Slide 1: Investor Presentation Q3 FY24
Investor Presentation Q3 FY24 November 27, 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; a broadening set of GPU-specialized CSPs; entering the holidays with our b
Slide 3: Content
Content • Q3 FY24 Earnings Summary • Key Announcements This Quarter • NVIDIA Overview • Financials • Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 4: Q3 FY24 Earnings Summary
Q3 FY24 Earnings Summary
Slide 5: Highlights
Highlights Record quarter driven by strong Data Center growth • Total revenue up 206% Y/Y to $18.12B, well above outlook of $16.00B +/- 2% • Data Center up 279% Y/Y to $14.51B • Gaming up 81% Y/Y to $2.86B Record Data Center revenue driven by continued ramp of NVIDIA HGX platform and InfiniBand netw
Slide 6: Q3 FY24 Financial Summary
Q3 FY24 Financial Summary GAAP Non-GAAP 19,500 Revenue($M) Non-GAAP GM 90.0% $18,120 17,500 Q3 FY24 Y/Y Q/Q Q3 FY24 Y/Y Q/Q 85.0% 15,500 Revenue $18,120 +206% +34% $18,120 +206% +34% 80.0% $13,507 13,500 75.0% 75.0% Gross Margin 74.0% +20.4 pts +3.9 pts 75.0% +18.9 pts +3.8 pts 71.2% 11,500 70.0% 66
Slide 7: Data Center
Data Center 279% Y/Y Highlights and 41% Q/Q • Data Center compute revenue quadrupled from last year, Networking revenue nearly tripled $14,514 • Strong, broad-based demand for NVIDIA accelerated computing fueled by investment in the buildout of infrastructure for LLMs, recommendation engines, and ge
Slide 8: Gaming
Gaming 81% Y/Y Highlights and 15% Q/Q • Strong demand in the important back-to-school shopping season $2,856 • The RTX ecosystem continues to grow; there are now over 475 RTX enabled games and applications $2,486 • Released TensorRT-LLM for Windows, which speeds on-device $2,240 LLM inference by up
Slide 9: Professional Visualization
Professional Visualization 108% Y/Y Highlights and 10% Q/Q • AI emerging as a powerful demand driver, including inference $416 for AI imaging in healthcare, edge AI in smart spaces and the $379 public sector • Launched a new line of desktop workstations based on NVIDIA RTX Ada Lovelace generation GP
Slide 10: Automotive
Automotive Highlights • Growth primarily driven by continued growth in self-driving platforms based on NVIDIA DRIVE Orin SoC, and the ramp of AI cockpit solutions with global OEM customers • Extended automotive partnership with Foxconn to include 4% Y/Y NVIDIA DRIVE Thor, next-generation automotive
Slide 11: Sources & Uses of Cash
Sources & Uses of Cash 1,771% Y/Y Highlights and 16% Q/Q • Y/Y and Q/Q growth primarily driven by higher revenue partially $7,333 offset by higher cash tax payments $6,348 • Utilized cash of $3.9 billion towards shareholder returns, including $3.8 billion in share repurchases and $99 million in cash
Slide 12: Q4 FY24 Outlook
Q4 FY24 Outlook $20.0 billion, plus or minus 2% Revenue Expect strong Q/Q growth to be driven by Data Center, with continued strong demand for both compute and networking. Gaming will likely decline Q/Q, as it is now more aligned with notebook seasonality Gross Margins 74.5% GAAP and 75.5% non-GAAP,
Slide 13: Key Announcements This Quarter
Key Announcements This Quarter
Slide 14: New TensorRT-LLM Software More Than Doubles Inference Performance
New TensorRT-LLM Software More Than Doubles Inference Performance TensorRT-LLM Supercharges Hopper Performance Software optimizations double leading performance • NVIDIA developed TensorRT-LLM, an open-source software 8X Increase in GPT-J 6B Inference Performance 4.6X Higher Llama2 Inference Perform
Slide 15: NVIDIA Partners With Foxconn to Build AI Factories
NVIDIA Partners With Foxconn to Build Factories and Systems for the AI Industrial Revolution • Foxconn, the world’s largest manufacturer, will integrate NVIDIA technology to develop “AI factories”, a new class of data centers • Based on the NVIDIA accelerated computing platform, including NVIDIA GH2
Slide 16: NVIDIA Partners With India Tech Giants to Advance AI
NVIDIA Partners With India Tech Giants to Advance AI Across World’s Most Populous Nation NVIDIA announced collaborations with Reliance Industries, Tata Group and Infosys to bring AI technology and skills to India • With Reliance, the companies will work together to develop India’s own foundation LLM
Slide 17: NVIDIA Sets New LLM Training Record With Largest MLPerf Submission
