Slide 1: Investor Presentation Q1 FY2023
INVESTOR PRESENTATION Q1 FY2023 MAY 31, 2022
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: the performance, specifications, benefits, impact and availability of our products and technologies; launching multiple new GPU, CPU, DPU, and SOC products ac
Slide 3: Content
CONTENT Q1 FY23 Earnings Summary Key Announcements This Quarter NVIDIA Overview Financials Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 4: Q1 FY23 Earnings Summary
Q1 FY23 EARNINGS SUMMARY
Slide 5: Highlights
HIGHLIGHTS ▪ Record total, Gaming and Data Center revenue ▪ Total revenue up 46% y/y to $8.29B, ahead of outlook of $8.10B +/- 2% ▪ Data Center up 83% y/y to a record $3.75B; Gaming up 31% y/y to a record $3.62B ▪ Across our businesses, launching multiple new GPU, CPU, DPU, and SOC products over the
Slide 6: Q1 FY2023 Financial Summary
Q1 FY2023 FINANCIAL SUMMARY GAAP Non-GAAP $8,288 Q1 FY23 Y/Y Q/Q Q1 FY23 Y/Y Q/Q $7,643 $7,103 Revenue $8,288 +46% +8% $8,288 +46% +8% $6,507 $5,661 Gross Margin 65.5% +140 bps +10 bps 67.1% +90 bps +10 bps 67.0% 67.0% 67.1% 66.7% 66.2% Operating Income $1,868 -4% -37% $3,955 +55% +8% Net Income $1,
Slide 7: Data Center
DATA CENTER REVENUE ($M) HIGHLIGHTS 15% q/q and 83% y/y ▪ Revenue from hyperscale and cloud computing customers more $3,750 than doubled y/y, driven by strong demand for both external and internal workloads $3,263 ▪ Rising wave of customer innovation using large language $2,936 models that is drivin
Slide 8: Gaming
GAMING REVENUE ($M) HIGHLIGHTS 6% q/q and 31% y/y ▪ NVIDIA RTX has set a new standard for the industry; 250+ RTX- $3,620 optimized games and apps – double from last year $3,420 $3,221 ▪ Almost 1/3 of GeForce gaming GPU installed base now on RTX $3,061 $2,760 ▪ Channel inventory has nearly normalized
Slide 9: Professional Visualization
PROFESSIONAL VISUALIZATION REVENUE ($M) HIGHLIGHTS 67% y/y 3% q/q ▪ Strong y/y growth was supported by the NVIDIA RTX Ampere $643 $622 architecture product cycle $577 ▪ Enterprises continued to build out employees’ remote office $519 infrastructure to support hybrid work ▪ Omniverse Enterprise softw
Slide 10: Automotive
AUTOMOTIVE REVENUE ($M) HIGHLIGHTS 10% q/q ▪ DRIVE Orin SOC is now in production and kicks off a major 10% y/y product cycle, with auto customers ramping in Q2 and beyond $154 $152 ▪ Orin has great traction, with over 35 customer wins from $135 $138 automakers, truck makers and robotaxi companies $1
Slide 11: Sources & Uses of Cash
SOURCES & USES OF CASH Cash Flow from Operations ($M) HIGHLIGHTS Sequential decrease in cash flow from operations primarily reflects advanced payments on supply agreements $3,033 Increased and extended our share repurchase program to repurchase additional common stock up to a total of $15B $2,682 th
Slide 12: Q2 FY2023 Outlook
Q2 FY2023 OUTLOOK ▪ Revenue — $8.1 billion, plus or minus two percent ▪ Expect strong sequential growth in Data Center and Automotive to be more than offset by a sequential decline in Gaming ▪ Assumes an estimated reduction of approximately $500 million relating to Russia and China COVID lockdowns ▪
Slide 13: Key Announcements This Quarter
KEY ANNOUNCEMENTS THIS QUARTER
Slide 14: 60+ Updates to NVIDIA SDKs & CUDA-X Libraries
60+ UPDATES TO NVIDIA SDKS & CUDA-X LIBRARIES Opening New Science and Industries to Accelerated Computing ▪ At GTC Spring 2022, announced more than 60 updates to NVIDIA SDKs and CUDA-X libraries, including: ▪ RAPIDS for data science ▪ cuOpt for logistics optimization ▪ Maxine for reinventing communi
