Former EVGA Employee Reveals Strategy to Maintain GPU Allocation Amid NVIDIA Competition

A former EVGA employee, Brendon Ray Hedrick, who worked at the company from 2016 to 2019, has revealed that EVGA believed it had to sell at least one GeForce card at NVIDIA’s advertised starting price, even at a loss, to protect its GPU allocation from NVIDIA. According to Hedrick’s personal essay, EVGA’s strategy was to maintain a loss leader at NVIDIA’s MSRP to prevent NVIDIA from reducing its GPU allocation. This practice was particularly relevant when NVIDIA introduced its Founders Edition cards, which competed directly with EVGA’s products. Hedrick noted that EVGA historically differentiated itself with high-end features such as large VRMs, custom PCBs, and elaborate coolers, but NVIDIA’s improved reference designs and clock management made these premium features less critical for everyday gaming performance. The tension between EVGA and NVIDIA grew over time, with EVGA’s GPU business accounting for nearly 80% of its revenue by 2022, yet margins were reportedly as low as 5% in some estimates. Hedrick’s account suggests that the tensions leading to EVGA’s eventual exit from the GPU business in 2022 had been building for years, well before the company publicly severed ties with NVIDIA. The article also references EVGA CEO Andrew Han’s complaints in 2022 about NVIDIA withholding important pricing and product information from partners until shortly before public launch announcements, making it difficult to plan products and margins. This situation highlights the complex relationship between GPU manufacturers and their suppliers, where maintaining allocation and competitive positioning can be as crucial as product innovation and pricing strategy.