To kick off CES 2025, Nvidia (NVDA) announced new RTX 50 graphics gaming cards. The firm claimed that the more affordable model would perform as well as the previous generation cards. This frames-per-second comparison depended on frame generation, using artificial intelligence.
AI developers perform real-world measures, called rasterization.
Nvidia’s limited supply launch creates a tremendous opportunity for Advanced Micro Devices (AMD). AMD stock, which closed below $100 last week for the first time since late 2023, announced a next-generation GPU. The RX 9070 XT and RX 9070 will have AMD RDNA 4.
This will have 16GB of memory, up to double that offered by Nvidia (8GB to 12GB). The GPU will have advanced AI power and Raytracing accelerators. Most importantly, the price tag is $549 – $599.
Nvidia does not need to cut prices or increase supply. AMD is hardly a threat after the firm lost market share to Nvidia in the last year. It has a moat in most markets, thanks to the proprietary CUDA platform developed decades ago.
Intel (INTC) may grab the budget market share with the second-generation Battlemage GPU. The firm fixed bugs and incompatibilities that hurt the first-generation card.
Your Takeaway
AMD may outflank Nvidia on price. To gain market share, it needs to fix any driver bugs after the launch. Furthermore, AMD needs to continue to enhance the new card’s performance. That would lead to more AMD GPU sales.
