EVGA - Long-Time NVIDIA Partner - Ending Graphics Card Production

[drakonas777]

Michael for some reasons didn't post the video which broke the news.

To me it felt like the decision of a single man, the CEO, based on his own mismanagement of two crypto mining crashes over the past five years and his own personal thoughts/ideas/etc not even necessarily shared by the rest of the staff.

Also some of his statements are borderline crazy: I now cannot find the exact timestamps but he claims the company sells RTX 3080/3090 cards at a loss. Sorry, I do not believe this shit. The chip and GDDR6X cost at the most $500 and you're selling the cards at well over $1000 and you don't make profits? That's lunacy.

Yeah, exactly. It felt like for you, because you are operating on your feelings instead facts LOL

It's funny how you are regularly criticizing others regarding conspiracy theories/speculations and yet you do exactly the same. You have no fucking idea how much the EVGA videocard BOM is, because you don't work there.

Instead constructive discussing we getting you defending 300 bil corporation. Again.

[coder]

You have no fucking idea how much the EVGA videocard BOM is, because you don't work there.

Actually, some people are pretty good at estimating the BOM of a GPU. I remember when Vega launched and some very knowledgeable outsiders figured they must've been selling them either at cost or at a slight loss, because they under-performed and therefore didn't slot into the intended price bracket. Crypto eventually saved the day, but that debacle is why I thought Koduri's departure from AMD might've been a "mutual decision".

I wish I knew what was the price floor on a 3080 (uses the same chip as a 3090), because I'd buy one if they go low enough. Don't need it, but it's times like these I generally try to do my upgrades.

[drakonas777]

Actually, some people are pretty good at estimating the BOM of a GPU. I remember when Vega launched and some very knowledgeable outsiders figured they must've been selling them either at cost or at a slight loss, because they under-performed and therefore didn't slot into the intended price bracket. Crypto eventually saved the day, but that debacle is why I thought Koduri's departure from AMD might've been a "mutual decision".

I wish I knew what was the price floor on a 3080 (uses the same chip as a 3090), because I'd buy one if they go low enough. Don't need it, but it's times like these I generally try to do my upgrades.

Some people working in semicon industry and being aware of quantities/prices/relation and other nuances are one thing. Birdie pulling a number from his ass is another. And even the former ones won't give you precise number, because prices of components are quite dynamic.

[oiaohm]

Yeah, exactly. It felt like for you, because you are operating on your feelings instead facts LOL

It's funny how you are regularly criticizing others regarding conspiracy theories/speculations and yet you do exactly the same. You have no fucking idea how much the EVGA videocard BOM is, because you don't work there.

Instead constructive discussing we getting you defending 300 bil corporation. Again.

https://www.youtube.com/watch?v=4z9C4Aya-jE

Its been possible to ballpark the BOM costs from stock market balance sheets.

Different groups have run those numbers AIB don't get very big slice of the pie somewhere between 10 to 30% of the MSRP. Yes higher the model is lower the percentage the AIB gets out the NVIDIA MSRP.. This is really problem when you have seen Nvidia do direct from Nvidia card with discounts greater than this.

AIB not having very much margin is not great when you have having supply chain issues push up parts cost. Also the AIB has to get their marketing out of their 10 to 30% cut per card.

https://www.notebookcheck.net/Nvidia-finally-offers-generous-discounts-for-its-RTX-3000-cards-following-disappointing-financial-quarter-results.639771.0.html

https://nvidianews.nvidia.com/news/nvidia-announces-preliminary-financial-resultsfor-second-quarter-fiscal-2023

Nvidia balance sheet is looking like a train wreck from the crypto bear market on GPU sales. Yes we have the crypto bull market for GPU hangover right now. Where tons of cards are being dropped into the second hard market and now Nvidia has get cards back to the price PC gamers and the like will in fact buy.

Of course some AIB are going to be caught out from spending too much on cooler development or board development. Also Nvidia is not going to want to discount already sold silicon that much either because that will make their already horrible bottom line at the moment even worse.

EVGA not making GPU at the moment kind of make sense. Early of the 40 series the market is most likely still going to be flooded by second hand mining gpus and possible still flooded with 30 series cards that did not sell.

One thing EVGA gains by breaking off their deal with Nvidia now is getting to clear their 30 series cards. Remember while still AIB partner Nvidia could be attempt to offload their remaining stocks of 30 series silicon on them.

The nightmare here is GPU demand has just dropped a lot. Crypto market was sucking up lots of cards and they are fairly much stopping..

Time will tell if EVGA was smart to get out now or not. Next 8 to 12 months we could see some AIB partners of Nvidia bite the wall due to being stuck with too much inventory.

Boom and busts are nasty. GPU market had boom its just bust the fall out has not fully landed yet. Fall out is already showing in Nvidia profit numbers and its not a full pace yet.

[user1]

Yeah, exactly. It felt like for you, because you are operating on your feelings instead facts LOL

It's funny how you are regularly criticizing others regarding conspiracy theories/speculations and yet you do exactly the same. You have no fucking idea how much the EVGA videocard BOM is, because you don't work there.

