NVIDIA’s (NASDAQ: NVDA) video gaming business has been moving the needle in a big way for the corporate in recent quarters because of the launch of the RTX 30 series cards. The new graphics cards have triggered a huge upgrade cycle for NVIDIA due to their impressive price-to-performance ratio, creating huge demand that has outpaced supply thus far.
The demand is so huge that NVIDIA expects supply to stay tight for many of 2021, which could affect sales or cause a possible loss of market share to rival Advanced Micro Devices (NASDAQ: AMD).
But the graphics specialist has now found differently to bring its latest hardware to gaming enthusiasts to upgrade their video gaming experience without having to struggle for availability. What’s more, they will also avoid the inflated prices at which desktop GPUs (graphics processing units) are being sold thanks to lack of supply.
NVIDIA expands its laptop ecosystem
NVIDIA has just announced the discharge of the latest laptops powered by the RTX 30 series graphics cards ranging from $799. The gaming laptops will be powered by the entry-level RTX 3050 Ti and, therefore, the RTX 3050 GPUs and go all the high to the more powerful RTX 3080. In addition, these laptops pack real-time ray tracing and deep learning super sampling (DLSS) image upscaling technology.
NVIDIA says that the new laptops are “twice as fast as previous-generation systems, delivering smooth, 60 frames per second gameplay at 1080p in popular titles like Minecraft RTX and Call of Duty: Black Ops conflict .” the corporate also points out that the new laptops are ideal for e-sports enthusiasts. The RTX 3050 Ti laptops can deliver 144 frames per second and low latency while playing popular e-sports like Valorant, Overwatch, and Rainbow Six Siege.
According to NVIDIA, these new gaming laptops give gamers using older machines an excellent opportunity to upgrade without breaking the bank. The chipmaker says that the RTX 3050 class laptops can boost gaming performance by the maximum amount as fourfold compared to the older GTX 10 series laptops. Meanwhile, they also provide a pleasant entry point for those gaming enthusiasts who are starting to call at competitive e-sports.
NVIDIA now offers quite 140 models of RTX 30 series laptops, including the higher-end models powered by the RTX 3060, 3070, and 3080 cards. the corporate says that the amount of RTX 30 series-powered laptops that are thinner than 18mm has increased by five times over the previous generation RTX 20 series cards — indicating that it’s trying to hide all possible price points. That’s a sensible thing to try to given the lucrative opportunity within the gaming laptop market.
A big opportunity is in the cards.
A third-party research report expects the gaming laptop market’s revenue to leap from $9 billion in 2019 to just about $15.6 billion in 2027, driven by the growing adoption of e-sports and improved purchasing power. Additionally, Jon Peddie Research forecasts that the demand for ray-tracing software will increase rapidly, clocking a compound annual rate of growth of 53% through 2023.
NVIDIA already dominates the marketplace for discrete GPUs utilized in desktop PCs, exiting 2020 with 82% of the market compared to AMD’s share of just 18%. The RTX 30 series cards helped NVIDIA claw a considerable chunk of the discrete GPU market back from AMD because the latter commanded almost 31% of the space in Q1 2020.
NVIDIA will be hoping to recreate this magic within the gaming laptop market. However, it will also face stiff competition from AMD that’s climbing up rapidly in notebook CPU (central processing unit) space. AMD’s Ryzen 5000 mobile processors are hugely successful as their sales are ramping up at double the pace of the Ryzen 4000 series.
AMD is looking to create this success by launching 150 laptop models supported by the Ryzen 5000 mobile processors in 2021. However, NVIDIA could also be concerning that AMD is reportedly looking to deploy its RX 6000 mobile graphics cards in laptops from this quarter onward, paving the way for all-AMD gaming laptops powered by its Ryzen CPUs and Radeon GPUs.
However, AMD is affected by a decent chip supply, which has reportedly kept the corporate from launching its laptop GPUs thus far. On the other hand, this provides NVIDIA a plus as its RTX 30 series laptops are already available on the market. Additionally, NVIDIA says that local system builders and OEMs (original equipment manufacturers) also will offer the RTX 30 series laptops.
So, the mixture of attractive entry-level pricing and better availability should give NVIDIA a foothold over AMD within the gaming laptop market and help the previous sustain the terrific growth of its video gaming business that accounts for half its total revenue.
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