Why are Nvidia and AMD stocks rising, and what does it mean for PC Gamers?

It’s a good day for investors and shareholders of Nvidia and AMD, developers and manufacturers of Graphic Cards and other components, after the former’s performance on the market saw a skyrocketing of its earnings. The surprising success of said company came about after the announcement and release of cheaper, more accessible models of its RTX 40 series of GPUs in the form of the RTX 4060 family of cards, but is this the only reason?

The rise of Nvidia AI chips

As you might have expected, the answer is a deafening “no”. The company’s current success came about from the rise of AI technology and its many exponential advances and developments during the past few months. Nvidia has been shifting their focus to creating chips that favor AI technology, and just as it happen during the crypto mining boom before it, early adopters (both individuals and larger companies) are rushing to get their new cards to utilize their power for a different goal other than gaming.

While still incredibly powerful and useful to PC gamers that simply want their machines to output the best possible graphics, it would appear as if Nvidia is more focused on doing what every company is built to do: maximizing profits through keeping on with the times. Their shares in the stock market went up in value by 25% this week, even pushing up their main competitors, AMD (Advanced Micro Devices)a full 9% up. But why?

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The future of Graphics Cards

Both Nvidia and AMD are seen by the majority as the main professionals in the creation of GPUs in all of their forms. From the units you buy and plug into your motherboard to the chips other companies use in their machines, they’re the leaders of this industry and are constantly trying to beat each other. With the current rise of AI technology, their products are now seen as the best options to power all of it, just as Cryptocurrency did just a few years ago.

What does this mean for you, fellow PC gamer? It’s too early to say, but if you were looking to upgrade your machine anytime soon, our personal opinion is that it might be better to do so sooner rather than later. GPU prices are becoming more reasonable with the release of the “lower end” models of the RTX 40 series cards, while AMD continues to offer excellent alternatives for gaming. But just as it happened before, scalpers might flood the market whenever new products are announced.

Source | CNN Business