#1NVIDIA® INVESTOR PRESENTATION Q2 FY2021 August 24, 2020#2Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our financial position; our markets; the performance, benefits, abilities and impact of our products and technology; NVIDIA continuing to win new business; our partnerships; the impact of COVID-19 and our response; our use of cash; NVIDIA's financial outlook for the third quarter of fiscal 2021, including the impact of Mellanox; our operating expenses for fiscal 2021; the benefits and impact of the Mellanox acquisition; our growth drivers; the users and customers of our products and us reaching them; our financial policy; future revenue growth; our opportunities in existing and new markets; the TAM for our products; and performance in our financial metrics are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and any other forward-looking statements that go beyond historical facts that are made in this presentation are subject to risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners' products; design, manufacturing or software defects; changes in consumer preferences and demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems and other factors. NVIDIA has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, and you should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although NVIDIA believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. For a complete discussion of factors that could materially affect our financial results and operations, please refer to the reports we file from time to time with the SEC, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports we file with the SEC are posted on our website and are available from NVIDIA without charge. NVIDIA uses certain non-GAAP measures in this presentation including non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP operating income, non-GAAP diluted earnings per share, non-GAAP operating expenses, non-GAAP other income (expense), net, free cash flow, and adjusted EBITDA. NVIDIA believes the presentation of its non-GAAP financial measures enhances investors' overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies. Further information relevant to the interpretation of non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in the slide titled "Reconciliation of Non-GAAP to GAAP Financial Measures". 2 NVIDIA.#3CONTENT Q2 FY2021 Earnings Summary Key Announcements This Quarter NVIDIA Overview Financials Non-GAAP to GAAP Reconciliation#4Q2 FY21 EARNINGS SUMMARY#5"The world is confronting COVID-19, one of the greatest challenges in human history. "We owe our thanks to those on the front lines of this crisis: first responders, healthcare workers, and service providers who inspire us every day with their bravery and selflessness. "At NVIDIA, we closed our nearly 60 offices around the world. We continue to pay contractors their full wages despite reduced staffing needs in our facilities. We gave employees raises early to put a little more money in their hands. Paying it forward, our employees have donated more than $10 million to help their communities." Jensen 2020 Annual Meeting of Stockholders P#6HIGHLIGHTS Record Data Center revenue and exceptional strength in Gaming Total revenue up 50% y/y to $3.87B, ahead of outlook of $3.65B Data Center up 167% y/y to a record $1.75B; Gaming up 26% y/y to $1.65B ▸ Mellanox growth accelerated in its first quarter as part of NVIDIA; contributed 14% of total revenue NVIDA computing adoption is accelerating Cumulative CUDA GPUs shipped reach 1 billion NVIDIA developers reach 2 million: took 10+ years to reach 1st million, <2 years for 2nd million Ampere GPU architecture launch kicks off major new product cycle Ampere GPU is our biggest ever generational leap: performance up to 20X vs Volta Strong Hyperscale demand drives early ramp; Vertical Industries ramp still ahead 6 NVIDIA.