NVIDIA CEO's Keynote At CES Exceeded Expectations

NVIDIA Corporation NVDA CEO Jen-Hsun Huang made several new product and partner announcements at the Consumer Electronics Show on January 4. While the details provided by Huang exceeded expectations, the announcement of the GeForce 1080 Ti product launch is still awaited, B. Riley’s Craig Ellis said in a report.

Ellis maintained a Buy rating on the company, with a price target of $100.

CES Auto News Exceeds Expectations

Most of the announcements made by Huang came in the auto space. Although the advanced driver assist news was expected, “we were pleasantly surprised with details and implications for longer term revenue for products like Drive PX2 (code name Parker) and Drive PX3 (code name Xavier),” Ellis wrote.

NVIDIA announced the AI Co-Pilot as a software add on to ADAS. The latest addition combines road and driver sensing and aids increased interaction and safety. The Dive PX ADAS platform has been adopted by Bosch, and this should “meaningfully broaden go to market capability which we suspect is stretched a bit thin across NVDA’s three rapidly growing platform groups,” the analyst commented.

Moreover, Audi announced a driverless car initiative, aiming for full automation by 2020. This is aided by NVIDIA’s Autopilot capability. Audi nor Bosch would likely make a meaningful contribution to NVIDIA’s revenue in F19 and beyond.

GeForce 1080 Ti Refresh Awaited

NVIDIA announced GeForce Now, which provides a virtual gaming platform to PC users without needing an add-in gaming card. The company has priced GeForce Now at $25 for 20 hours of play and estimates there are 1 billion PC users with low quality graphics capability. This represents a significant expansion potential in the TAM [total addressable market], Ellis noted.

“The one expected announcement which did not hit was the high end GeForce 1080 Ti product launch. We've been expecting this product since 3Q16. We don't believe there are any issues since it likely uses the same processor as the top-shelf Titan X, and suspect a launch is likely within the month,” the B. Riley report further stated.