Instead constructive discussing we getting you defending 300 bil corporation. Again.

After my last discussion with him, I'm now convinced more than ever that he's the biggest Nvidia fanboy and shill I've ever met. He goes on and makes an excuse to pretty much every single action Nvidia does, even when the action is obviously wrong and anti competitive for any person with common sense. And then he tries to prove as hard as humanly possible that he "does not defend Nvidia". It's an ugly circus of cognitive dissonance and mental gymnastics.

Btw, Birdie, I know you BL'd me, but if you're reading this, I researched that HWU controversy a bit more, and it doesn't seem HWU even broke the review guidlines in that specific review. After the backlash from the community and other tech reviewers, Nvidia even made a U turn regarding their decision to ban HWU from sending GPU's and wrote them an apology letter.
So next time, why don't you at least research stuff a bit better if you want to shill for your beloved corp. Otherwise stop lying and STFU.

[drakonas777]

Problem is that AIB margins of consumer videocards are pretty low, which means calculating some rough estimate / ballpark value of BoM may be inaccurate enough to make an argument regarding profitability invalid. Also, BoM is just one factor, we should also include R&D, Support etc.

I'm not saying it's impossible to calculate BoM which is reasonably accurate. I'm saying that birdie gave a number without any calculations purely from his intuition to make an argument alongside speculations.

[drakonas777]

After my last discussion with him, I'm now convinced more than ever that he's the biggest Nvidia fanboy and shill I've ever met. He goes on and makes an excuse to pretty much every single action Nvidia does, even when the action is obviously wrong and anti competitive for any person with common sense. And then he tries to prove as hard as humanly possible that he "does not defend Nvidia". It's an ugly circus of cognitive dissonance and mental gymnastics.

He is definitely biased towards NVIDIA and Intel. He might be a fanboy, but from my subjective point of view I think he is angry at AMD because AMD is not as budget and cost effective as it used to be, he despises the idea of AMD becoming a premium brand I guess LOL

[user1]

He is definitely biased towards NVIDIA and Intel. He might be a fanboy, but from my subjective point of view I think he is angry at AMD because AMD is not as budget and cost effective as it used to be, he despises the idea of AMD becoming a premium brand I guess LOL

I mean, I've seen him criticize the Zen 3 50 dollar price increase (and rightly so), but nah, I really don't think that's the reason because that's too recent. Idk about his attitude to Intel, but he had this Nvidia bias since like forever.

[wdb974]

Tell me more.

Simply put, a naive decision by Unwinder (trusted businesses too much), but a major act of malevolence from EVGA regardlesss: https://www.guru3d.com/news-story/ev...isionx-15.html

[oiaohm]

Problem is that AIB margins of consumer videocards are pretty low, which means calculating some rough estimate / ballpark value of BoM may be inaccurate enough to make an argument regarding profitability invalid. Also, BoM is just one factor, we should also include R&D, Support etc.

I'm not saying it's impossible to calculate BoM which is reasonably accurate. I'm saying that birdie gave a number without any calculations purely from his intuition to make an argument alongside speculations.

The rough ballpark BoM that comes from company reporting balance sheets they have to provide do take into account R&D, Support and so on costs. Yes ball park BoM from company balance sheets are horrible rough. But are very good at get close on the profit per unit and who is getting that profit.

Its really horrible for the AIB they sell a 1500 dollar card if they have to sell it at MSRP that can be only 150 dollars per card to cover all their work. Nvidia likes having a 60%+ profit after costs they are unhappy they are at 40-50% at the moment.

Its the rough ballpark BoM from company balance sheets that show how bad AIB Margins are. There is more than one rough estimate/ballpark value method. The ballpark BoM method what you do from balance sheets is fairly much worst possible case as R&D, Support.... are all added to the BoM value.

Yes some AIB you get more data out their reports like the number of cards they have sold in year.

This is more of question what kind of error do you care that the BOM value has. If you are just look at profit margins per unit a BOM that high because R&D, Support and is include as a build cost is not a problem because you care about removing the build cost and other costs to see the profit and who getting the profit.

AIB if they were getting 50% profit they would be really happy its kind hard when Nvidia is want that themselves out the MSRP price.

Also Nvidia GPU chips sell to AIB as upfront payment. This is why Nvidia playing with MSRP is really bad. Nvidia will do hey we will give you a discount on the new batch you ordered for the prior batch that you paid too much for because we dropped the MSRP. See how that that Nvidia handling is fine in boom market for GPU where you are selling out all your GPUs but is very bad in a bear market where you have inventory stacking up.

Nvidia model to AIB is setup for a booming market and we now have a bear market for GPUs. This is not the first time Nvidia badly handled GPU bear markets. GPU bear markets put lot of cost pressures on AIBs. The other reality of bear market is the GPU Nvidia was trying to get EVGA to buy its possible that no other AIB will want them because of the GPU bear market at the moment..