Shares of NVIDIA (NVDA 259.50, +3.38, +1.32%) increased 1.6% premarket after the chip-maker revealed the first batch of top-end cards based on its new Turing architecture. The NVIDIA Quadro RTX cards will be available for sale in the fourth quarter with prices ranging from $2,300 (RTX 5000) to $10,000 (RTX 8000).
It is important to note that yesterday's announcement pertains to top-end video cards utilized by filmmakers and other visual professionals. NVIDIA has yet to announce its next line of consumer video cards, which fuel the bulk of NVIDIA's revenue. However, yesterday's announcement suggests the refresh of GeForce GTX GPUs is not far away.
NVIDIA touted the performance leap that has been achieved in the Quadro RTX series, noting that a new rendering engine will enable cinematic-quality production while ray-tracing technology will significantly improve the speed at which applications can simulate the physical world.
Yesterday's announcement comes just days before the market is scheduled to receive NVIDIA's latest quarterly report. The company, which has a history of easily beating expectations, will deliver its second quarter report on Thursday afternoon.
Thursday's report will be watched closely for signs of waning demand associated with continued weakness in cryptocurrencies after the surge that took place late last year. That surge produced a shortage in GTX GPUs as some users rushed to purchase multiple cards for mining of cryptocurrencies. NVIDIA increased its production of GTX1000 series GPUs to meet the surge in demand, but that demand weakened through the first half of 2018 amid plummeting prices of bitcoin and other cryptocurrencies. That dynamic led to concerns about overproduction while NVIDIA's decision to lengthen its product cycle did little to dispel the rumors about oversupply. Yesterday's announcement suggests the company is now comfortable with marketing its next generation of GPUs.
Shares of NVIDIA have spent the past three months in a sideways, 40-point range, with the stock currently trading at levels seen just before the May 10 release of NVIDIA's first quarter report.