#7Q2 FY2021 FINANCIAL SUMMARY $3,105 $3,080 $3,014 $3,866 GAAP Non-GAAP Q2 FY21 Y/Y Q/Q Q2 FY21 Y/Y Q/Q Revenue $3,866 +50% +26% $3,866 +50% +26% Gross Margin 58.8% -100 bps -630 bps 66.0% +590 bps +20 bps $2,579 65.8% 66.0% 65.4% 64.1% Operating Income $651 +14% -33% $1,516 +89% +26% 60.1% Net Income $622 +13% -32% $1,366 +79% +22% Diluted EPS $0.99 +10% -33% $2.18 +76% +21% Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Cash Flow from Ops $1,566 +67% +72% $1,566 +67% +72% ■Revenue ($M) -Non-GAAP GM No difference between GAAP and Non-GAAP Cash Flow from Operations and Revenue 7 NVIDIA.#8$1,313 Q2FY20 Revenue ($M) $1,659 $1,491 $1,339 GAMING 24% q/q and 26% y/y $1,654 Highlights Broad-based upside across regions, products, channels After closing down at the outset of the pandemic, stores and iCafes have largely reopened and demand has picked up; online sales continue to thrive Gaming's growth amidst the pandemic highlights its emergence as a leading form of entertainment worldwide Gaming laptop demand very strong; ramped 100+ new laptops from OEMs Q3FY20 Q4FY20 Q1FY21 Q2FY21 NVIDIA's GeForce NOW cloud gaming service extends support to Chromebooks - joining PCs, Macs and Android devices 00 8 NVIDIA.#9DATA CENTER $726 $655 Revenue ($M) $968 $1,141 54% q/q and 167% y/y $1,752 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Highlights Both compute and networking within Data Center set a record, with accelerating year-on-year growth We launched our new Ampere GPU architecture - greatest generational leap A100 has been widely adopted by all major server vendors and cloud service providers NVIDIA set 16 records, sweeping all categories for commercially available solutions in the latest MLPerf benchmark The latest TOP500 list showed that 8 of the world's top 10 supercomputers use NVIDIA GPUs and/or networking 9 NVIDIA.#10PROFESSIONAL VISUALIZATION Revenue ($M) $324 $331 $307 $291 34% q/q and 30% y/y $203 Highlights Sales were hurt by lower enterprise demand amid the closure of many offices around the world as a result of the pandemic Initiatives by enterprises to enable remote workers drove demand for virtual and cloud-based graphics solutions VGPU bookings accelerated, increasing 60 percent year on year Despite NT challenges, we are winning new business in areas such as Healthcare - including Siemens, Philips, and General Electric - and the Public Sector Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 10 NVIDIA.#11$209 Revenue ($M) $162 $163 $155 AUTOMOTIVE 28% q/q and 47% y/y $111 Highlights Impact of the pandemic was less pronounced than our outlook for a 40% q/q decline, as auto production started to recover after bottoming in April ▸ Announced a landmark partnership with Mercedes-Benz which, starting in 2024, will launch software-defined, intelligent vehicles across its entire fleet, using end- to-end NVIDIA technology The Mercedes-Benz announcement is transformative for NVIDIA's evolving business model as the software content of our platforms grows, positioning us to build a recurring revenue stream Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 11 NVIDIA.#12SOURCES & USES OF CASH Cash Flow from Operations ($M) $936 $1,640 $1,465 $909 72% q/q and 67% y/y $1,566 Highlights Funded Mellanox acquisition with approximately $7B in cash Returned $99M to shareholders in the form of dividends ► Invested $217M in capex Ended quarter with $11.0B in gross cash and $7.0B in debt, $4.0B of net cash Gross cash is defined as cash/cash equivalents & marketable securities. Debt is defined as principal value of debt. Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Net cash is defined as gross cash less debt. 12 NVIDIA.