NVIDIA Sets New LLM Training Record With Largest MLPerf Submission Ever Six New Performance Records The fastest gets even faster • NVIDIA set six new performance records in this round, with the performance increase stemming from a combination GPT-3 175B (1B Tokens) Stable Diffusion of advances in so
Slide 18: New NVIDIA HGX H200 Supercharges Hopper
New NVIDIA HGX H200 Supercharges Hopper • NVIDIA H200 is the first GPU to offer HBM3e — faster, larger memory to fuel the acceleration of generative AI and large language models, while advancing scientific computing for HPC workloads • H200 delivers 141GB of memory at 4.8 terabytes per second, nearl
Slide 19: Grace Hopper Gains Traction with Supercomputing Customers
Grace Hopper Gains Significant Traction with Supercomputing Customers Cumulative AI Performance (ExaFLOPS of AI) 400 • Initial shipments to Los Alamos National Lab and the Swiss OFP-II National Supercomputing Centre took place in the third 350 Isambard AI quarter Delta Jupiter 300 • The U.K. governm
Slide 20: NVIDIA AI Foundry Service on Microsoft Azure
NVIDIA AI Foundry Service for Create from Enterprises on Microsoft Azure Foundation Model AI Foundations NeMo DGX Cloud • Introduced new NVIDIA AI foundry service for the development and tuning of custom generative AI enterprise applications, running on Microsoft Azure • Customers can bring their do
Slide 21: Spectrum-X Ethernet Networking Platform Available from Dell, HPE, Lenovo
NVIDIA Spectrum-X Ethernet networking platform for AI Available Soon from Dell, HPE and Lenovo • Purpose-built for gen AI, Spectrum-X offers enterprises a new class of Ethernet networking that can achieve 1.6x higher networking performance for AI communication versus traditional Ethernet offerings •
Slide 22: NVIDIA Collaborates With Genentech on Drug Discovery
NVIDIA Collaborates With Genentech to Accelerate Drug Discovery Using Generative AI • Genentech is pioneering the use of generative AI to discover and develop new therapeutics and deliver treatments to patients more efficiently • NVIDIA will work with Genentech to accelerate Genentech’s proprietary
Slide 23: NVIDIA Overview
NVIDIA Overview
Slide 24: Headquarters: Santa Clara, CA
Headquarters: Santa Clara, CA 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
Slide 25: 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 singular focus, NVIDIA is expert at accelerating software and scaling compute by a Million-X, going well beyond Moore’s law PLATFORMS NVIDIA HPC NV
Slide 26: 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 27: 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 28: Waves of Adoption of Accelerated Computing
Waves of Adoption of Accelerated Computing A generational computing platform shift A new computing era has begun Accelerated computing enabled the rise of AI, Industrial Digitalization which is driving a platform shift from general purpose to accelerated computing, and enabling new, never-before-pos
Slide 29: NVIDIA Accelerated Computing for Every Wave
NVIDIA Accelerated Computing for Every Wave Industrial Digitalization NVIDIA Omniverse is a software platform for designing, building, and operating 3D and virtual world simulations. It harnesses the power of NVIDIA graphics and AI technologies and runs on NVIDIA-powered data centers and workstation
Slide 30: NVIDIA's Accelerated Computing Ecosystem
NVIDIA’s Accelerated Computing Ecosystem Developers CUDA Downloads* The NVIDIA accelerated computing platform has attracted the largest ecosystem of developers, supporting a rapidly growing universe of applications and industry innovation 4.5M 48M Developers can engage with NVIDIA through CUDA — 1.8
Slide 31: NVIDIA's Multi-Sided Platform and Flywheel
NVIDIA’s Multi-Sided Platform and Flywheel The virtuous cycle of NVIDIA’s accelerated computing starts with an Scale installed base of several hundred million GPUs, all compatible with the CUDA programming model R&D $ • For developers — NVIDIA’s one architecture and large installed base Installed Ba
Slide 32: Huge ROI from AI Driving a Powerful New Investment Cycle
Huge ROI from AI Driving a Powerful New Investment Cycle AI can augment creativity and productivity by orders of magnitude across industries Knowledge workers will use copilots based on large language models to generate documents, answer questions, or summarize missed meetings, emails and chats — ad
Slide 33: Generative AI
