The virtual reality (VR) market has massive potential, and NVIDIA (NASDAQ: NVDA) is pulling out all the stops to take advantage of this opportunity. The company has just announced a new line of Quadro graphics processing units (GPUs) based on its Pascal architecture, unveiling it at the SolidWorks World conference in the first week of February, a major event for workstation vendors.
Professional visualization contributed slightly more than 10% of the top line in the third quarter, compared to around 14% of revenue in the prior-year period. This segment has been almost flat for the past eight quarters.
When compared to fast-growing segments such as gaming and datacenter, professional visualization appears less than promising, but this is going to change as the VR opportunity gains traction, and more content creation takes place. NVIDIA will eventually sell more of its professional GPUs due to its strong market share of almost 71% in discrete graphics.
More importantly, the company should be able to sustain its market share in professional GPUs as the first player to the market with a high-bandwidth memory-enabled card. Though Advanced Micro Devices ' upcoming Vega architecture is also based on HBM2, its FirePro line of professional GPUs is yet to hit the market. NVIDIA should have a distinct advantage after launching a powerful product earlier than its rival in a fast-growing market.
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