I already have great love for Microsoft's (NASDAQ:MSFT) new Surface Book laptop. It is a cheaper but more powerful alternative to the MacBook Pro for graphic design purposes. Aside from its energy-efficient Skylake Intel (INTC) CPU and integrated Intel HD 520 GPU, I'm intrigued with the secret discreet Nvidia (NVDA) discreet GPU that Microsoft hinted about its upcoming equalizer to the MacBook Pro.
The Surface Book, like the Surface Pro 4, are obviously aimed for enterprise employees. However, the teaser about a secret new Nvidia notebook GPU hints Microsoft wants to compete in the lucrative high-end laptop gaming industry.
Furthermore, a discreet GPU is understandable, since the $2,699 price tag of the highest configuration of the Surface Book is only reasonably sellable if it comes with a decent discreet GPU.
It is no secret that all graphics design industry-standard software like Photoshop CC and AutoCAD now rely on GPU acceleration to further accelerate their performance. Microsoft would not impress professionals if it only sells the $2,699 Surface Book bundled with a weakling integrated Intel HD Graphics HD 520 GPU.
Aside from the lack of touchscreen support of the MacBook, I opine that winning the Mac-using graphic designer will be easier done through the Nvidia-powered Surface Book.
Why It Matters
Nvidia definitely gets a small tailwind from Microsoft's first high-end laptop. Creative professionals rely on the MacBook Pro precisely because it used to have a discreet Nvidia GPU. High-end laptops needs the extra compute power of a dedicated graphics processing unit.
Microsoft's use of an Nvidia GPU for its first high-end laptop is an important win for Nvidia. Earlier this year, Apple (AAPL) replaced the Nvidia GeForce 750M GPU with Radeon M370X for its MacBook Pro 2015 product.
The secret special GPU for the Surface Pro will be likely as good as the Radeon M370X. Microsoft needs to make a big splash immediately with its Surface Book like it did last year with the impressive hardware specs of the Surface Pro 3. That tablet/notebook was already an excellent Photoshop/Illustrator tool even without a discreet GPU.
The Surface Book's discreet Nvidia GPU will make it an ultimate graphic artist's weapon. Adobe (ADBE) has been collaborating with Nvidia to optimize its Creative Cloud software products via GPU acceleration. In essence, the Surface Book will not only rely on the Intel CPU but also exploit the compute power of a Maxwell Nvidia GPU to speed up the workflows of deadline-hampered professionals.
The Surface Book is not a mere expensive toy for corporate/ad agency slaves too. Microsoft obviously intends to market its first Surface Book to gamers. My old four-year old Acer Aspire laptop with 2GB GeForce GT 630M can play any modern PC game effortlessly on reduced graphic settings.
I therefore expect the newer secret Maxwell mobile GPU of the Surface Book to satisfy the graphics quality/performance requirements of any demanding PC gamer. I like Radeon GPUs but it is not a secret that the best rated Intel-powered gaming laptops now only uses discreet GPUs from Nvidia.
I think that Nadella is trying to build a vertically integrated Microsoft that will sell its own high-end laptops and desktop computers that could compete against the pricey Mac OS X machines from Apple.
My Takeaway
NVDA is a Buy. Nvidia is and will remain the top vendor of discreet notebook GPUs. I expect Microsoft to be a long-term client for Nvidia's industry-leading notebook GPUs. An ambitious newcomer to the high-end laptop industry (like cash-rich Microsoft) will always try to buy the best hardware components. Choosing only the best GPU and CPU ensures the first Surface Book do not disappoint the expectations of industry analysts and consumers.
It is sweet revenge that Nvidia is now helping Microsoft create a potent rival to the Radeon-powered MacBook Pro. Apple's decision to drop the GeForce 750M in favor for of the Radeon M370X GPU inside its latest popular MacBook Pro, could easily be offset by healthy future sales of the Surface Book.
I know MacBook Pros are the industry standard tools among the majority of creative professionals. However, I opine that the lack of a touchscreen-based Mac laptop will eventually encourage creative professionals to defect to the Nvidia-powered Surface Book.
Yes, it is true that an iPad could be used in conjunction with a MacBook to create digital illustrations and manipulate images. However, the convenience of using/buying, buying/using just one product that can act as a tablet or computer anytime, is why I like prefer the Surface Book/Surface Pro 4 over Apple's costly MacBook-Plus-iPad concept.
