NVIDIA (NVDA - Free Report) , in collaboration with ASUS, announced that it will showcase new gaming displays — the ASUS ROG Swift 360 — at the Consumer Electronics Show, which is scheduled to be held on Jan 7-10.
The new displays are based on NVIDIA’s G-SYNC technology and will be available later this year.
Notably, in the new displays, game frames are displayed once every 2.8 milliseconds, which makes it six times faster than traditional displays. This is important for e-sports enthusiasts and professional gamers as victory is largely dependent on lower latency.
These displays will complement NVIDIA’s GeForce RTX gaming GPUS to enhance the competitive gaming experience.
Rising Demand for E-sports
While e-sports is currently a small part of the huge video-game industry, it is growing exponentially. Competitive video game advertising revenues in the United States are expected to surpass $200 million by 2020, per an eMarketer report.
Moreover, per a Mordor Intelligence report, players will spend $4.5 billion on immersive gaming by 2020.
Further, every month, more than 60% of GeForce gamers worldwide play competitive games. About $211 million was awarded as e-sports prize money last year, up 29% year over year.
Efforts to Boost Gaming Business
The strong line-up of advanced graphics cards has made NVIDIA a favorite graphics card provider among the PC makers. A strong uptick in PC gamers and eSports players, and higher spending on the gaming GPUs are key catalysts.
Further, NVIDIA’s Turing GPU and real-time ray tracing technology are witnessing a massive adoption. To propel wider embracement, the company is enabling ray tracing backup in several GeForce GTX GPUs, which is likely to lend developers a massive installed base of gamers. In fact, the GeForce RTX SUPER GPUs' launch is expected to further cement its leadership in the higher end of the market.
The company noted earlier that the increasing number of blockbuster AAA titles has pledged support for NVIDIA RTX ray tracing technology. To this end, recently, Microsoft (MSFT - Free Report) teamed up with NVIDIA to add the technology to Minecraft. Moreover, per the company, Activision Blizzard's (ATVI - Free Report) Call of Duty: Modern Warfare, Ubisoft Toronto's Watch Dogs: Legion and Tencent NExT Studios' Synced: Off Planet have adopted RTX.
Recently, NVIDIA also announced SUPER versions of GeForce GTX GPUs. Additionally, it launched the RTX Broadcast Engine, which uses the AI capabilities of GeForce RTX GPUs to enable virtual greenscreens, filters and AR effects in live streaming.
Notably, in the third quarter of fiscal 2020, NVIDIA’s gaming revenues grew 26.4% sequentially, backed by strong growth in GeForce desktop and notebook GPUs.
This well-timed move is likely to strengthen the company’s competitive edge against its major competitor, Advanced Micro Devices (AMD - Free Report) , which rolled out the Radeon RX 5500 GPU last year to provide mainstream gamers with an enhanced gaming experience. Notably, Lenovo, Acer, HP and MSI are set to adopt the latest AMD GPU in their respective PCs.
NVIDIA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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