Is EVGA going out of business? The industry leader in PC components, EVGA, is exiting the graphics card market. The business said in a post on its community site that it would no longer produce Nvidia graphics cards. But it would continue to market and support “the existing generation of devices.” According to Gamers Nexus, the company doesn’t intend to produce AMD or Intel graphics cards.
EVGA will continue operating and providing its other items for sale. But it will only diversify into other markets and look for new graphics card alliances with companies like Intel or AMD.
EVGA is widely perceived as the manufacturer of the best Nvidia GPUs worldwide. The area it once held in the GPU market has now clearly been left empty. Why did this happen? Let’s view this in detail in this article.
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Did EVGA stop making GPUs?
EVGA is the best-known Nvidia third-party GPU producer. The company is well known for its high-end RTX and GTX graphics cards, motherboards, battery packs, coolers, and other accessories. However, the almost 20-year cooperation between Nvidia and EVGA is now terminated. EVGA not only wants to discontinue producing Nvidia GPUs, but it also has yet to make any further plans to do so. It’s not a smooth breakup, either.
This is not a business decision. It is a decision based on principles, according to EVGA in a statement to Gamers Nexus, which broke the news first. According to EVGA, Nvidia limits the rates GPUs can be set at and cuts GPU prices without prior notice. Also, it keeps partners in the dark about upcoming products.
Nvidia CEO Jensen Huang occasionally questions why these folks [EVGA and other Nvidia partners] are earning profit “when they’re not doing enough,” according to a company representative who talked with Gamers Nexus.
One of the core problems is that Nvidia distributes its own Founder’s Edition models at a significant discount compared to those from partners is one of the core problems. To compete with Nvidia, EVGA is said to lose hundreds of dollars on every RTX 3080, 3090, and 3090 Ti it delivers. However, that number takes production into account.
Is EVGA still in business?
Even though its graphics division generates 78% of EVGA’s income, the company promises to keep running its other businesses. The business’s next venture is into power supplies. Although it only contributes 20% of EVGA’s total sales, it has four times the graphics division’s profit margin. Even though EVGA specifically disputed that there would be any layoffs, eliminating the bulk of its income is still an issue.
Additionally, Han disputed that he planned to sell EVGA. The corporation is in good financial shape. The CEO also wanted to maintain EVGA’s image by selling it to a business. It could be motivated by financial gain.
EVGA might collaborate with AMD or Intel to keep its AIB GPU business alive. The firm has made it explicit that it will no longer produce any GPUs. Gamers Nexus theories that, like his personal reasons for ending the relationship with Nvidia, the CEO of EVGA may have personal motives for refusing to seek a collaboration with Nvidia’s rivals.
What will EVGA do now?
Power supplies remain EVGA’s most significant market of operation. EVGA’s PSUs are claimed to have a far more substantial profit margin than their GPUs. Thus, they are a long-term investment for the business.PSUs are expected to replace GPUs as the foundation upon which all the others at EVGA are built. It’s because, without the GPU business, PSUs come in as a close second in income.
Where EVGA once thrived, there is now a significant gap in the market and GPU availability for Nvidia GPUs. Other Nvidia AIB suppliers will soon purchase EVGA’s portion of the GPU supplies from Nvidia. But with EVGA’s exit, they might be reconsidering their alliances with Nvidia.
In addition to the GPU industry, EVGA should continue to dominate the liquid cooling, motherboard, and power supply industries. In these fields, they are already well-known to excel. However, it is still being determined how those sectors will go in the years ahead with this significant change to their industry.
Gamers Nexus was informed by EVGA that it would not be closing its doors and that it planned to continue operating. However, the company will have to reduce its size or embark on significant project expansion. One of the top NVIDIA licensed partners in sales across North America is the first item the business mentions in the “about” portion of its website.
In theory, the loss of GPU income and staff should not impact those areas of EVGA. But there may be longer-term consequences than we now expect. It will only become apparent with time.
Conclusion
A comment request was answered after some time by EVGA, established in 1999. However, according to Gamers Nexus, the business predicts selling all of its RTX 3000 GPUs that are still in stock before the end of 2022. Even if it plans to scale back, EVGA intends to keep operating and continue selling other PC component goods. According to Gamers Nexus, sales of video cards account for 78% of EVGA’s income.
EVGA persists: “EVGA is devoted to its clients and will continue to provide sales and support on the current portfolio” in its forum thread. Additionally, EVGA would like to thank our wonderful community for its long history of love and passion for EVGA graphics cards. Additionally, EVGA does not intend to produce AMD or Intel GPUs.