Generative AI The most important computing platform of our generation TEXT ANIMATION AUDIO MOLECULE The era of generative AI has arrived, unlocking new IMAGE PROTEIN opportunities for AI across many different applications Generative AI is trained on large amounts of data 3D DNA to find patterns and
Slide 34: 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 Before Transformers = 8X / 2yrs Large Language Models, based on the Transformer architecture, Transformers = 215X / 2yrs are one of today’s most important advanced AI tec
Slide 35: Full-Stack & Data Center Scale Acceleration
Full-Stack & Data Center Scale Acceleration Drive significant cost savings and workload scaling Classical Computing—960 CPU-only servers Accelerated Computing—2 GPU servers Application Application Re-Engineered for Acceleration CPU server racks CUDA-X Acceleration Libraries Magnum IO 25X lower cost
Slide 36: The High ROI of High Compute Performance
The High ROI of High Compute Performance $1 upfront investment in NVIDIA compute and networking can translate to $5 in CSP revenue over 4 years 4-Year Rental Opportunity @$4 per GPU-HR ~$2.5B Rental 4-Year Cost of AI Infrastructure ~$1B 16K GPU Cost DC Facility Build & Operate GPU Compute 25% Perfor
Slide 37: Training & Inference — One Architecture
Training & Inference — One Architecture Cloud | On-Prem | Edge NVIDIA DGX | HGX H100 IN THE DATA CENTER AT THE EDGE NVIDIA L40S NVIDIA L40 Image Generation IGX Industrial-Grade System for Healthcare, Logistics, NVIDIA L4 Manufacturing AI Video NVIDIA H100 | L40S Universal GPUs AGX Functionally-Safe
Slide 38: Powering the AI Industrial Revolution
Powering the AI Industrial Revolution Building and Running Enterprise Gen AI Applications NVIDIA AI Foundation Pre-Trained LLMs Cloud DGX Cloud NVIDIA Enterprise On-Prem Enterprise DGX Cloud AI Chatbot Cloud AI with “RAG” APIs NVIDIA AI Enterprise Enterprise SaaS Enterprise AI chatbots & AI Platform
Slide 39: The NVIDIA AI Foundry Model on DGX Cloud
The NVIDIA AI Foundry Model on DGX Cloud Pre-trained LLMs For building enterprise AI applications NVIDIA’s “AI foundry” service leverages our AI infrastructure and expertise to build custom AI models for enterprise customers — analogous to a semiconductor foundry that uses its infrastructure and exp
Slide 40: AI Factories — A New Class of Data Centers
AI Factories — A New Class of Data Centers For running enterprise AI applications “AI factories” are a new class of data centers specially built for processing, refining and transforming vast amounts of data into NVIDIA AI Enterprise valuable AI models and tokens. Unlike traditional data centers bui
Slide 41: NVIDIA AI Enterprise
NVIDIA AI Enterprise The operating system for enterprise AI NVIDIA AI Enterprise Run Anywhere NVIDIA AI Enterprise is software for deploying and running AI with enterprise-grade security, API stability, manageability and support. Cloud-native and available in every major cloud marketplace. Certified
Slide 42: NVIDIA AI Enterprise
NVIDIA AI Enterprise Broad and deep ecosystem and distribution to reach every enterprise GSI & Service Delivery AI Platforms Software Platforms Private Cloud Public Cloud Marketplaces Server OEMs
Slide 43: NVIDIA Go-to-Market Across Cloud and On-Premises
NVIDIA Go-to-Market Across Cloud and On-Premises Reaching customers everywhere DGX Cloud DGX NVIDIA AI Foundations – Cloud services for customizing and operating generative AI models Partners HGX INFERENCE MGX AGX IGX Cloud On-Prem
Slide 44: Driving Strong & Profitable Growth
Driving Strong & Profitable Growth Operating Income (Non-GAAP, $M) Operating Margin (Non-GAAP) Revenue ($M) $24,000 $22,385 70% $38,819 $20,000 58% 60% $16,000 $12,690 $12,000 47% 50% $9,040 $8,000 $6,803 $4,407 40% $3,735 34% $26,914 $26,974 $4,000 41% 38% 34% $0 30% FY19 FY20 FY21 FY22 FY23 YTD FY
Slide 45: 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 $30,000 $28,000 80% center-scale innovation across silicon, systems, algorithms and applications. $24,000 75% 72% Significant expertise and effort
Slide 46: Strong Cash Flow Generation
Strong Cash Flow Generation 18.0 Free Cash Flow (Non-GAAP) Capital Allocation 16.0 $15.7B 14.0 Share Repurchase $10B repurchased in FY23 12.0 $25.2B Remaining Authorization as of end of Q3 10.0 $8.0B 8.0 Dividend $398M in FY 2023 6.0 $4.7B Plan to Maintain1 $4.3B 4.0 $3.8B $3.1B 2.0 Strategic Invest
