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Nvidia Conference: Virtual Reality, Smart Cars, Bartender Robots

Robot bartenders, a drone racetrack and liquid nitrogen-concocted food? Silicon Valley geeks know how to get down — and that’s just after-hours. Next week, graphics-chipmaker Nvidia ( NVDA ) is slated to host its annual GPU Technology Conference at the San Jose McEnery Conference Center where virtual reality, artificial intelligence and self-driving cars will take center stage. In conjunction, Nvidia will hold its analyst day Tuesday, when CEO Jen-Hsun Huang is scheduled to deliver a keynote talk. RBC Capital analyst Mitch Steves expects Nvidia to offer an update on its Pascal GPU architecture, virtual-reality offerings and automotive efforts. Steves upped his price target to 36 from 32 on Nvidia stock, which he rates a sector perform. “Overall, we are positive on the VR opportunity and believe that growth rates will remain robust,” he wrote in a research report. Virtual reality is getting a big splash this year, and tech names  Apple ( AAPL ), IBM ( IBM ), Alphabet ( GOOGL ) and Tesla Motors ( TSLA ) are on deck to attend the GTC alongside myriad startups like BriSky, a maker of industrial drones, and Lucid, which makes 3D cameras. Under the GTC umbrella, BriSky, Lucid and 10 others will compete Wednesday for $100,000 during the Emerging Companies Summit. Another eight are slated to present their VR tech in an eight-minute elevator pitch for a chance at $15,000. There’s no denying the summit’s success, which helped launch VR headset-maker Oculus and video game-streaming service Gaikai into worldwide recognition. Facebook ( FB ) later acquired Oculus for $2 billion, and Sony ( SNE ) paid $380 million for Gaikai. Mellanox Technology ( MLNX ) and Xilinx ( XLNX ) will present during the OpenPower Summit, Tuesday through Friday. Moore’s Law physics make power a challenge within the industry. Data centers need faster chips, but those chips overheat quicker. Other splashy GTC events include keynotes from IBM Watson Chief Technology Officer Rob High and Toyota Research Institute (under Toyota Motors ( TM )) CEO Gill Pratt on Wednesday and Thursday. Separately, GTC will feature speakers from Nvidia, Twitter ( TWTR ), IBM, Baidu ( BIDU ), Google and Disney ’s ( DIS ) Pixar.