Slide 15: NVIDIA Hopper
NVIDIA HOPPER The Next Generation of Accelerated Computing ▪ The new NVIDIA Hopper architecture delivers an order of magnitude performance leap over its predecessor ▪ New NVIDIA H100 is the engine for the world’s AI infrastructure ▪ Built on TSMC 4N process ▪ New DPX instructions accelerate dynamic
Slide 16: NVIDIA DGX H100
NVIDIA DGX H100 World’s Most Advanced Enterprise AI Infrastructure ▪ New DGX H100, combined with new NVIDIA NVLink Switch System, can scale to run massive AI models with trillions of parameters ▪ Each DGX H100 provides 32 petaflops of AI performance at new FP8 precision — 6x more than the prior gene
Slide 17: NVIDIA Grace CPU Superchip
NVIDIA GRACE CPU SUPERCHIP NVIDIA’s First Discrete Data Center CPU ▪ The NVIDIA Grace CPU is designed for AI infrastructure and high-performance computing ▪ 144 Arm CPU cores packed in a single socket ▪ Comprises of two CPU chips connected, coherently, over NVLink-C2C ― a new high-speed, low-latency
Slide 18: Taiwan's Tech Titans Adopt First NVIDIA Grace CPU System Designs
TAIWAN’S TECH TITANS ADOPT FIRST NVIDIA GRACE CPU SYSTEM DESIGNS Taiwan’s leading computer makers are set to release the first wave of systems powered by the NVIDIA Grace CPU Superchip and Grace Hopper Superchip Wide range of workloads spanning digital Dozens of server models from ASUS, Foxconn Indu
Slide 19: NVIDIA Spectrum-4
NVIDIA SPECTRUM-4 The First 400Gbps End-to-End Hyperscale Networking Platform ▪ NVIDIA Spectrum-4 enables the level of networking performance and security needed for data center infrastructure at scale ▪ Platform consists of the NVIDIA Spectrum-4 switch family, NVIDIA ConnectX-7 SmartNIC, NVIDIA Blu
Slide 20: NVIDIA OVX
NVIDIA OVX Data-Center Scale Omniverse Computing System ▪ NVIDIA OVX is a new computing system for large-scale digital twins within NVIDIA Omniverse, a real-time physical accurate world and simulation 3D collaboration design platform ▪ OVX servers consist of 8 NVIDIA A40 GPUs, 3 NVIDIA ConnectX-6 Dx
Slide 21: NVIDIA Opens NVLink for Custom Silicon Integration
CUSTOMER IP NVIDIA OPENS NVLINK FOR CUSTOM CUSTOMER IP SILICON INTEGRATION Opens New World for Custom Chips and Systems ▪ NVIDIA NVLink-C2C is an ultra-fast chip-to-chip and die-to-die CPU GPU interconnect that will allow custom dies to coherently interconnect to NVIDIA GPUs, CPUs, DPUs, NICs and SO
Slide 22: Major Updates to NVIDIA AI Software Suite
MAJOR UPDATES TO NVIDIA AI SOFTWARE SUITE NVIDIA Riva for Speech AI and NVIDIA Merlin for Smart Recommendations Enter General Availability ▪ NVIDIA AI is comprised of key enabling SDKs and software tools for rapid deployment, management and scaling of AI workloads ▪ NVIDIA Riva for speech AI and NVI
Slide 23: New GeForce Gaming and Studio Laptops
NEW GEFORCE GAMING AND STUDIO LAPTOPS ▪ 180+ new NVIDIA-based laptops ▪ Up from 140 last year
Slide 24: NVIDIA Powering AV Revolution
NVIDIA POWERING AV REVOLUTION $11B Automotive Design Win Pipeline Over 6 Years 20 7 of 30 NEV of 10 Trucking NVIDIA’s AI compute platform adopted by: Software Revenue Share 8 30 of 10 Robotaxi of 30 AV Data Centers 6 Year Horizon
Slide 25: NVIDIA Overview
NVIDIA OVERVIEW
Slide 26: NVIDIA — A Computing Platform Company
NVIDIA — A COMPUTING PLATFORM COMPANY NVIDIA pioneered accelerated computing to help solve the most challenging computational problems. The approach is broadly recognized as the way to advance computing as Moore’s law ends and AI lifts off. NVIDIA’s platform is installed in several hundred million c
