EVGA, one of the largest manufacturers of graphics card add-in boards, has announced that the company will stop making NVIDIA video cards based on NVIDIA’s next-generation of GPUs and won’t be immediately switching to AMD or Intel.
As a result, NVIDIA is losing its largest add-in board (AIB) in North America, and the broader North American video card market is losing one of its biggest and best-known vendors in this segment.
The development comes at a time when the financial outlook is bleak in the sector post-Ethereum Merge and “mistreatment” from its partner NVIDIA. The company spokesperson said in a statement, “EVGA will not carry the next-generation graphics cards. It will continue to support the existing current-generation products. EVGA will continue to provide the current-generation products and is committed to our customers and will continue to offer sales and support on the current lineup.”
For those who are unaware, while NVIDIA and AMD design the GPU that sits on the board, the actual card itself that slots into a computer are built by third parties such as EVGA, ASUS, MSI, and Gigabyte. This is done to separate the low-margin business from the high-margin business of designing the actual chips.
EVGA notes that the AIB margins have been slowly shrinking over the past couple of decades, which reportedly have fallen from 25% in 2000 to 10% in 2015, and finally an estimated 5% this year. Meanwhile, as NVIDIA has slowly ramped up its own efforts to directly sell its Founders Edition (reference) video cards, AIBs like EVGA have been put in a position of directly competing with their partner-turned-supplier.
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