A graphics processing unit (GPU) upgrade by Nvidia Corp is expected to drive growth in the global gaming industry this year and benefit local firms with high exposure to the sector, Yuanta Securities Investment Consulting Co (元大投顧) said in a client note on Friday.
The US chipmaker is to launch its new Ampere-based GPU in the second half of this year, leading to a rebound in demand for gaming GPUs and notebook computers after weaker-than-expected sales in the sector last year due to Nvidia digesting inventory, Yuanta said.
A successor to units based on the Turing architecture, Nvidia’s next-generation GPU based on the Ampere architecture is to adopt 7-nanometer technology, which would lead to a 50 percent increase in graphics performance while halving power consumption, the note said.
New Taipei City headquartered Micro-Star International Co (MSI, 微星科技), which makes gaming computers, graphics cards and motherboards, is expected to reap the most benefit, as 60 percent of the company’s sales come from the gaming sector, Yuanta said.
Gigabyte Technology Co Ltd (技嘉) and PC company Asustek Computer Inc (華碩) are also expected to benefit from the GPU upgrade, as about 30 percent of their revenues are rooted in the gaming business, it said.
MSI has the highest market share in the gaming business as it leads the gaming laptop market in terms of shipments ahead of Asustek, Dell Inc, Lenovo Group Ltd (聯想) and Acer Inc (宏碁), Yuanta said, citing data compiled by various research institutes.
The market for gaming laptops is expected to grow at a compound annual growth rate of 22 percent from 2016 to 2023, according to a Market Research Future report.
Asustek’s operations showed significant improvement in the second half of last year as the company’s restructuring efforts, which began in 2018, started to bear fruit, Yuanta said.
Gigabyte reported robust sales last quarter thanks to new Nvidia product launches, as well as strong server shipments.
The company’s server business is forecast to maintain a growth rate of about 20 percent this year, Yuanta said.
Yuanta issued a “buy” rating on MSI, Gigabyte and Asustek shares, with target prices of NT$112, NT$63 and NT$262 respectively.
MSI shares on Tuesday closed at NT$86.7 while Gigabyte shares were NT$49.7, having risen 13.48 percent and 23.63 percent last year respectively.
Asustek shares closed at NT$231.5, an annual gain of 14.89 percent.
In Italy’s storied gold-making hubs, jewelers are reworking their designs to trim gold content as they race to blunt the effect of record prices and appeal to shoppers watching their budgets. Gold prices hit a record high on Thursday, surging near US$5,600 an ounce, more than double a year ago as geopolitical concerns and jitters over trade pushed investors toward the safe-haven asset. The rally is putting undue pressure on small artisans as they face mounting demands from customers, including international brands, to produce cheaper items, from signature pieces to wedding rings, according to interviews with four independent jewelers in Italy’s main
Macronix International Co (旺宏), the world’s biggest NOR flash memory supplier, yesterday said it would spend NT$22 billion (US$699.1 million) on capacity expansion this year to increase its production of mid-to-low-density memory chips as the world’s major memorychip suppliers are phasing out the market. The company said its planned capital expenditures are about 11 times higher than the NT$1.8 billion it spent on new facilities and equipment last year. A majority of this year’s outlay would be allocated to step up capacity of multi-level cell (MLC) NAND flash memory chips, which are used in embedded multimedia cards (eMMC), a managed
Japanese Prime Minister Sanae Takaichi has talked up the benefits of a weaker yen in a campaign speech, adopting a tone at odds with her finance ministry, which has refused to rule out any options to counter excessive foreign exchange volatility. Takaichi later softened her stance, saying she did not have a preference for the yen’s direction. “People say the weak yen is bad right now, but for export industries, it’s a major opportunity,” Takaichi said on Saturday at a rally for Liberal Democratic Party candidate Daishiro Yamagiwa in Kanagawa Prefecture ahead of a snap election on Sunday. “Whether it’s selling food or
In the wake of strong global demand for AI applications, Taiwan’s export-oriented economy accelerated with the composite index of economic indicators flashing the first “red” light in December for one year, indicating the economy is in booming mode, the National Development Council (NDC) said yesterday. Moreover, the index of leading indicators, which gauges the potential state of the economy over the next six months, also moved higher in December amid growing optimism over the outlook, the NDC said. In December, the index of economic indicators rose one point from a month earlier to 38, at the lower end of the “red” light.
RSS