Published: April 6, 2023 at 1:52 PM ET
A flood of new game cards for the holiday season has saturated an already crowded market, but one analyst said Nvidia Corp. will become more dominant as the rise of artificial intelligence hastens the recovery of chip makers. and we believe the market is now “on the road to recovery.”
Using survey data from over 25 million active users of online gaming network Steam, B of A Securities analyst Vivek Arya notes that 82.6% of users are using Nvidia NVDA cards. . These cards range from Nvidia’s…
A flood of new game cards for the holiday season has saturated an already crowded market, but one analyst said Nvidia Corp. will become more dominant as the rise of artificial intelligence hastens the recovery of chip makers. and we believe the market is now “on the road to recovery.”
Using survey data of over 25 million active users of online gaming network Steam, B of A Securities analyst Vivek Arya points out that 82.6% of users use Nvidia.
NVDA
card, a “amazing” jump of about 700 basis points month-on-month. These cards range from Nvidia’s GT 10 series running on the ‘Pascal’ architecture released six years ago to the RTX 40 series ‘Lovelace’ cards released in late 2022.
But Arya looks at the data “carefully” given the recent reopening of internet cafes in China. Analysts pointed to survey data showing her 51.7% of participants were listed using a “Simplified Chinese” operating system, compared to 26%-27% of her last month. . He said the 2018-2019 cycle saw a similar “overvaluation” as sales declined before they cleared inventory ahead of new launches.
Arya said she believes the gaming market is “on the verge of recovery” with Q4 sales down 50% and a similar decline expected in Q1. – Years decrease.
Unlike the 2021 holiday season, Nvidia’s game cards, Advanced Micro Devices Inc.
AMD
,
and Intel.
INTC
Arya has received purchase ratings from both Nvidia and AMD.
Arya said one “potentially underestimated” aspect of Nvidia’s video game technology is its increased use of AI, which most games already use at a rudimentary level. I’m here.
read: Nvidia’s CEO predicts AI revenues will grow from ‘very small’ to ‘very large’ in the next 12 months.
“Currently existing games use AI fundamentals to support computer-controlled responses when given certain inputs (e.g. computer-controlled opponents), but actions are pre-programmed. said Arya. “Thus, game/computer-controlled opponents cannot constantly ‘learn’ and adapt from user input/prompts. ”
“With generative AI, [large language models] It can be developed and used to enhance gameplay, allowing for everything from creating new virtual worlds to reducing the predictability of game/CPU-controlled opponents,” said a B of A analyst. I’m here. “By speeding up various tasks, we can potentially speed up game development and reduce costs.”