Slide 27: NVIDIA at a Glance
NVIDIA AT A GLANCE Accelerated Computing Pioneer BRIEF HISTORY REVENUE BY MARKET PLATFORM OEM & & Others Auto ProViz Data Center Gaming 1993: Founded by Jensen Huang, Chris Malachowsky, and Curtis Priem $26.9B 1999: IPO on NASDAQ at $12 (prior to 5 stock splits, now 48:1) 2001: Xbox win; fastest sem
Slide 28: Tremendous Market Forces Driving NVIDIA Growth
TREMENDOUS MARKET FORCES DRIVING NVIDIA GROWTH GAMING ARTIFICIAL DATA CENTER AI ON 5G AUTONOMOUS OMNIVERSE INTELLIGENCE SYSTEMS
Slide 29: Our Core Businesses
OUR CORE BUSINESSES GAMING DATA CENTER PROFESSIONAL VISUALIZATION AUTOMOTIVE 46% of FY22 Rev 40% of FY22 Rev 8% of FY22 Rev 2% of FY22 Rev FY22 REVENUE $12.5B, FY22 REVENUE OF $10.6B, FY22 REVENUE OF $2.1B, FY22 REVENUE OF $566M, 5-YEAR CAGR OF 25% 5-YEAR CAGR OF 66% 5-YEAR CAGR OF 20% 5-YEAR CAGR O
Slide 30: Strong, Profitable Growth
STRONG, PROFITABLE GROWTH Q1 F22 Q1 F23 Revenue ($M) Gross Margin Operating Margin Revenue ($M) Gross Margin Operating Margin 30,000 100% 10,000 100% 3 5 8 12 7 90% 90% 24,000 8,000 80% 44 80% 49 66% 67% 70% 18,000 6,000 62% 63% 66% 67% 70% 36 60% 45 60% 12,000 60% 47% 50% 4,000 41% 48% 50% 37% 38%
Slide 31: Why Accelerated Computing?
109 WHY ACCELERATED COMPUTING? Advancing Computing in the Post-Moore’s Law Era 108 GPU-Computing perf 107 2X per year 1000X In 10 years ▪ The world’s demand for computing power continues to grow exponentially, yet CPUs are no longer keeping up 106 as Moore’s law has ended 105 1.1X per year ▪ NVIDIA
Slide 32: World Leader in Accelerated Computing
WORLD LEADER IN ACCELERATED COMPUTING Our Four Market Platforms & Key Brands GAMING DATA CENTER PROFESSIONAL VISUALIZATION AUTOMOTIVE GeForce GPUs for PC Gamers DGX/HGX/EGX for HPC/AI Compute Quadro/NVIDIA RTX for Workstations DRIVE for Autonomous Vehicles NVIDIA Networking
Slide 33: Data Center
DATA CENTER High Performance Computing (HPC) and AI REVENUE ($M) REGISTERED NVIDIA EVERY MAJOR CLOUD 90%+ SHARE OF ACCELERATORS DEVELOPERS PROVIDER IN SUPERCOMPUTING NVIDIA Share of New TOP500 Systems $10,613 3.0M 70% 70% 66% 5-YR CAGR 2.5M $6,696 2.0M 41% 34% 1.5M 24% $2,932 $2,983 1.0M $1,932 FY18
Slide 34: Gaming
GAMING GeForce — The World’s Largest Gaming Platform REVENUE ($M) HIGHLIGHTS 200M+ GAMERS ON GEFORCE $12,462 25% 5-YR CAGR #1 in PC gaming with more than 3X the revenue of the other major GPU vendor $7,759 $6,246 Expanding the market with gaming $5,513 $5,518 laptops and cloud gaming Powering the Ni
Slide 35: Professional Visualization
PROFESSIONAL VISUALIZATION Workstation Graphics REVENUE ($M) 50+ APPLICATIONS 45M DESIGNERS AND CREATIVES UNLOCKING NEW MARKETS $2,111 Accelerate Rendering | AR/VR | Data Science 20% 5-YR CAGR Simulation and Sci Viz | Virtual Workstations Foundry $1,212 $1,130 $1,053 $934 Remingto n FY18 FY19 FY20 F
Slide 36: Automotive
AUTOMOTIVE Infotainment and Autonomous Vehicles REVENUE ($M) NVIDIA DRIVE PARTNERS STRONG PARTNERSHIP / ECOSYSTEM 90 3% 5-YR CAGR $700 82 80 $641 70 $566 $558 $536 JAGUAR RANGE ROVER 60 50 49 45 40 VOLVO MERCEDES-BENZ 30 30 25 20 14 DIDI ZF 10 10 0 FY18 FY19 FY20 FY21 FY22 Cars Trucks Tier 1s Robo t
Slide 37: Large and Diverse Customer Base
LARGE AND DIVERSE CUSTOMER BASE Reaching Hundreds of Millions of End Users Through Hundreds of Customers GAMING DATA CENTER PRO VISUALIZATION AUTO Reaching 200M+ PC Gamers Every Major PC OEM/ODM Every Major Graphics Card Manufacturer Cloud 45M Designers/Creatives HPC ORNL LLNL Piz ABCI 20M Enterpris
