learn from this beta test will allow the RTX tech to be useful when 3000 series can go.
They will get to sell out all their old stock without having to drop prices, sell all the 2000 series at insane prices, and beta test RTX all in one go.
They have ZERO reason to lower prices right now.
Why would any company want to make less money when they can make more?
The argument now is that 'but it was never native DX12 so ofc it doesn't get better'... sure thing. Let's stick with that for the coming year or two as an excuse :)
Meanwhile, even DX9 games still exist and they are no worse for it either. API is irrelevant. Only content and actual performance matters. And in that, RTX offers little to nothing new. Correct, its brilliant for Nvidia, and for consumers its practically standing still for 3-4 years. For longer term, I do agree with you, I guess we'll take anything for granted though because what other options do we have? :D
I see two problems with nVidia's approach:
1 - RTX seems to be only for top end cards which accounts for quite a minority of the whole cards ecosystem, so i seriously doubt game developers will spend so much resources for the benefit of the very few
2 - by pricing the cards that have RTX so high, it only exacerbates the problem of #1 because it drives away potential buyers. Most people will skip 2080 because it's performance is mostly tied with 1080 Ti while the 2080 is quite a bit more expensive (assuming they already have a 1080 Ti) and the 2080 Ti is far too pricey