NVIDIA Will Sell Every Last Titan Black That It Can Make

NVIDIA releases another winner that should sell like hotcakes.

Feb 20, 2014 at 11:00AM

Something that Wall Street just doesn't understand is how ravenous PC gamers are for the latest and greatest graphics technology. Until games can be rendered in quality indistinguishable from reality, at 120 frames per second in an integrated graphics product, there will continue to be a very real need for bigger, badder, and more powerful discrete graphics cards. Enter NVIDIA's (NASDAQ:NVDA) latest GeForce GTX Titan Black Edition, a $1,000 beauty that will sell like hotcakes.

GTX Titan Black is actually a steal
When the original Titan from NVIDIA hit the market, it was extremely tough to buy one. That's partly due to it being a 7.1 billion-transistor beauty that was very expensive to build -- there are very few, if any, chips with that many transistors out there today, and NVIDIA built a monster with GK110. So, the quantities were limited. But a bigger part is that this represented an extreme value for non-gamers in search of a lot of computing power, in addition to the deep-pocketed gamers.

Just how is a $1,000 graphics card considered a value? Much of NVIDIA's gross-margin dollars in GPUs don't come from GeForce -- they come from its professional workstation cards known as Quadro. These typically share the same hardware as their GeForce counterparts, but they usually come with enhanced firmware and driver stacks that make the solutions more suitable for workstation/computing workloads. They're also usually significantly more expensive.

Illustrating the point
The GTX Titan Black is a fully featured GK110 die with all of its cores enabled and sells for $1,000. How much would one have to pay for a comparable Tesla card? The nearest comparable card is the NVIDIA Tesla K20X, which retails for north of $3,200, and actually comes clocked lower. Professionals in need of the best aren't going to cheap out and buy gamer GPUs. They'll pony up for the Quadro or Tesla, depending on their workload. However, for anybody in need of high-performance computing on the cheap, these cards are an absolute steal relative to their Quadro/Tesla siblings.

The AMD "shortage" also creates opportunity
Thanks to their talent as crypto-currency mining devices, AMD's (NASDAQ:AMD) latest $550 R290X gaming cards are in short supply in North America, as crypto-currency miners gobble them up. This has driven up the prices of AMD's R290X considerably in North America. For gamers who aren't interested in crypto-currency mining, NVIDIA's highest-end cards are actually a pretty sweet deal. A GTX Titan Black for $1,000 offers more gaming performance than a $900 (post-shortage) R290X, as does a 780 Ti.. So, gamers looking for the "best" will either go with a 780 Ti for around $700 or a Titan Black for $1,000.

Foolish bottom line
As a "cheap Tesla," the GTX Titan Black is a great deal. Gamers who are looking for the absolute best will likely buy a GTX Titan Black for $1,000 or a GTX 780 Ti for $700. Both offer higher gaming performance than the R290X. As a final point to ponder, take a look at the availability of the GTX Titan Black on Newegg.com, the world's leading computer hardware site:


Source: Newegg.com

NVIDIA will sell every one of these that it can make.

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Ashraf Eassa owns shares of Nvidia. The Motley Fool recommends Nvidia. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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