EVGA Ends 22-Year Relationship with Nvidia
"EVGA ends Nvidia relationship" was a headline few expected last week. The company announced it will be exiting its longstanding exclusive partnership with the graphics manufacturer and leaving the GPU business entirely. Previously Nvidia’s largest AIB supplier in North America, the California-based company blamed Nvidia’s poor communication and heavy-handed control. Is this an anomaly or something more?
A Clean Break
EVGA CEO Andrew Han told GamersNexus that not only will it not participate with Nvidia’s RTX 40 series, but it will wind down production of RTX 30 series cards by end of year. Those cards will be set aside for warranties and replacements. Han claims EVGA is not interested in working with AMD or Intel.
- EVGA has been an Nvidia-only partner since 2000
- 40% of Nvidia’s North American AIB sales
- The lion’s share of EVGA’s revenue is video cards
- EVGA may have overordered Nvidia GPUs
The Final Straws
EVGA’s decision largely comes down to three issues.
EVGA’s decision largely comes down to three issues.
- Poor Communication: EVGA claims Nvidia treated it as a seller, as opposed to a manufacturing partner.
- Nvidia allegedly did not inform EVGA and other partners of critical information like MSRP or component costs before product announcements
- Suffocating Control: EVGA felt Nvidia was too strict with its design and price controls
- EVGA historically customizes its video cards more than most AIB partners
- Undercutting Sales: Nvidia FE cards are usually a couple hundred dollars cheaper than partner cards
- As both supplier and seller, Nvidia can more aggressively price FE cards
Where Do They Go From Here?
Nvidia: The current glut of now last generation cards will help ease the transition. The GPU leader will likely increase FE shipments for Best Buy and lean on other AIB partners to fill the hole left by EVGA. EVGA: The mid-sized manufacturer is promising no layoffs, but that seems unlikely given how much revenue it is leaving behind. It will likely lean into the power supply segment, betting that gaming PCs will continue to be more and more power hungry. Intel: We’ve all been where EVGA is: heartbroken and newly single, swearing off relationships. But sometimes a chance you can’t refuse comes along. If Intel is committed to Arc but don't at least show up to EVGA's offices with an open checkbook, they’re fools.
Nvidia: The current glut of now last generation cards will help ease the transition. The GPU leader will likely increase FE shipments for Best Buy and lean on other AIB partners to fill the hole left by EVGA. EVGA: The mid-sized manufacturer is promising no layoffs, but that seems unlikely given how much revenue it is leaving behind. It will likely lean into the power supply segment, betting that gaming PCs will continue to be more and more power hungry. Intel: We’ve all been where EVGA is: heartbroken and newly single, swearing off relationships. But sometimes a chance you can’t refuse comes along. If Intel is committed to Arc but don't at least show up to EVGA's offices with an open checkbook, they’re fools.
