Nvidia Corp (NASDAQ:NVDA) stock is trading lower Monday amid reports of graphics card pricing witnessing a significant reduction.
The Nvidia RTX 4060, with 8GB of memory, initially launched at €329 in Europe. However, within a week of its release, the price of the RTX 4060 has dropped to below €315, and even as low as €309, marking a noticeable 6% decline.
In contrast, the U.S. has not experienced a similar price reduction, as the RTX 4060 continues to be priced at $299 despite mixed reviews, Forbes reports.
Due to the relatively high pricing and underwhelming reception of the RTX 4060, many PC enthusiasts in both Europe and the U.S. are turning to older graphics cards from Advanced Micro Devices, Inc (NASDAQ: AMD) and Nvidia, primarily if they do not heavily rely on ray tracing or DLSS features and mainly play older or incompatible games.
While it is common for graphics card prices to decline gradually after their initial launch, the GeForce RTX 4080 has proven to be an exception. Since its release, it has not come close to dropping below $1,000 and has mainly remained around $1,200.
Overall, graphics card pricing has witnessed significant reductions in recent months, primarily driven by new releases from both AMD and Nvidia. However, the mid-range segment, particularly the RTX 4060’s market, has been relatively underserved, with AMD only releasing lower-end Radeon RX 7600 and higher-end Radeon RX 7900 series cards. The launch of AMD’s anticipated 7700 and 7800 series products is likely in the autumn.
Gaming enthusiasts seeking information on the best graphics card options 2023 can consult reviews and benchmarks of the RTX 4060, Radeon RX 7600, and RTX 4060 Ti. Additionally, Nvidia’s forthcoming RTX 4060 16GB variant is likely for release later in July, adding another option to consider.
Analyst Rating: Goldman Sachs analyst Toshiya Hari maintains Nvidia with a Buy and raises the price target from $440 to $495.
The stock has gained over 194% YTD, buoyed by the ChatGPT frenzy, making way to the trillion-dollar club valuation ahead of its peers.
Price Actions: NVDA shares traded lower by 1.05% at $420.48 on the last check Monday. AMD shares traded lower by 0.80% at $112.26.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
