Monitor/HDMI audio

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dkronie

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I recently upgraded my Graphics card (Nvidia 650) but the card only has hdmi and dvi
I plugged in my hdmi cable and all on-board sound was disabled and had to plug my headphones (Sennheiser hd202) into my monitor (Dell)
I was surprised the monitor/hdmi sound is definitely a step up from the on-board sound card
Use pc for mostly the odd game or listening to music when working

Question:
Does my monitor have a dac , I assume the hdmi is digital only?
If a monitor is a step up from on-board will a dedicated card make a big difference?
If yes, the only available port I have is a pci-e (4x) port, it looks like the pci-e (16x) but white and not blue, will any sound card fit this port or should I look at external soundcards/dac/headphone amp
 

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