Augmented Reality Could Be The Next Big Leap For Personal Computing

Major tech companies like Alphabet ( GOOGL ) and Microsoft ( MSFT ) believe the next leap forward in personal computing could be augmented reality glasses, with Microsoft set to usher in the new era on Wednesday. Computerized glasses that overlay information onto a wearer’s field of vision could replace having to glance at smartphones, tablets and PCs for many applications. Some futurists say augmented reality glasses — as opposed to virtual reality — could one day replace smartphones. With AR computer headsets like Microsoft’s HoloLens, users can get visual and audio instructions from remote experts for tasks such as electrical and plumbing repairs. Such glasses can also give people on-screen navigation and directions, deliver alerts and messages, and assist in identifying objects and locations. Commercial applications are expected to be early drivers of augmented reality — aka mixed reality — applications. Many field service, warehouse and maintenance workers could benefit from hands-free smartglasses technology that can be operated by voice commands, gestures or eye movements. “AR will have a profound impact, particularly on how we do a lot of jobs and how a lot of business gets done,” Tom Mainelli, an analyst with market research firm IDC, told IBD. “But it’s very early days.” With the  developer launch of Microsoft’s HoloLens on Wedneseday, augmented reality could be starting another hype cycle, Mainelli said. The last hype cycle around AR crashed a few years ago when Alphabet’s Google Glass sputtered during its development. That early version of Google Glass was more of a head-up information display than a true augmented reality headset. It had an eye-level display, forward-looking camera, wireless connectivity and microphone for voice commands. By contrast, Microsoft HoloLens projects images and visual information onto the lenses of its special glasses in the wearer’s field of view. The HoloLens headset also is packed with sensors for integrating the real world with computer data. Microsoft is at first focusing on commercial applications for HoloLens. First out is the Development Edition of HoloLens, which costs $3,000 and is targeted to software developers and enterprises. Microsoft estimates it could take another five years for a consumer version to hit the market. “There is going to be a lot of business use cases for augmented reality before it comes to the consumer market,” Brian Blau, an analyst with research firm Gartner, told IBD. Augmented reality glasses are likely to find early use in service industries, logistics, health care, education and design, analysts say. Confusing matters is the fact that many research firms like to combine augmented reality with virtual reality in their market projections. While both technologies feature wearable displays, VR is an immersive experience that blocks out your surroundings and AR uses see-through displays for adding digital data to the real world. Virtual reality is coming to market sooner,  Facebook ’s ( FB ) Oculus Rift starting to ship on Monday and Sony ’s ( SNE ) PlayStation VR expected to launch in Q3 or Q4. Both products, for now, are focused on video games and surround entertainment. Revenue Of … $120 Billion By  2020? Augmented reality is about accessing information and making people more productive. In January, Digi-Capital forecast that AR/VR revenue could hit $120 billion by 2020, with AR grabbing about $90 billion and VR at $30 billion, up from practically nothing last year. Besides Alphabet and Microsoft, other companies developing augmented reality technologies include Atheer, Daqri, Canon, Magic Leap, Meta, Osterhout Design Group, Seiko Epson and Vuzix ( VUZI ). Other companies said to be investing in AR include Apple ( AAPL ), Facebook, Samsung and Snapchat. Apple is likely looking at augmented reality glasses as an eventual replacement for the smartphones, Piper Jaffray analyst Gene Munster said in research report last week. He predicts Apple will come out with “mixed reality” glasses in the 2021-2025 time frame. “We believe 10 years from now, Generation Z will find reality inefficient,” he said. “Being accustomed to having instant information from smartphones and other devices, Generation Z will see the benefits of mixed reality headsets that augment the world with real-time information as they need it and in their field of view, without needing to look at one piece of information at a time on a smartphone.” For AR headsets to go mainstream, they’ll need to be much smaller and less expensive, analysts say. The experience also will need to improve, with refinements to speed, field of view and resolution. Augmented reality will be in the development stage for the next few years, Mainelli said. AR headsets will ship in small volumes to developers and for proof-of-concept projects, he said. “It will take a couple of years before we start seeing meaningful volumes,” he said. “And even then these will be expensive devices, which is why it will be a commercial play first.”

Facebook’s Oculus Rift: Reviews Mixed, As Content Still Lags

What’s clear from the swath of reviews of the Facebook ( FB )-owned Oculus Rift virtual-reality headset is that the technology has most certainly arrived, but for the most part, the content still needs to follow. From the reviews and my own experience with the Rift, it’s hard to argue that — at the very least — new types of video games are right around the corner. The Rift is a solid piece of technology that works reasonably well under most circumstances, and video game reviewers  mostly agree . Hardware-wise, the main gripe among the reviews was that the Rift didn’t ship with motion sensitive controllers that Oculus demonstrated this month at the Game Developers Conference in San Francisco. The Rift shipped with a Microsoft ( MSFT ) Xbox One controller. Such controllers would allow anyone donning the headset to make gestures and manipulate VR content in a more life-like fashion. The motion-sensitive controllers are coming later this year, Facebook says. But as IBD reported from GDC on March 17, the hardware is here (or within a whisker), but the content has yet to come. It’s not clear whether the software shipped with the VR headset will match the impressive hardware. Of the titles I tried at GDC, none were too compelling, though I sampled a mere seven games. Reviewers at the  New York Times , the  Wall Street Journal  Digits blog (but not the newspaper itself ), and gaming website IGN  (among others) agree with my assessment. The Rift debuted with 30 titles, ranging from $10 to $60. The majority of the reviews that IBD looked at for this post were in gaming publications, and reviewers acknowledged little out there yet in the way of worthwhile non-gaming VR content, such as VR movies that video-streaming companies such as  Netflix ( NFLX ) are exploring. The Rift headset’s $600 cost was cited in many reviews as a deterrent to all but the most dedicated of gamers — especially considering the headset requires a PC with advanced graphics hardware that runs about $1,000. And it doesn’t yet work with Apple’s OS X. Many reviews of this first-generation Rift, such as the review by the New York Times, said reviewers eagerly await better content and future generations of the device. And Facebook will soon have company. HTC plans to launch its VR headset, Vive, in April. It will retail for about $800 and feature hardware similar to that of Facebook’s Rift. Sony ( SNE ) also has a VR offering coming for its PlayStation console, likely to hit stores in Q3 or Q4.