Writing in a research report, Ing said that both GPU suppliers continue to benefit from strong core gaming plus emerging applications for new GPU processing.
However, AMD’s transition to the RX series from the R9 this month is proving smoother than Nvidia’s switch to Pascal architecture from Maxwell.
Nvidia is doing well from new GPU applications such as virtual reality and autonomous driving.
He said that pricing was holding despite a steady availability of SKUs from board manufacturers. Ing wrote that he expected a steeper ramp of RX availability compared to last year’s R9 launch, as the new architecture is lower-risk, given that HBM memory was implemented last year.
Ing upped his price target on Advanced Micro Devices stock to 5 from 4, and on Nvidia stock to 52 from 43. On the stock market today, AMD stock rose 0.9 per cent to 4.51. Nvidia climbed 0.2 per cent to 46.33.
Nvidia unveiled its new GeForce GTX 1080, using the Pascal architecture, on 27 May and while Maxwell inventory was running out, Nvidia customers were experiencing Pascal shortages.
“We would grow concerned if the present availability pattern persists in the coming weeks, which would imply supply issues/shortages,” Ing said.