This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nvidia Games the System With Graphics Driving Growth and Margins

Both these GPUs will help Nvidia regain lost market share from Advanced Micro Devices' (AMD) new R7 and R9 series Hawaii GPUs, which were added last year. The R7 and R9 series are based on AMD's graphics core next architecture and apply a top-to-bottom approach, with R9 targeting performance gamers and R7 targeting lower-budget value and mainstream customers. These new GPUs has helped AMD gain a presence in the PC graphics market as rival Nvidia was at that time still updating to Maxwell architecture. 

Nvidia had primary targeted its new Maxwell GPUs against AMD's R7 260X, but the recent introduction of AMD's R7 265 2GB graphics card at $149 and a reduction in price of R7 260X has heated up the competition. In comparison, NVIDIA GeForce GTX 750 Ti provides best-in-class performance along with lower power consumption than AMD Radeon R7 260X.

Nvidia's has just released its first series of GPUs on Maxwell architecture, and more products based on this graphics architecture can be expected soon. Despite the PC market's downward trend, PC gaming is expected to grow at a CAGR of 14.3% from 2012 to 2015.

In addition, other segments of the graphics market like high-performance computing (Tesla), workstation (Quadro), and newly introduced cloud gaming service, GRID, are also major growth drivers. Nvidia's Tesla GPUs have been dominant in the HPC with the company showcasing the world fastest graphics accelerator for supercomputing, the Tesla K40.

The company reported 20% year-over-year growth in sales of Tesla GPUs in the fourth quarter of fiscal-year 2014. Along with its partner and market leader in high-performance computing hardware, IBM , Nvidia's prospects in HPC look strong.

Apart from Tesla, Nvidia's GRID trials continue to grow at a robust rate of 46% quarter over quarter in the fourth quarter of fiscal-year 2014, and will start being reflected in the company's income statement soon.


At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs