Slide 1: Investor Presentation Q1 FY24
Investor Presentation Q1 FY24 May 30, 2023
Slide 2: Forward-looking statements
Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our financial position; our markets, market opportunity, demand and growth drivers; Gaming and Professional Visualization platforms emerging from channel inve
Slide 3: Content
Content • Q1 FY24 Earnings Summary • Key Announcements This Quarter • NVIDIA Overview • Financials • Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 4: Q1 FY24 Earnings Summary
Q1 FY24 Earnings Summary
Slide 5: Highlights
Highlights • Strong Q/Q growth was driven by record Data Center revenue; Gaming and Professional Visualization platforms emerging from channel inventory corrections • Total revenue down 13% Y/Y to $7.19B, well above outlook of $6.50B +/- 2% • Data Center up 14% Y/Y to $4.28B • Gaming down 38% Y/Y to
Slide 6: Q1 FY24 Financial Summary
Q1 FY24 Financial Summary GAAP Non-GAAP 9,500 Revenue($M) Non-GAAP GM 100.0% Q1 FY24 Y/Y Q/Q Q1 FY24 Y/Y Q/Q 8,500 $8,288 90.0% 7,500 Revenue $7,192 -13% +19% $7,192 -13% +19% $7,192 $6,704 80.0% 6,500 $6,051 Gross Margin 64.6% -0.9 pts +1.3 pts 66.8% -0.3 pts +0.7 pts $5,931 66.8% 5,500 70.0% 67.1%
Slide 7: Data Center
Data Center 14% Y/Y and Highlights 18% Q/Q • Started shipping DGX H100 – our Hopper-generation AI system – $4,284 which customers can deploy on-prem $3,750 $3,806 $3,833 • Generative AI is driving a step-function increase in training and $3,616 inference workloads • Strong demand in networking at bo
Slide 8: Gaming
Gaming Highlights • Believe channel inventory corrections are behind us $3,620 • GeForce RTX 40 Series GPU laptops are off to a strong start • Ramped the RTX 4070 in desktop, joining previously launched RTX 4090, 4080 and 4070Ti GPUs 38% Y/Y • Generative AI will be transformative to gaming and conte
Slide 9: Professional Visualization
Professional Visualization Highlights • Sequential growth was driven by stronger workstation demand $622 across both mobile and desktop form factors • Strength in key verticals such as public sector, healthcare, and automotive $496 • Believe the channel inventory correction is behind us 31% Q/Q • Ra
Slide 10: Automotive
Automotive Highlights 114% Y/Y and • Strong Y/Y growth was driven by the ramp of the NVIDIA DRIVE 1% Q/Q Orin across a number of new energy vehicles $294 $296 • Q/Q growth moderated as some NEV customers in China are adjusting their production schedules to reflect slower-than- $251 expected demand g
Slide 11: Sources & Uses of Cash
Sources & Uses of Cash Highlights 68% Y/Y and • Y/Y increase reflects lower inventory prepayments and changes in 29% Q/Q inventory, partially offset by lower revenue $2,911 • Q/Q increase was driven by higher revenue • Returned $99M to shareholders in the form of cash dividends $2,249 • Invested $26
Slide 12: Q2 FY24 Outlook
Q2 FY24 Outlook $11.0 billion, plus or minus 2% Revenue Expect q/q growth to largely be driven by Data Center, reflecting a steep increase in demand related to generative AI and large language models. This demand has extended our Data Center visibility out a few quarters, and we have procured substa
Slide 13: Key Announcements This Quarter
Key Announcements This Quarter
Slide 14: H100 Gets Broad Adoption by CSPs; DGX H100 Now Shipping
H100 Gets Broad Adoption by CSPs and AI Pioneers; DGX H100 Now Shipping • Multiple cloud service providers (CSPs) announced the availability of H100 on their platforms • Private previews at Microsoft Azure, Oracle Cloud Infrastructure, Google Cloud and upcoming offering at AWS • GPU-specialized clou
Slide 15: New NVIDIA Inference Platforms for LLMs and Generative AI
New NVIDIA Inference Platforms for Large Language Models and Generative AI Workloads • Four new inference platforms optimized for generative AI applications, combining NVIDIA’s inference software with the NVIDIA Ada, Hopper and Grace Hopper processors • NVIDIA L4 for AI Video • NVIDIA L40 for Image
Slide 16: Google Cloud Adopts NVIDIA L4 Inference Platform
Google Cloud Adopts NVIDIA L4 Inference Platform for Generative AI and Other Major Workloads • Google Cloud is the first CSP to adopt L4 with the launch of its new G2 virtual machines, available in public preview • Workloads that Google Cloud will accelerate on L4 include: • Generative AI models for
Slide 17: NVIDIA Launches DGX Cloud
NVIDIA Launches DGX Cloud • NVIDIA DGX Cloud is an AI supercomputing service that gives enterprises access to the infrastructure and software needed to train and deploy advanced models for generative AI and other groundbreaking applications • Each DGX Cloud instance starts at $36,999 per month and i
Slide 18: NVIDIA AI Foundations – Cloud Services For Generative AI
NVIDIA AI Foundations – Cloud Services For Generative AI • NVIDIA AI Foundations are cloud services that enable businesses to build, refine and operate custom LLMs and generative AI models trained with their own proprietary data and created for their unique domain-specific tasks • Services span lang
Slide 19: NVIDIA Omniverse Cloud to Power Industrial Digitalization
NVIDIA Omniverse Cloud to Power Industrial Digitalization • NVIDIA Omniverse Cloud is a fully managed cloud service that enables companies to digitalize their workflows from design and engineering to smart factory to marketing • Omniverse Cloud gives enterprises access to the full suite of Omniverse
Slide 20: NVIDIA cuLitho Software for Computational Lithography
NVIDIA cuLitho Software for Computational Lithography • Computational lithography is the largest workload in chip design and manufacturing, consuming tens of billions of CPU hours annually • The new NVIDIA cuLitho software library accelerates computational lithography by over 40X • cuLitho would ena
Slide 21: NVIDIA and ServiceNow Partner on Generative AI
NVIDIA and ServiceNow Partner to Build Generative AI Across Enterprise IT • Partnership to develop enterprise-grade generative AI capabilities that can transform business processes with faster, more intelligent workflow automation • Using NVIDIA software, services and accelerated infrastructure, Ser
Slide 22: NVIDIA GeForce RTX 4060 and 4060 Ti
NVIDIA GeForce RTX 4060 and 4060 Ti • New GeForce RTX 4060 and 4060 Ti GPUs deliver RTX technology and Ada Lovelace architecture to core gamers, starting at $299 • Include DLSS 3 and third-generation RTX technologies • For the first time, provide 2x the performance of the latest gaming consoles at m
Slide 23: NVIDIA Grace Drives New Arm Supercomputers
NVIDIA Grace Drives Wave of New Energy-Efficient Arm Supercomputers • Announced the Isambard 3 supercomputer at the Bristol & Bath Science Park in the U.K., the latest energy-efficient supercomputer based on Arm CPUs • Isambard 3 will feature 384 NVIDIA Grace CPU Superchips to power medical and scie
Slide 24: Dell and NVIDIA Introduce Project Helix
Dell Technologies and NVIDIA Introduce Project Helix for Secure, On-Premises Generative AI • Joint initiative between Dell and NVIDIA to make it easier for businesses to build and use trustworthy generative AI models on premises • Quickly and securely deliver better customer service, market intellig
Slide 25: NVIDIA Collaborates With Microsoft on Enterprise Generative AI
NVIDIA Collaborates With Microsoft to Accelerate Enterprise-Ready Generative AI • NVIDIA is integrating its NVIDIA AI Enterprise software into Microsoft’s Azure Machine Learning to help enterprises accelerate their AI initiatives • NVIDIA AI Enterprise integration with Azure Machine Learning is avai
Slide 26: NVIDIA Overview
NVIDIA Overview
Slide 27: NVIDIA pioneered accelerated computing
NVIDIA pioneered accelerated computing to help solve impactful challenges classical computers cannot. A quarter of a century in the making, NVIDIA accelerated computing is broadly recognized as the way to advance computing as Moore’s law ends and AI lifts off. NVIDIA’s platform is installed in sever
Slide 28: Generative AI Unlocks New Opportunities
Generative AI Unlocks New Opportunities TEXT GENERATION TRANSLATION CODING How has NVIDIA contributed to the advancement of AI? Summarization Translating Wikipedia Dynamic Code Commenting Real-Time Marketing Function GPT-3 NLLB-200 Metaverse CODEX Copy Generation Translation NVIDIA has pioneered the
Slide 29: NVIDIA's Expanding Accelerated Computing Ecosystem
NVIDIA’s Expanding Accelerated Computing Ecosystem Developers CUDA Downloads* Acceleration 4M 40M Libraries 1.8M 20M 2020 2023 2020 2023 *Cumulative GPU-Accelerated AI Startups Applications 300 Libraries 400 AI Models 14K 3,000 700 6K 100 Updated in the Last Year 2020 2023 2020 2023
Slide 30: Training & Inference — One Architecture
Training & Inference — One Architecture Cloud | On-Prem | Edge TRAINING INFERENCE TRAINING AI FACTORIES IN THE DATA CENTER AT THE EDGE NVIDIA L40 AI FACTORIES Image Generation IGX Industrial-Grade System for Healthcare, Logistics, NVIDIA L4 Manufacturing AI Video NVIDIA H100 NVL Large Language Model
Slide 31: What Is Accelerated Computing?
What Is Accelerated Computing? A full-stack approach: silicon, systems, software Amdahl’s law: The overall system speed-up (S) gained by optimizing a single part of a system by a factor (s) is limited by the proportion of execution time of that part (p). Not just a superfast chip – accelerated compu
Slide 32: Why Accelerated Computing?
Why Accelerated Computing? Advancing computing in the post-Moore’s Law era 109 Trillions of Operations per Second (TOPS) 108 Accelerated computing is needed to tackle the most impactful opportunities of our time—like AI, climate 107 GPU-Computing perf 1000X simulation, drug discovery, ray tracing, a
Slide 33: AI Is the Greatest Technology Force of Our Time
AI Is the Greatest Technology Force of Our Time Data centers across industries will become AI factories AI has fundamentally changed what software can make and how you make software. Companies are processing & refining their data, making AI software—becoming intelligence manufacturers. Their data ce
Slide 34: Building and Operating Metaverse Applications Is the Next Wave
Building and Operating Metaverse Applications Is the Next Wave NVIDIA Omniverse—Runs on NVIDIA OVX servers | RTX workstations | Enterprise software | Cloud services NVIDIA Omniverse is a software platform for building and operating metaverse applications. Our initial focus is on industrial metaverse
Slide 35: NVIDIA's Accelerated Computing Platform
NVIDIA’s Accelerated Computing Platform Full-stack innovation across silicon, systems and software AI APPLICATION FRAMEWORK With nearly three decades of a singular focus, NVIDIA is expert at accelerating software and scaling compute by a Million-X, going well beyond Moore’s law. PLATFORMS NVIDIA HPC
Slide 36: NVIDIA's Multi-Sided Platform and Flywheel
NVIDIA’s Multi-Sided Platform and Flywheel NVIDIA is valued by every stakeholder in the ecosystem: 3.5 Million • For developers – NVIDIA’s One Architecture and large Full-Stack Developers installed base give developer’s software the best Expertise and Scale Wealth of Accelerated performance and grea
Slide 37: Full-Stack & Data Center Scale Acceleration
Full-Stack & Data Center Scale Acceleration Drive Significant Cost Savings and Workload Scaling Classical Computing—92 CPU-only servers Accelerated Computing—1 NVIDIA DGX A100 $3.3M (including switches, cables, racks) $220,000 DGX and $100,000 NVIDIA AI software Application Application Re-Engineered
Slide 38: NVIDIA Software and Services
NVIDIA Software and Services Enabling the world’s enterprises to revolutionize industries with AI NVIDIA-hosted cloud service for training Large Language NVIDIA-hosted cloud service for training and deploying NVIDIA-hosted cloud service for building generative Models to perform specific task s— e.g.
Slide 39: NVIDIA Cloud Services
NVIDIA Cloud Services Engaging with customers at every layer CUSTOM AI MODEL MAKING SERVICE NEMO PICASSO BIONEMO PLATFORM-AS-A-SERVICE NVIDIA NVIDIA AI Omniverse AI INFRASTRUCTURE-AS-A-SERVICE ON PREM DGX DGX Cloud MULTI HYBRID CLOUD CLOUD
Slide 40: NVIDIA's Cloud Business Model
NVIDIA’s Cloud Business Model ENTERPRISE CUSTOMERS Consumption/Value AI-as-a-Service Based Revenue NVIDIA CLOUD SERVICES NVIDIA AI AI FOUNDATIONS NVIDIA Omniverse NeMo | Picasso | BioNeMo DGX CLOUD Hosting Service Consumption Based Cost PARTNER CLOUD SERVICE PROVIDERS
Slide 41: NVIDIA Go-to-Market Across Cloud and On-Premises
NVIDIA Go-to-Market Across Cloud and On-Premises Reaching customers everywhere CLOUD ON-PREM DGX Cloud NeMo | Picasso | BioNeMo DGX PARTNERS HGX INFERENCE EGX AGX IGX
Slide 42: Giant Market Opportunity
Giant Market Opportunity Gaming & Metaverse Financial Services Healthcare Logistics Manufacturing Retail Transportation Gaming Over 3B gamers and creators, a quarter of them spending over $1 Trillion Opportunity $100/year for GPUs in desktops, laptops, cloud or consoles NVIDIA AI Omniverse NVIDIA AI
Slide 43: Driving Strong & Profitable Growth
Driving Strong & Profitable Growth $15,000 Operating Income (Non-GAAP, $M) Operating Margin (Non-GAAP) 60% Revenue ($M) $12,000 $12,690 50% $9,040 $9,000 $26,914 $26,974 $6,803 47% $6,000 $4,407 41% 40% $3,735 $3,000 38% 34% 34% $0 30% FY19 FY20 FY21 FY22 FY23 $16,675 Fiscal year ends in January. Re
Slide 44: NVIDIA Gross Margins Reflect Value of Acceleration
NVIDIA Gross Margins Reflect Value of Acceleration Gross Profit (Non-GAAP, $M) Gross Margin (Non-GAAP) Accelerated computing requires full-stack and data center-scale innovation across silicon, systems, $18,000 $17,969 69% algorithms and applications. 67% $15,965 67% 66% Significant expertise and ef
Slide 45: Strong Cash Flow Generation
Strong Cash Flow Generation Free Cash Flow (Non-GAAP) Capital Allocation $8.0B Share Repurchase Resumed Buybacks in Q1 FY 2023 $10.0B repurchased in FY23; $7.2B Remaining Authorization Through Dec 2023 as of Apr 30, 2023 $4.7B $4.3B $3.8B Dividend $3.1B $398M in FY 2023 Plan to Maintain1 Strategic I
Slide 46: Our Market Platforms at a Glance
Our Market Platforms at a Glance Data Center Gaming Professional Visualization Automotive 56% of FY23 revenue 33% of FY23 revenue 6% of FY23 revenue 3% of FY23 revenue FY23 Revenue $15.0B FY23 Revenue $9.1B FY23 Revenue $1.5B FY23 Revenue $0.9B 5-yr CAGR 51% 5-yr CAGR 10% 5-yr CAGR 11% 5-yr CAGR 10%
Slide 47: Data Center
Data Center The leading computing platform for AI, HPC & graphics Revenue ($M) $15,005 Leader in AI & HPC 51% 5-YR CAGR #1 in AI training and inference Through FY23 Used by all hyperscale & major cloud computing providers and 35,000 organizations $10,613 Powers 74% of the TOP500 supercomputers $6,69
Slide 48: Modern AI is a Data Center Scale Computing Workload
Modern AI is a Data Center Scale Computing Workload Data centers are becoming AI factories: data as input, intelligence as output AI Training Computational Requirements Fueling Giant-Scale AI Infrastructure NVIDIA compute & networking GPU | DPU | CPU 1010 All AI Models Excluding Transformers: 8x / 2
Slide 49: Wave of New Data Center Products
Wave of New Data Center Products Ramping new architectures for GPU, CPU and DPU H100 GPU Bluefield-3 DPU Grace CPU Superchip World’s Most Advanced Chip First 400 Gb/s DPU High Performance CPU for HPC and AI 80B Transistors Line-rate processing of software-defined 144 Cores | 740 SPECrate®2017_int_ba
Slide 50: Gaming
Gaming GeForce—the world’s largest gaming platform Revenue ($M) Leader in PC Gaming $12,462 10% 5-YR CAGR Strong #1 market position with over 80% share Through FY23 15 of the Top 15 most popular GPUs on Steam Leading performance & innovation $9,067 200M+ gamers on GeForce $7,759 $6,246 $5,518 Growth