Slide 47: 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 $0.9B 5-YR CAGR 51% 5-YR CAGR 10% 5-YR CAGR 11% 5-YR CAGR 10%
Slide 48: Data Center
Data Center The leading accelerated computing platform Revenue ($M) Leader in AI & HPC 51% 5-YR CAGR #1 in AI training and inference Through FY23 $29,121 Used by all hyperscale & major cloud computing providers and 40,000 enterprises Powers 76% of the TOP500 supercomputers Growth Drivers $15,005 Bro
Slide 49: NVIDIA AI — One Architecture | Train and Deploy Everywhere
NVIDIA AI — One Architecture | Train and Deploy Everywhere One-Year Rhythm x86 Training & Inference x100 B100 x86 Enterprise & Inference H200 x40 B40 Arm Training & Inference H100 L40S Gx200NVL Arm Inference GB200NVL GPU Gx200 GH200NVL GB200 GH200 Enterprise & Hyperscale AI Infrastructure Computing
Slide 50: Gaming
Gaming GeForce — the world’s largest gaming platform Revenue ($M) Leader in PC Gaming 10% 5-YR CAGR Strong #1 market position $12,462 Through FY23 15 of the top 15 most popular GPUs on Steam Leading performance & innovation $9,067 200M+ gamers on GeForce $7,759 $7,582 $6,246 $5,518 Growth Drivers Ri
Slide 51: GeForce Extends Growth, Large Upgrade Opportunity
GeForce Extends Growth, Large Upgrade Opportunity GeForce Gaming Revenue Installed Base $699+ Cumulative Sell-Through $ NVIDIA 20% CAGR 47% RTX RTX Ada NVIDIA 3YR CAGR Ampere ASP 10% Units 9% 3060+ NVIDIA 20% RTX3060+ Turing Performance 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 FY20 FY23
Slide 52: Professional Visualization
Professional Visualization Workstation graphics Revenue ($M) Leader in Workstation Graphics 11% 5-YR CAGR 95%+ market share in graphics Through FY23 $2,111 for workstations 45M Designers and Creators Strong software ecosystem with over 100 RTX $1,544 accelerated and supported applications $1,212 $1,
Slide 53: Automotive
Automotive Autonomous Vehicles (AV) & AI Cockpit Revenue ($M) Leader in Autonomous Driving 10% 5-YR CAGR NVIDIA DRIVE is our end-to-end Autonomous Vehicle (AV) and AI Through FY23 Cockpit platform featuring a full software stack and is powered by NVIDIA (systems-on-a-chip) SoCs in the vehicle DRIVE
Slide 54: $1 Trillion Long-Term Available Market Opportunity
$1 Trillion Long-Term Available Market Opportunity Omniverse Enterprise $150B Industrial Digitalization Autonomous Vehicles Autonomous Machines & Robotics $300B Enterprise NVIDIA AI Enterprise & DGX Cloud $150B Gaming Data Center Systems Cloud Service Providers & Consumer Internet $100B $300B
Slide 55: Financials
Financials
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, aim to engage manufacturing suppliers comprising at Innovators least 67% of NVIDIA’s scope 3 category 1
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 Costs (C) Adjustments (A) (B) Q3 FY24 $13,583 (119) (38) (26) — — $13,400 Gross margin ($ in million) 75.0% (0.7) (0.2) (0.1) — — 74.0% Oper
Slide 60: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Acquisition-Related Stock-Based IP-Related Gross Margin Non-GAAP and Other Costs Compensation GAAP Costs (A) (B) Q3 FY 2023 56.1% (2.0) (0.5) — 53.6% Q4 FY 2023 66.1% (2.0) (0.5) (0.3) 63.3% Q1 FY 2024 66.8% (1.7) (0.4) (0.1) 64.6% Q2 FY
Slide 61: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Gross Margin Acquisition-Related Stock-Based ($ in Millions & Non-GAAP and Other Costs Compensation IP-Related Costs GAAP Margin Percentage) (A) (B) $7,233 — (27) (35) $7,171 FY 2019 61.7% — (0.2) (0.3) 61.2% $6,821 — (39) (14) $6,768 FY
Slide 62: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Income Acquisition-Related Stock-Based and Margin Acquisition IP-Related Other Non-GAAP and Other Costs Compensation GAAP ($ in Millions & Termination Cost Costs (C) (A) (B) Margin Percentage) $4,407 — (2) (557) (35) (9) $3,804
Slide 63: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Principal Payments Purchases Related to Property Net Cash on Property ($ in Millions) Free Cash Flow and Equipment Provided by and Equipment and Intangible and Intangible Assets Operating Activities 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) Q4 FY24 Outlook Non-GAAP gross margin 75.5% Impact of stock-based compensation expense, acquisition-related costs, and other costs (1.0%) GAAP gross margin 74.5% Non-GAAP operating expenses $2,200 Impact of stock-based compensatio
Slide 65: nVIDIA st”
nVIDIA st”