Slide 1: NVIDIA Investor Presentation
NVIDIA Investor Presentation October 2022
Slide 2: Forward-looking statements disclaimer
Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our growth and growth drivers; trends and our opportunities in existing and new markets; AI-fueled applications supercharging the exponential growth in demand
Slide 3: 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 4: 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 5: 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,
Slide 6: 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
Slide 7: 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 metaver
Slide 8: 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 9: 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 10: 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-Engin
Slide 11: New NVIDIA Software and Services
New NVIDIA Software and Services Enabling the World’s Enterprises to Revolutionize Industries with AI NVIDIA AI Enterprise NVIDIA Omniverse NVIDIA Nemo LLM NVIDIA BioNemo The operating engine of AI for A platform for designing, building, NVIDIA-hosted cloud service for NVIDIA-hosted cloud service fo
Slide 12: 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 13: Driving Strong & Profitable Growth
Driving Strong & Profitable Growth Operating Profit (Non-GAAP) Operating Margin (Non-GAAP) 49% $12,690 Revenue ($M) $12,000 47% 47% 45% $26,914 43% $6,803 41% $6,000 41% $5,280 $4,407 39% $3,617 $3,735 1H 1H 38% 37% 37% 35% 35% 34% $0 33% FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $16,675 Fisca
Slide 14: NVIDIA Gross Margins Reflect Value of Acceleration
NVIDIA Gross Margins Reflect Value of Acceleration Accelerated computing requires full-stack and data Gross Profit (Non-GAAP) Gross Margin (Non-GAAP) center-scale innovation across silicon, systems, 69% algorithms and applications. $18,000 $17,969 67% 67% Significant expertise and effort are require
Slide 15: 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 $5.3B repurchased in 1H FY23; ~$12B Remaining Authorization Through Jan 2024 as of Aug 2023 $4.7B $4.3B Dividend $400M in FY 2022 $3.1B $2.9B Plan to Maintain $2.2B 1H 1H St
Slide 16: Our Market Platforms at a Glance
Our Market Platforms at a Glance Gaming Data Center Professional Visualization Automotive 46% of FY22 revenue 40% of FY22 revenue 8% of FY22 revenue 2% of FY22 revenue FY22 Revenue $12.5B FY22 Revenue $10.6B FY22 Revenue $2.1B FY22 Revenue $0.6B 5-yr CAGR 25% 5-yr CAGR 66% 5-yr CAGR 20% 5-yr CAGR 3%
Slide 17: Data Center
Data Center The leading computing platform for AI, HPC & graphics Revenue ($M) Leader in AI & HPC $10,613 66% 5-YR CAGR #1 in AI training and inference Used by all hyperscale & major cloud computing providers and 35,000 organizations $7,556 Powers 357 of the TOP500 supercomputers $6,696 Growth Drive
Slide 18: Data Center: Hyperscale Revenue
Data Center Strong growth fueled by AI performance leadership and huge developer ecosystem CUDA Downloads – 4.5X in 4 Yrs 90,000x 37M 2015 36,000 Mins (25 Days) Hyperscale Revenue K80 3x # of Developers – 3.5X in 4 Yrs 2017 480 Mins V100 (8 Hours) 3.5M 2021 Accelerated Applications – 5X in 4 Yrs 24
Slide 19: Modern AI is a Data Center Scale Computing Workload
Modern AI is a Data Center Scale Computing Workload Data centers are becoming AI factories: data as input, intelligence as output AI Training Computational Requirements Fueling Giant-Scale AI Infrastructure NVIDIA compute & networking GPU | DPU | CPU 1010 All AI Models Excluding Transformers: 8x / 2
Slide 20: Wave of New Data Center Products
Wave of New Data Center Products Ramping new architectures for GPU, CPU and DPU H100 GPU Bluefield-3 DPU Grace CPU Superchip World’s Most Advanced Chip First 400 Gb/s DPU High Performance CPU for HPC and AI 80B Transistors Line-rate processing of software-defined 144 Cores | 740 SPECrate®2017_int_ba
Slide 21: Gaming
Gaming GeForce — the world’s largest gaming platform Revenue ($M) $12,462 25% 5-YR CAGR Leader in PC Gaming Strong #1 market position with over 80% share 15 of the Top 15 most popular GPUs on Steam Leading performance & innovation $7,759 200M+ gamers on GeForce $6,246 $5,513 $5,518 $5,662 1H 1H Grow
Slide 22: Strong Gaming Fundamentals
Strong Gaming Fundamentals 77% 81% 2021 340+ RTX Games and Applications 2017 60% #1 #1 #1 #1 42% 3.1B Video App Photo App 3D App Broadcast App 2.3B PC Gamers Total Gamers Boomers Gen X Millennials Gen Z 2:30 4:25 6:50 7:20 Expanding reach to Hrs/Wk Hrs/Wk Hrs/Wk Hrs/Wk 110M Creators & Broadcasters N
Slide 23: The Next Generation: Ada Lovelace
The Next Generation: Ada Lovelace A quantum leap for gamers | Paves the way for fully simulated worlds NVIDIA Architecture 90 Shader A Giant Leap in Processing 200 RT Throughput and Energy Efficiency – up to 4x faster, 300 OFA and over 2x the performance at the same power Shipping in October TOPs 1,
Slide 24: Professional Visualization
Professional Visualization Workstation graphics Revenue ($M) Leader in Workstation Graphics 20% 5-YR CAGR 90%+ market share in graphics $2,111 for workstations 45M Designers and Creators Strong software ecosystem with over 70 supported applications $1,212 $1,130 $1,118 $1,053 $934 1H 1H Growth Drive
Slide 25: Automotive
Automotive Autonomous Vehicles (AV) & AI Cockpit Revenue ($M) Leader in Autonomous Driving 1,400 Our next billion-dollar business Historical revenue driven largely by infotainment Over $11B design win pipeline across 40 customers Future growth primarily fueled by NVIDIA DRIVE, our AV and 1,200 AI co
Slide 26: Summary
Summary Accelerated Computing Essential for the Next Era – AI | Graphics | Simulation NVIDIA Innovates at Data Center Scale – GPU | CPU | DPU | Full Stack New Software & Services – NVIDIA AI | Omniverse | Nemo LLM | BioNemo LLM Wave of New Chips – Ada Lovelace | Hopper | Grace | Orin Strong Revenue,
Slide 27: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 28: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures Acquisition-Related Stock-Based Gross Margin and Other Costs Compensation ($ in Millions & Margin Percentage) Non-GAAP (A) (B) IP-Related Costs GAAP $5,844 — (21) (1) $5,822 FY 2018 60.2% — (0.3) — 59.9% $7,233 — (27) (35) $7,171 FY 2019 61.7% —
Slide 29: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Acquisition- Margin Related and Stock-Based ($ in Millions & Acquisition Other Costs Compensation Other Margin Percentage) Non-GAAP Termination Cost (A) (B) (3) GAAP $3,617 — (13) (391) (3) $3,210 FY 2018 37.2% — (0.2) (4.0) —
Slide 30: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Purchases Related to Principal Payments Net Cash Property and Equipment on Property Provided by ($ in Millions) Free Cash Flow and Intangible Assets and Equipment Operating Activities FY 2018 $2,909 593 — $3,502 FY 2019 $3,143 600 — $3,7
Slide 31: NVIDIA
SINVIDIA.