Slide 51: Strong Gaming Fundamentals
Strong Gaming Fundamentals New generation, more gamers 77% 81% 400+ RTX Games and Applications 60% #1 #1 #1 #1 42% 3.1B Video App Photo App 3D App Broadcast App 2.3B PC Gamers Total Gamers Boomers Gen X Millennials Gen Z 2:30 4:25 6:50 7:20 Expanding reach to Hrs/Wk Hrs/Wk Hrs/Wk Hrs/Wk 110M Creator
Slide 52: Professional Visualization
Professional Visualization Workstation graphics Revenue ($M) Leader in Workstation Graphics 11% 5-YR CAGR 90%+ market share in graphics Through FY23 $2,111 for workstations 45M Designers and Creators Strong software ecosystem with over 100 $1,544 supported applications $1,212 $1,130 $1,053 Growth Dr
Slide 53: Automotive
Automotive Autonomous Vehicles (AV) & AI Cockpit Revenue ($M) Leader in Autonomous Driving 10% 5-YR CAGR Historical revenue driven largely by infotainment Through FY23 Future growth primarily fueled by NVIDIA DRIVE, our AV and AI cockpit platform with full software stack Over $14B design win pipelin
Slide 54: Growing NVIDIA DRIVE Pipeline
Growing NVIDIA DRIVE Pipeline $14B design win pipeline — 6 year horizon NETA 2023
Slide 55: Financials
cy ag 0 ro © to ie
Slide 56: Annual Cash & Cash Flow Metrics
Annual Cash & Cash Flow Metrics Operating Income (Non-GAAP) — $M Operating Cash Flow — $M 12,690 9,108 9,040 5,822 5,641 6,803 4,761 3,743 4,407 3,735 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Free Cash Flow (Non-GAAP) — $M Cash Balance — $M 8,049 21,208 4,677 13,296 4,272 10,897 11,561 3,75
Slide 57: Corporate Responsibility
Corporate Responsibility Environmentally Conscious A Place For People To Do Their Life’s Work Management Time Magazine’s 100 Most Influential Companies Fast Company’s Best Workplaces for By FY26, engage manufacturing suppliers comprising at least Innovators 67% of NVIDIA’s scope 3 category 1 GHG emi
Slide 58: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 59: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures Acquisition-Related Stock-Based IP-Related Other Tax Impact of Non-GAAP and Other Costs Compensation GAAP Cost (C) Adjustments (A) (B) Q1 FY24 $4,802 (119) (27) (8) — — $4,648 Gross margin ($ in million) 66.8% (1.7) (0.4) (0.1) — — 64.6% Operatin
Slide 60: Reconciliation of Non-GAAP to GAAP Financial Measures (contd)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd) Acquisition-Related Stock-Based and Other Costs Compensation IP-Related Gross Margin Non-GAAP (A) (B) Cost GAAP Q1 FY2023 67.1% (1.1) (0.5) — 65.5% Q2 FY2023 45.9% (1.8) (0.6) — 43.5% Q3 FY2023 56.1% (2.0) (0.5) — 53.6% Q4 FY2023 66.1% (2
Slide 61: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Acquisition-Related Stock-Based Gross Margin and Other Costs Compensation ($ in Millions & Margin Percentage) Non-GAAP (A) (B) IP-Related Costs GAAP $7,233 — (27) (35) $7,171 FY 2019 61.7% — (0.2) (0.3) 61.2% $6,821 — (39) (14) $6,768 FY
Slide 62: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Acquisition-Related Stock-Based Margin Acquisition IP-Related Other Non-GAAP and Other Costs Compensation GAAP ($ in Millions & Termination Cost Cost (C) (A) (B) Margin Percentage) $4,407 — (2) (557) (35) (9) $3,804 FY 2019 37.
Slide 63: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Principal Payments Purchases Related to Net Cash on Property ($ in Millions) Free Cash Flow Property and Equipment Provided by and Equipment and and Intangible Assets Operating Activities Intangible Assets FY 2019 $3,143 600 — $3,743 FY
Slide 64: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures ($ in Millions) Q2 FY24 Outlook Non-GAAP gross margin 70.0% Impact of stock-based compensation expense, acquisition-related costs, and other costs (1.4%) GAAP gross margin 68.6% Non-GAAP operating expenses $1,900 Impact of stock-based compensatio
Slide 65: NVIDIA
@A NVIDIA.