NVIDIA Corporation (NASDAQ:NVDA) just introduced the GeForce RTX 4070 GPU (graphics processing unit). The newly released chip is driven by the company’s AI-enabled Ada Lovelace architecture, which promises to provide gamers with a more realistic gaming experience.

NVIDIA announced that the RTX 4070 graphics cards would be available for purchase beginning April 13 for $599. The newly introduced chip is thought to be the company’s mid-range GPU, which can cost up to $1,599.

Furthermore, the GeForce RTX 4070 will be the company’s most affordable GPU chip, utilizing the company’s most recent AI technology. According to NVDA, the Ada Lovelace architecture-powered CPU will incorporate “DLSS 3 neural rendering, real-time ray-tracing technologies, and the ability to run most modern games at over 100 frames per second at 1440p resolution.”

Ada Lovelace Gives NVIDIA a Technological Advantage

We feel that NVIDIA’s Ada Lovelace design has given it a technological advantage over its competitors in the graphics card industry. Ada Lovelace architecture-based processors, named after a 19th-century mathematician who many regard to be the first computer programmer, use AI to improve video game graphics.

Taiwan Semiconductor Fabrication Company (NYSE:TSM) manufactures Ada Lovelace architecture-based GPUs using its “4N” chip fabrication technique. NVIDIA said that the GPUs will use Micron Technology’s (MU Quick QuoteMU – Free Report) GDDR6X memory and will feature upgrades to its shader cores, RT cores, and Tensor cores.

Ada Lovelace-powered graphics cards may quickly improve existing games, and the upgraded AI component will learn from gaming. The RTX 4070 chip, according to NVIDIA, will be 2.6 times faster than the RTX 2070 SUPER and 1.4 times faster than the GeForce RTX 3080 with DLSS 3.

NVIDIA claims that using the DLSS 3 functionality significantly improves the performance of their Ada Lovelace GPUs. Furthermore, the newly released RTX 4070 GPU “also excels in traditional games that do not include more advanced features such as ray tracing and DLSS,” according to the company in a statement.

NVIDIA’s RTX 4070 processor, built on Taiwan Semiconductor’s 4N chip manufacturing technology and Micron memory, consumes approximately half the power of the RTX 3080 and adds 2 GB of memory. The RTX 4070 GPU is backed up by 36 MB of L2 cache and 12 GB of ultra-fast GDDR6X memory.

NVIDIA has always maintained a substantial technological advantage over its rivals in the graphic card industry due to its consistent focus on developing new and more powerful products.

A New Chip Will Boost Gaming Revenues

The RTX 4070 chips, which cost $599, are now NVIDIA’s cheapest accessible GPU that employs AI technology. This will assist the company in driving gaming revenues, which have been hampered by a drop in demand for its chips used in the gaming end market.

Gaming revenue at NVDA fell 46% year on year to $1.83 billion, accounting for 30.3% of overall fourth-quarter fiscal 2023 revenue. The year-over-year decrease was mostly attributable to fewer gaming product sales. This represented a decrease in channel partner inventory levels amid weak demand caused by macroeconomic headwinds and Chinese lockdowns, which weighed on consumer demand.

We anticipate that the new lower-cost GPU will assist the company in driving demand for its gaming processors.

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