Nvidia Corp. shares dragged on the broader chip sector on the first day of 2023 trading Tuesday as the chip maker rolled out a slew of announcements targeted at the videogame and auto markets.
Nvidia
NVDA,
shares fell as much as 3.5% to an intraday low of $140.96, and were last down 2.5%. In comparison, the S&P 500 index
SPX,
was off 0.7%, and both the tech-heavy Nasdaq Composite Index
COMP,
and PHLX Semiconductor Index
SOX,
were down 1%.
The chip maker confirmed rumors from over the weekend and announced at CES 2023 the launch of its RTX 4070 Ti gaming chip at a manufacturer’s suggested retail price of $799, following last year’s CES announcement of the “big ferocious graphics processing unit” RTX 3090 Ti for $2,000, that was selling for less than half of that by September.
Read: ‘Fundamental bottom’ is coming for chips, and this stock could be the biggest winner, analyst says
The 4070 Ti delivers faster performance than the 3090 Ti for nearly half the power, Nvidia said. That follows a holiday shopping season that was the polar opposite of last year’s when it was near impossible to find a top-end gaming card much less one remotely close to the MSRP. This past season, Nvidia launched its 40-series of cards, while both Intel Corp.
INTC,
and Advanced Micro Devices Inc.
AMD,
launched their new cards, and plenty of them were available just days before Christmas.
For instance, new cards from Nvidia went on sale Oct. 12, and the mid-tier $1,200-listed RTX 4080 cards, which had been released just before earnings, and sold out quickly.
Read: Wall Street places more bets on chip sector’s soft landing in 2023
Nvidia also announced it was partnering with Hon Hai Technology Group
2317,
or Foxconn, which is usually associated as the maker of Apple Inc.’s
AAPL,
iPhone manufacturer, to make electronic control units based on Nvidia’s Drive Orin system on a chip, and to make electric vehicles that use Drive chips and sensors.
And why not just put the two together? Nvidia also announced it was bringing its GeForce Now streaming games service to a host of new cars.
The company said that auto makers Hyundai Motor Group
005380,
BYD
1211,
and Swedish EV maker Polestar will be bringing GeForce Now to their onboard entertainment systems.