Your Next Wave of Tech Riches Will Come From…
I love my 4K television. The images are vivid and the resolution is amazing.
But it’s soon to become obsolete.
Major display manufacturers like Samsung, Sharp and Sony are all working on the next level in TV display tech.
They have to. Display technology commoditizes rapidly. Prices fall fast. Competition for your eyeballs is fierce. Margins plummet as a new TV technology matures.
The way to make big profits is to stay on the bleeding edge of the game, offering customers the latest and greatest technology.
And that means your new or almost new 4K TV will be replaced over the next few years by 8K TV as the standard offering in the electronics stores.
It’s all about resolution. The more pixels — the tiny individual lit elements that are used to create a picture — crammed into a screen, the more realistic the images a TV displays.
When the industry moved to 720p format, displays contained nearly a million pixels. Then the 1080p TVs that were the standard product of a few years back crammed 2 million pixels onto the screen — double.
But 4K televisions quadruple that number to 8 million pixels.
8K displays will quadruple that pixel count once more. 8K displays will contain over 33 million pixels.
We’re starting to see the first (really expensive) models on the market. New 8K TVs can run tens of thousands of dollars. 8K computer monitors can run $5,000.
But those prices will eventually drop, just as has happened with every new generation of display technology.
And as those prices drop, more and more people will be buying 8K televisions and computer monitors.
8K is going to be an incredibly bullish trend for tech plays like Nvidia (NASDAQ: NVDA).
Nvidia is the No. 1 maker of discrete graphics processing units (GPUs). These are the computer circuits that are used to render video in applications like computer video games and virtual reality.
It takes a lot of processing power to render a fast-action computer game, and gaming enthusiasts are avid buyers of the latest and most expensive GPU cards.
The move to 4K displays over the past few years has been really good for Nvidia. NVDA has been performing really well, in part thanks to the use of GPUs in autonomous driving, artificial intelligence and virtual reality.
But the backbone of the company that invented the GPU remains gaming. That’s where most of the earnings come from today.
Display upgrades drive more sales to NVDA. The more pixels you have to render, the more powerful the GPU card has to be. That means steady sales of high-end, high-margin GPUs for NVDA.
With 8K displays starting to show up, we’ll see a new wave of demand for the fastest and most powerful GPUs.
Hundreds of trillions of pixels are going to drive hundreds of billions in profits for Nvidia.
And NVDA is ready. Not only are the first 8K displays hitting the market but video is already being shot in 8K. 8K video post-production requires really powerful graphics technology. Nvidia’s latest cards are now designed and built to handle that workload.
I knew we were on the leading edge of something huge back in early 2015 when I demo’d experimental Nvidia-powered VR tech. My followers are up 1,240% on NVDA since then.
VR requires really high specs to work well. In order to fool the human eye and brain, you need really high resolution, super-short response times and uber-high refresh rates.
8K will make VR much better and more realistic. The first 8K VR headsets are expected to start shipping at the end of the month.
Will the display-upgrade profit engine dry up for NVDA once 8K is fully mainstream?
Not a chance…
… that’s when we get ready for 16K tech.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily