Slide 1: Investor Presentation Q2 FY24
Investor Presentation Q2 FY24 August 28, 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; CSPs undertaking a generational transition to update their infrastructure
Slide 3: Content
Content • Q2 FY24 Earnings Summary • Key Announcements This Quarter • NVIDIA Overview • Financials • Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 4: Q2 FY24 Earnings Summary
Q2 FY24 Earnings Summary
Slide 5: Highlights
Highlights • Exceptional growth driven by Data Center • Total revenue up 101% Y/Y to $13.51B, above outlook of $11.00B +/- 2% • Data Center up 171% Y/Y to $10.32B • Gaming up 22% Y/Y to $2.49B • Record Data Center revenue on tremendous demand for NVIDIA accelerated computing and AI platforms • CSPs
Slide 6: Q2 FY24 Financial Summary
Q2 FY24 Financial Summary GAAP Non-GAAP 15,500 Revenue($M) Non-GAAP GM 90.0% 85.0% Q2 FY24 Y/Y Q/Q Q2 FY24 Y/Y Q/Q $13,507 13,500 80.0% Revenue $13,507 +101% +88% $13,507 +101% +88% 11,500 71.2% 75.0% 70.0% Gross Margin 70.1% +26.6 pts +5.5 pts 71.2% +25.3 pts +4.4 pts 9,500 66.8% 66.1% 65.0% Operat
Slide 7: Data Center
Data Center Highlights 171% Y/Y • Data Center compute revenue nearly tripled year-on-year, driven and primarily by accelerating demand from cloud service providers 141% Q/Q and large consumer internet companies for our HGX platform $10,323 • AWS, Google Cloud, Meta, Microsoft Azure, and Oracle Cloud
Slide 8: Gaming
Gaming 22% Y/Y and Highlights 11% Q/Q $2,486 • Growth fueled by GeForce RTX 40 series GPUs for laptops and desktops $2,240 • Large upgrade opportunity ahead: just 47% of installed base have upgraded to RTX; ~20% have a GPU with RTX 3060 or higher $2,042 • NVIDIA GPU-powered laptops have gained in po
Slide 9: Professional Visualization
Professional Visualization Highlights • Ada architecture ramp drove strong growth, rolling out initially in laptop workstations $496 • Desktop workstations refresh coming in Q3 28% Q/Q • Powerful new RTX systems with up to 4 NVIDIA RTX 6000 GPUs, 24% Y/Y configured with NVIDIA AI Enterprise or NVIDI
Slide 10: Automotive
Automotive Highlights • Solid y/y growth driven by ramp of self-driving platforms based on NVIDIA DRIVE Orin SoC with several new energy vehicle makers $294 $296 15% Y/Y • Sequential decline reflects lower overall automotive demand, 15% Q/Q particularly in China $251 $253 • Announced that NVIDIA DRI
Slide 11: Sources & Uses of Cash
Sources & Uses of Cash 400% Y/Y Highlights and 118% Q/Q • Y/Y and Q/Q growth were both driven by higher revenue $6,348 • Returned $3.4B to shareholders in the form of shares repurchased and cash dividends • Invested $300M in capex (includes principal payments on PP&E) • Ended the quarter with $16.0B
Slide 12: Q3 FY24 Outlook
Q3 FY24 Outlook Revenue $16.0 billion, plus or minus 2% Expect sequential growth to be driven largely by Data Center, with Gaming and Pro Viz also contributing Gross Margins 71.5% GAAP and 72.5% non-GAAP, plus or minus 50 basis points Operating Expense Approximately $2.95 billion GAAP and $2.00 bill
Slide 13: Key Announcements This Quarter
Key Announcements This Quarter
Slide 14: NVIDIA Grace Hopper Superchips Now Available
NVIDIA Grace Hopper Superchips Now Available • GH200 Grace Hopper Superchip combines our first Arm-based Grace CPU with an H100 GPU • Using NVIDIA NVLink-C2C interconnect at 900GB/s (7X faster than PCIe Gen5), it delivers a CPU+GPU coherent access to over 600GB of memory • Ideal for giant AI and HPC
Slide 15: DGX GH200 AI Supercomputer Extends the Frontier of LLMs
DGX GH200 AI Supercomputer Extends the Frontier of LLMs • DGX GH200 is a new class of large-memory AI supercomputer powered by 256 NVIDIA GH200 Grace Hopper Superchips and the NVIDIA NVLink Switch System, with massive, shared memory space • 1 exaflop of performance and 144TB of shared memory for gia
Slide 16: NVIDIA Grace Hopper Next-Gen Platform with HBM3e
NVIDIA Grace Hopper Next-Gen Platform with HBM3e • Announced the next-gen NVIDIA GH200 Grace Hopper platform with HBM3e memory • Based on two Grace Hopper Superchips connected by NVIDIA NVLink interconnect technology • The new platform comprises a single server with 144 Arm Neoverse cores, eight pet
Slide 17: New NVIDIA L40S GPU for Gen AI and Industrial Digitalization
New NVIDIA L40S GPU for Gen AI and Industrial Digitalization • NVIDIA L40S is a universal data center processor designed to accelerate the most compute-intensive applications, including • AI training and inference • 3D design and visualization • video processing • industrial digitalization • Availab
Slide 18: MGX Server Reference Design for Accelerated Computing
MGX Server Reference Design for Accelerated Computing • NVIDIA MGX server reference design is a scalable and open accelerated computing server architecture • Helps system manufacturers quickly and cost-effectively build more than 100 server variations to address diverse AI, HPC and Omniverse applica
Slide 19: Spectrum-X End-to-End Ethernet Platform
Spectrum-X End-to-End Ethernet Platform • NVIDIA Spectrum-X is an end-to-end networking platform designed to optimize the performance and efficiency of Ethernet-based AI clouds • Combines NVIDIA Spectrum-4 switch, with NVIDIA BlueField-3 DPU, NVIDIA LinkX, and NVIDIA software • The world’s first Eth
Slide 20: NVIDIA AI Announcements for Custom Gen AI by Enterprises
NVIDIA AI Announcements to Help Accelerate the Adoption of Custom Gen AI by Enterprises • NVIDIA AI Workbench – a unified, easy-to-use workspace that allows developers to quickly create, test and customize pretrained Gen AI models on a PC or workstation - then scale them to virtually any data center
Slide 21: VMware and NVIDIA Unlock Generative AI for Enterprises
VMware and NVIDIA Unlock Generative AI for Enterprises • Announced a major new enterprise offering called VMware Private AI Foundation with NVIDIA • VMware Private AI Foundation is a fully integrated platform featuring NVIDIA AI software and accelerated computing with multi-cloud software for enterp
Slide 22: Snowflake and NVIDIA Team on Gen AI in the Data Cloud
Snowflake and NVIDIA Team to Help Businesses Harness Their Data for Gen AI in the Data Cloud • Partnership with Snowflake to provide businesses with an accelerated path to create customized Gen AI applications using their own proprietary data, all securely within the Snowflake Data Cloud • With the
Slide 23: WPP Partners With NVIDIA for Gen AI Content Engine
WPP Partners With NVIDIA to Build Gen AI-Enabled Content Engine for Digital Advertising • NVIDIA and WPP are developing a content engine that harnesses NVIDIA Omniverse and AI to enable creative teams to produce high-quality commercial content faster, more efficiently and at scale • The engine conne
Slide 24: New NVIDIA RTX Ada GPUs to Power Workstations
New NVIDIA RTX Ada GPUs to Power Workstations for Gen AI and LLM, Content Creation, Data Science • Global systems builders, including BOXX, Dell Technologies, HP and Lenovo, announced powerful new workstations based on NVIDIA RTX 6000 • Up to four GPUs in a single desktop workstation • Up to 5,828 T
Slide 25: Alliance for OpenUSD (AOUSD) Co-Founded
NVIDIA, Pixar, Adobe, Apple and Autodesk Co-Founded the Alliance for OpenUSD (AOUSD) • AOUSD was formed to promote the standardization, development, evolution, and growth of Pixar’s Universal Scene Description technology • Standardize the 3D ecosystem by advancing the capabilities of Open Universal
Slide 26: New NVIDIA Generative AI Omniverse Cloud APIs
New NVIDIA Generative AI Omniverse Cloud APIs • Enable developers to more seamlessly implement and deploy OpenUSD pipelines and applications • ChatUSD – LLM copilot for USD developers that can answer USD knowledge questions or generate Python-USD code scripts • RunUSD – translates OpenUSD files into
Slide 27: MediaTek Partners With NVIDIA on Automotive AI
MediaTek Partners With NVIDIA to Transform Automobiles With AI and Accelerated Computing • MediaTek will develop mainstream automotive SoCs for global OEMs that integrate new NVIDIA GPU chiplet IP for Al and graphics • The combination of MediaTek’s SoC with NVIDIA’s GPU and AI software will enable n
Slide 28: NVIDIA Overview
NVIDIA Overview
Slide 29: NVIDIA company overview
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 30: 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 31: 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 32: 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 33: NVIDIA's Expanding Accelerated Computing Ecosystem
NVIDIA’s Expanding Accelerated Computing Ecosystem Developers CUDA Downloads* 4M 40M 1.8M 20M 300 Libraries 2020 2023 2020 2023 *Cumulative 400 AI Models GPU-Accelerated AI Startups Applications 100 Updated in the Last Year 14K 3,000 700 6K 2020 2023 2020 2023
Slide 34: NVIDIA's Multi-Sided Platform and Flywheel
NVIDIA’s Multi-Sided Platform and Flywheel NVIDIA is valued by every stakeholder in the ecosystem: 4 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 greate
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 $400K $10M (including switches, cables, racks) Application Application Re-Engineered for Acceleration CPU server racks CUDA-X A
Slide 36: 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 37: 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 38: Advancing Industrial Digitalization with NVIDIA Omniverse
Advancing Industrial Digitalization Efforts with NVIDIA Omniverse NVIDIA OVX servers | RTX workstations Enterprise software | Cloud services FACTORY ROBOTICS WAREHOUSE DIGITAL TWIN DIGITAL TWIN DIGITAL TWIN • NVIDIA Omniverse is a software platform helping to power industrial digitalization. • Our i
Slide 39: 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 40: 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 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 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 Enterprise
Slide 43: Driving Strong & Profitable Growth
Driving Strong & Profitable Growth Operating Income (Non-GAAP, $M) Operating Margin (Non-GAAP) Revenue ($M) $15,000 $12,690 70% $12,000 $10,828 60% $26,914 $26,974 $9,040 $9,000 52% $6,803 47% 50% $6,000 $4,407 41% $3,735 34% 40% $20,699 $3,000 38% 34% $0 30% $16,675 FY19 FY20 FY21 FY22 FY23 1H FY24
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 80% center-scale innovation across silicon, systems, $18,000 $17,969 algorithms and applications. $15,965 75% $14,417 Significant expertise and ef
Slide 45: Strong Cash Flow Generation
Strong Cash Flow Generation Free Cash Flow (Non-GAAP) Capital Allocation $8.7B $8.0B Share Repurchase $10B repurchased in FY23 Additional $25B in stock repurchases authorized, adding to $4B which remained as of end of Q2 $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) Leader in AI & HPC 51% 5-YR CAGR $15,005 $14,607 #1 in AI training and inference Through FY23 Used by all hyperscale & major cloud computing providers and 35,000 organizations $10,613 Powers 74% of the TOP500 supercompute
Slide 48: Modern AI is a Data Center Scale Computing Workload
Modern AI is a Data Center Scale Computing Workload Data centers are becoming AI factories: data as input, intelligence as output AI Training Computational Requirements Fueling Giant-Scale AI Infrastructure NVIDIA compute & networking GPU | DPU | CPU 1010 All AI Models Excluding Transformers: 8X / 2
Slide 49: Gaming
Gaming GeForce — the world’s largest gaming platform Revenue ($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 $6,246 $5,518 $4,726 Growth Drivers Ri
Slide 50: 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 51: 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 $674 Grow
Slide 52: Automotive
Automotive Autonomous Vehicles (AV) & AI Cockpit Revenue ($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 Next-generation DRIVE Thor t
Slide 53: Growing NVIDIA DRIVE Pipeline
Growing NVIDIA DRIVE Pipeline $14B Design Win Pipeline — 6 Year Horizon NETA 2023
Slide 54: Financials
Financials
Slide 55: 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 56: 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 57: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 58: 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) Q2 FY24 $9,614 (119) (31) (2) — — $9,462 Gross margin ($ in million) 71.2% (0.9) (0.2) — — — 70.1% Operating i
Slide 59: 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) Costs GAAP Q2 FY2023 45.9% (1.8) (0.6) — 43.5% Q3 FY2023 56.1% (2.0) (0.5) — 53.6% Q4 FY2023 66.1% (2.0) (0.5) (0.3) 63.3% Q1 FY2024 66
Slide 60: 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) $6,768 FY
Slide 61: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Income Acquisition-Related Stock-Based and Margin Acquisition IP-Related Other Non-GAAP and Other Costs Compensation GAAP ($ in Millions & Termination Cost Costs (C) (A) (B) Margin Percentage) $4,407 — (2) (557) (35) (9) $3,804
Slide 62: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Principal Payments Purchases Related to Net Cash on Property ($ 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 — $3,743 FY
Slide 63: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures ($ in Millions) Q3 FY24 Outlook Non-GAAP gross margin 72.5% Impact of stock-based compensation expense, acquisition-related costs, and other costs (1.0%) GAAP gross margin 71.5% Non-GAAP operating expenses $2,000 Impact of stock-based compensatio
Slide 64: NVIDIA
@INVIDIA.