Under normal circumstances, an AI-backed GPU would probably get a lot of attention. That’s likely what tech stock Nvidia (NASDAQ:NVDA) hoped would happen, but not what actually happened. In fact, Nvidia lost nearly 2.5% in Wednesday’s trading following the announcement.
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The new GPU, known as the GeForce RTX 4070—a lower-priced model that taps the Ada Lovelace architecture to power it—offers up not only real-time ray-tracing capabilities but also DLSS-3 neural rendering. That opens up quite a bit of new power in PC gaming and may really spark up some of the latest games. The new GeForce starts at $599 and will provide about the same rendering capability as the RTX 3080 but will only need half the power.
However, the move hasn’t completely endeared users. Several analysts in the sector have complained previously that Nvidia’s GPUs don’t have the memory to go the distance, particularly against comparable offerings from AMD (NASDAQ:AMD). Indeed, a Tom’s Hardware review found the DLSS-3 feature “not really a killer” and noted that it was not only more pricey than the 3070 from the last generation but also boasted a largely unnecessary 16-pin power connector. Nvidia also notes that the 4070 will be sufficient to run games at 1440p, which is a good compromise between modern high-def and outright 4K.
Analysts, meanwhile, are certainly on board with Nvidia as a stock. Nvidia stock is currently classified as a Moderate Buy by Wall Street, with Buy ratings beating both Holds and Sells by three to one. However, Nvidia only offers a tepid upside potential at 5.89%, thanks to its average share price target of $280.56.
