Nvidia launched their new Ada Lovelace GPU lineup this week. In general, performance improvements are massive, with as much as 2x to 4x the performance in next-generation games which heavily utilize ray tracing and AI rendering techniques. Previous generation games using traditional rasterization techniques will have a 1.5x to 1.7x performance improvement. These performance gains are significant on the surface, but they come with a large manufacturing cost increase which hampers product positioning and causes questionable marketing moves. Nvidia’s competitive positioning will be its weakest in a decade. Our estimated cost breakdown, shown later in the article, indicates Nvidia may have a cost disadvantage versus AMD’s RDNA 3. The first cost structure disadvantage in nearly a decade for team green.
As a reminder, our Ada Lovelace specifications from April are near identical to what Nvidia announced this week. Additionally, our die size estimates from April were 1% of the actual AD102 and AD103 die size and within 2% for AD104. This leaves us quite comfortable with the rest of our report on the unreleased lineup.