NVIDIA at 52 week High. Real or Virtual?

At $28 dollars and change, NVIDIA is at the 52-week high territory today. Nvidia gets a majority of its revenue from its graphic chips made for personal computers, and there were fears that the fall in PC sales would hurt Nvidia just like it has Intel Corp and Advanced Micro Devices Inc. Nvidia however increased revenues. Gaming revenue rose 59 percent, helped by strong sales of its popular GeForce series of gaming chips. “The near term story continues to be PC gaming,” said Wedbush Securities analyst Betsy Van Hees. “That is the key driver for them and they continue to dominate in that area.”

Why is this information helpful to folks like us? I think that is the beginning of a trend here. While we wait for some good VR games to show up and save money to upgrade our hardware to a better graphics card, investing in Nvidia to make a quick profit may not be such a bad idea.

There is a natural symphony of voices from the various players in the VR industry that suggests that NVIDIA is here to grow as more progress is made in the VR arena. The voices are primarily from three players and show synergy in this new shaping of economics. The first of these entities is Epic Games and their Unreal Engine 4. The unreal engine platform provides game developers to target advanced VR games for all three prevalent platforms: Oculus Rift, Samsung VR and Steam VR development. With few short steps in the Unreal Engine platform you can make use of Motion Controllers. Working with Motion Controllers inside UE4 is similar to working with other input devices such as a game-pad or a keyboard. NVIDIA and Epic have a long history of collaboration. In fact, UE4 is optimized for NVIDIA GPUs and mobile chips.

“Epic developed Unreal Engine 4 on NVIDIA hardware, and it looks and runs best on GeForce,” says Tim Sweeney, founder, CEO and technical director of Epic Games. The third player that is the emergent kid is oculus rift. According to their information provided in May of this year, The recommended PC specification for Rift is an NVIDIA GTX 970 or AMD 290, Intel i5-4590, and 8GB RAM. This configuration will be held for the lifetime of the Rift and should drop in price over time. The GTX 970 has stayed at a consistent price point of $340 and the GTX 980 at $850-$900.(pcpartpicker.com). Some suggest that GTX-980 may be overkill for current DK2, but its only a matter of time as new games are designed in UE4 with VR audio and immersive video, you will want to make an upgrade.

In summary, Oculus recommends NVIDIA, Epic games prefers NVIDIA cards for its UE4 platform and NVIDIA is a company that is showing it can innovate and grow in the gaming and Auto verticals. As VR landscape matures with new platform offerings, NVIDIA will be a key player to capitalize on revenues. So fellow Gamers, if you were to pick a stock and make a few dollars to help you with upgrading your hardware, NVIDIA may be a nice place to park that bet. Sounds more real than virtual.

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