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Nvidia (NVDA) Stock Gains as Rumors of Gaming GPU Launch Heat Up

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Shares of Nvidia (NVDA - Free Report) gained about 2.3% on Thursday as rumors of the company’s upcoming gaming GPU launch continue to heat up. This week, investors have heard plenty of rumors related to Nvidia’s highly-anticipated update to its GeForce GPU line.

On Monday, a report from The Verge suggested that the next-generation devices, rumored to be called the GeForce GTX 11 Series, might be launched as soon as next month. The new products would be the first update to the GeForce gaming line in more than two years.

Although Nvidia CEO Jensen Huang recently said new GeForce GPUs would come “a long time from now,” The Verge cited recent activity—including Nvidia scheduling a mysterious PC-related event and a Lenovo product manager freely talking about the GTX 11 Series on camera during E3—as reasons to be believe the update is coming sooner rather than later.

The Verge also mentioned that images of a supposed engineering sample of a GTX 1180 leaked last week. The tech publication noted that the images show dozens of installed GDDR6 memory modules from Micron (MU - Free Report) , which are not supported by any existing GPUs.

On Thursday, fresh reports added more fuel to the rumor fire, with Hot Hardware reporting that Nvidia is stockpiling about one million GTX 11s in order to meet demand for a Q3 or Q4 2018 launch.

“It has been two years since the Pascal-based GeForce GTX 10 Series landed, so there is pent-up demand for this family's successor to fuel the 4K gaming craze,” wrote Hot Hardware’s Brandon Hill.

Despite the rapid growth of Nvidia’s Datacenter & OEM/IP segments, the company’s Gaming division remains its largest revenue generator by far. Nvidia reported total Gaming revenue of $1.72 billion in its latest quarter, up 67% from the year-ago period.

This type of rapid growth clearly shows that Nvidia is still resonating quite well with its core gaming audience. Nevertheless, investors will be excited about the chance of a new product launch invigorating the brand even further.

Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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