GeForce GPUs Make Up 80% of EVGA’s Revenue—But It’s Breaking Ties With Nvidia Anyway

GeForce GPUs Make Up 80% of EVGA's Revenue—But It's Breaking Ties With Nvidia Anyway

Graphics card maker eVGA has made a name for itself over two decades manufacturing and selling Nvidia’s GeForce GPUs, including some of the more attractively priced options on the market. But according to YouTubers at gamers nexus, Analyst John PedyAnd an EVGA forum postEVGA is officially ending its relationship with Nvidia and will not make cards based on the company’s RTX 4000-series GPUs.

EVGA’s graphics cards have exclusively used Nvidia GPUs since its inception in 1999, and according to Gamers Nexus, GeForce sales represent 80 percent of EVGA’s revenue, making it a significant and arguably company-threatening company. change takes place. But EVGA CEO Andrew Hahn told GamersNexus that the decision was about “theory” rather than financials — with Han complaining about a lack of communication from Nvidia about new products, including pricing and availability. information is included.

Nvidia’s pricing strategy for EVGA was clearly another sore point. Nvidia’s first-party Founders Edition cards can often reduce the value of cards offered by EVGA and other vendors, resulting in them either being lower priced or losing sales.

Nvidia can’t be completely wrong here – the sheer dynamics of the GPU market are hard to navigate, too. As Pedy also points out, even though GPU costs have gone up, profit margins for the board partners that make Nvidia GPUs have shrunk. Modern high-end GPUs have substantially higher power, cooling and PCI Express signaling requirements than cards from a few years ago, making them more expensive to design and manufacture, and about the RTX 4000 series Reporting indicates that this trend is only going to continue.

Profit margins for Nvidia's add-in board partners such as EVGA have been declining for some time.
in great shape , Profit margins for Nvidia’s add-in board partners such as EVGA have been declining for some time.

It probably also doesn’t help that the GPU market is back down to earth this year, after more than a year of limited stocks and inflated pricing. sliding cryptocurrency prices and Ethereum cryptocurrency’s move away from GPU mining Both have flooded the market with secondhand GPUs, affecting the demand for new GPUs. In Nvidia’s last earnings call, CEO Jensen Huango Complained of “excess inventory” of RTX 3000-series GPUs who made it Missed quarterly revenue estimates by $1.4 billion,

For Nvidia’s part, its public stance can be summed up as “so long and good luck.”

“We’ve built a great partnership with EVGA over the years and will continue to support them on our current generation of products,” said Nvidia spokesman Brian Del Rizzo. Told Tom’s Hardware, “We wish Andrew” [Han] And good luck to our friends at EVGA.”

The end of the EVGA-Nvidia relationship could hurt Nvidia as well — Peddie says EVGA represents about 40 percent of Nvidia’s GPU market share in North America — but it’s unlikely to surprise the company much in the medium term. Nvidia has other partners, and GPUs in the same series tend to perform similarly, despite differences in cooler design and clock speeds, regardless of where Nvidia’s partners actually built them. In other words, an RTX 3070 is an RTX 3070, and people who don’t have EVGA products available are simply going to buy one from another company.

EVGA will continue to sell its other products, including power supplies, although Han told Gamers Nexus that the company does not plan to return to the GPU market – not with AMD’s or Intel’s GPUs, and with future GeForce product generations. No. Han also said that EVGA will continue to sell cards based on older GeForce GPUs, including the RTX 3000 series, until they are out of stock by the end of 2022. The company will also keep a sufficient inventory of these cards for anyone to complete. Warranty repair or replacement for currently supported cards.

Kyle Orland contributed to this report

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