Slide 38: Financials
FINANCIALS
Slide 39: Annual Cash & Cash Flow Metrics
ANNUAL CASH & CASH FLOW METRICS OPERATING INCOME (NON-GAAP) — $M OPERATING CASH FLOW — $M Axis Title 12,690 9,108 5,822 6,803 4,761 3,502 3,743 4,407 3,617 3,735 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FREE CASH FLOW (NON-GAAP) — $M CASH BALANCE — $M 8,049 21,208 4,677 4,272 10,897 11,561
Slide 40: Commitment to ESG
COMMITMENT TO ESG ENVIRONMENTAL SOCIAL GOVERNANCE A Place For People To Do Their Life's Work MANAGEMENT #1 Time Magazine’s 100 Most Influential People Barron’s Top CEOs NVIDIA GPUs Are 40X Earth-2 – Building the Fortune’s World’s Most Admired Companies More Energy Efficient World’s Most Powerful AI
Slide 41: Reconciliation of Non-GAAP to GAAP Financial Measures
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
Slide 42: Reconciliation of Non-GAAP to GAAP Financial Measures
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES ACQUISITION- STOCK-BASED IP-RELATED GROSS MARGIN NON-GAAP RELATED AND COMPENSATION GAAP COSTS OTHER COSTS (A) (B) Q1 FY2022 66.2% (1.6) (0.4) (0.1) 64.1% Q2 FY2022 66.7% (1.3) (0.5) (0.1) 64.8% Q3 FY2022 67.0% (1.2) (0.6) — 65.2% Q4 FY2022 67.0%
Slide 43: Reconciliation of Non-GAAP to GAAP Financial Measures (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ACQUISITION- STOCK-BASED IP-RELATED GROSS MARGIN NON-GAAP RELATED AND COMPENSATION GAAP COSTS OTHER COSTS (A) (B) FY 2018 60.2% — (0.3) — 59.9% FY 2019 61.7% — (0.2) (0.3) 61.2% FY 2020 62.5% — (0.4) (0.1) 62.0% FY 2021 65.6% (2.6) (0.5)
Slide 44: Reconciliation of Non-GAAP to GAAP Financial Measures (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) OPERATING MARGIN ACQUISITION ACQUISITION- STOCK-BASED ($ IN MILLIONS & NON-GAAP TERMINATION RELATED AND COMPENSATION OTHER (C) GAAP MARGIN COST OTHER COSTS (A) (B) PERCENTAGE) $2,557 — (167) (429) (5) $1,956 Q1 FY2022 45.2% — (3.0) (7.6)
Slide 45: Reconciliation of Non-GAAP to GAAP Financial Measures (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) OPERATING MARGIN ACQUISITION- STOCK-BASED OTHER ($ IN MILLIONS & NON-GAAP RELATED AND COMPENSATION GAAP (C) MARGIN PERCENTAGE) OTHER COSTS (A) (B) $3,617 (13) (391) (3) $3,210 FY 2018 37.2% (0.2) (4.0) — 33.0% $4,407 (2) (557) (44) $3,80
Slide 46: Reconciliation of Non-GAAP to GAAP Financial Measures (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ACQUISITION- ACQUISITION STOCK-BASED RELATED AND OTHER TAX IMPACT OF NON-GAAP TERMINATION COMPENSATION GAAP OTHER COSTS (C) ADJUSTMENTS COST (B) (A) Q1 FY2023 Net income $3,443 (1,353) (149) (578) (25) 280 $1,618 ($ in million) Shares us
Slide 47: Reconciliation of Non-GAAP to GAAP Financial Measures (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) PURCHASES RELATED TO PRINCIPAL PAYMENTS ($ IN NET CASH PROVIDED BY FREE CASH FLOW PROPERTY AND EQUIPMENT ON PROPERTY AND MILLIONS) OPERATING ACTIVITIES AND INTANGIBLE ASSETS EQUIPMENT FY 2018 $2,909 593 — $3,502 FY 2019 $3,143 600 — $3,7
Slide 48: Reconciliation of Non-GAAP to GAAP Financial Measures
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES Q2 FY2023 ($ IN MILLIONS) OUTLOOK Non-GAAP gross margin 67.1% Impact of stock-based compensation expense, acquisition-related costs, and other costs (2.0%) GAAP gross margin 65.1% Non-GAAP operating expenses $1,750 Stock-based compensation expens
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