$NVDA 20231229 497.5 CALL$ Nvidia plans to introduce a modified version of its RTX 4090, the GeForce RTX 4090 D, in China in January in response to the US government trade restrictions, and that version is reportedly 5% slower in gaming and creating compared with the banned RTX 4090, Wedbush said.
"We see implications for NVDA as minimal for now in light of the explosion in AI related revenues, which have minimized the impact of NVDA gaming sales on the company's financial outlook," Wedbush said.
The "more significant question" is how trade turmoil might affect the broader gaming development industry eventually in a key market, Wedbush said.
"While only the highest end NVDA part is currently impacted by US policy today, we would expect future more powerful GPU iterations could be more broadly affected if US limitations on performance remain static," Wedbush said.
Wedbush has an outperform rating on Nvidia with a price target of $600.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
With the US Government trade restrictions, NVIDIA plans to introduce a modified version of its RTX 4090, the GeForce RTX 4090 D, in China. NVIDIA will overcome such hurdles with the opportunities Artificial Intelligence (AI) has to offer. Revenues are expected only to head north with minimal impact on the financial figures. The big question though is China is a very important market globally with the thriving gaming industry and US would need to consider future restrictions and their ramifications.
Will buy more