#13Q3 FY2021 OUTLOOK Revenue - $4.40 billion, plus or minus two percent We expect Gaming to be up just over 25 percent sequentially, with Data Center up in the low-to-mid- single digits percent sequentially. We expect both Pro Vis and Auto to be at a similar level as in Q2. Gross Margin - 62.5% GAAP and 65.5% non-GAAP, plus or minus 50 basis points Operating Expense - Approximately $1.54 billion GAAP and $1.09 billion non-GAAP Other Income & Expense - net expense of $55 million for both GAAP and non-GAAP Tax Rate - GAAP and non-GAAP both eight percent, plus or minus one percent, excluding discrete items Capital Expenditure - approximately $225 to $250 million#14KEY ANNOUNCEMENTS THIS QUARTER#15"NVIDIA-plus-Mellanox will remain at the front of the pack developing hardware technology that underpins the Al movement for some time." NVIDIA acquired industry-leading high-performance networking company Mellanox in April 2020 New NVIDIA has a much larger scale in cloud data centers Israel becomes major NVIDIA design center MOTLEY FOOL NVIDIA® M Mellanox® TECHNOLOGIES#16Peak ANNOUNCING NVIDIA A100 GREATEST GENERATIONAL LEAP - 20X VOLTA Measured 310 160 125 310 625 625 1250 00 8 CO 20 20 60 16 V100 FP64 A100 FP64 V100 A100 A100 FP32 TF32 SPARSE V100 A100 A100 FP16 FP16 SPARSE TF32 FP16 V100 A100 A100 INT8 INT8 SPARSE INT8 188-16506-988-442 NVIDIA 54B xtors | 826mm² | TSMC 7N | 40GB Samsung HBM2 | 3rd gen Tensor Core GPU | 600 GB/s NVLink#17ANNOUNCING NVIDIA A100 LIGHTHOUSE CUSTOMERS Elastic Data Center Accelerator Choice of Industry Leaders CLOUD C-Alibaba Cloud aws BAIDU AI CLOUD Microsoft Azure ORACLE Cloud Infrastructure Tencent Google Cloud Cloud SYSTEMS Atos CRAY® DELL Technologies FUJITSU GIGABYTE™ a Hewlett Packard Enterprise company Hewlett Packard Enterprise inspur Lenovo.. QCT SUPERMICRO manuk NVIDIA NVIDIA NVIDIA NVIDIA NVIDIA NVIDIA NVIDIA#18NVIDIA AMPERE GPUS COME TO GOOGLE CLOUD A100 has come to the cloud faster than any NVIDIA GPU in history A100 boosts training and inference computing performance by 20x over its predecessors and can power a broad range of compute-intensive applications, including Al training and inference, data analytics, scientific computing, genomics, edge video analytics, 5G services, and more Google's Accelerator-Optimized VM (A2) provides breakthrough performance for every size workload 100 LIN U10 U12 U13 U14 180-16506-se-A 2 NVIDIA = 10 SHE#19NVIDIA ACCELERATES WORLD'S FASTEST SUPERCOMPUTERS Highlights from International Supercomputing Conference June 2020 8 of world's 10 fastest supercomputers run NVIDIA GPUs, networking, or both (TOP500.org), including the #1 system in the US and Europe NVIDIA's Selene debuts as fastest industrial supercomputer in the US, and #7 on the TOP500 list overall, the only top 100 system to crack the 20 gigaflops/watt barrier Systems using NVIDIA GPUs are pulling away from the pack: they're nearly 3x more power-efficient than systems without NVIDIA GPUs, measured in gigaflops/watt NVIDIA Accelerates Majority of Top500 Systems 350 300 250 200 150 100 50 0 ISC17 ISC18 ISC19 ■NVIDIA GPUs ■Mellanox Networking GF/W 3 NVIDIA GPU Systems are 3x More Efficient 7 6 5 2 1 0 ISC17 ISC18 ISC19 ―non-NVIDIA Average -NVIDIA Average 19 NVIDIA.#20NVIDIA VIDIA SELENE DGX SuperPOD Deployment #1 on MLPerf for commercially available systems #7 on TOP500 (27.6 PetaFLOPS HPL) #2 on Green500 (20.5 GigaFLOPS/watt) Fastest Industrial System in U.S. 1+ ExaFLOPS AI NVIDIA Built w/ NVIDIA DGX SuperPOD Arch in 3 Weeks NVIDIA DGX A100 and NVIDIA Mellanox IB NVIDIA's decade of Al experience Configuration: 2,240 NVIDIA A100 Tensor Core GPUs 280 NVIDIA DGX A100 systems 494 Mellanox 200G HDR IB switches 7 PB of all-flash storage#21NVIDIA WINS BENCHMARK FOR AI TRAINING Sets 16 Records in MLPerf July 2020 What is MLPerf? The industry's first and only objective standard for measuring machine learning performance Consortium of over 70 universities and companies, including Google, Intel, Baidu and NVIDIA, founded in 2018 NVIDIA won all prior MLPerf benchmarks, including for training in Dec. 2018 and July 2019, and for inference Nov. 2019 MLPerf July 2020 - Al Training NVIDIA set 16 records, sweeping all categories for commercially available solutions NVIDIA was the only company to field commercially available products for all the tests NVIDIA won all 8 categories for both "at scale" (with DGX SuperPOD) and "per chip" (with A100) performance 24 21 NVIDIA.#22NVIDIA DGX SUPERPOD SETS ALL 8 AT SCALE AI RECORDS Under 18 Minutes To Train Each MLPerf Benchmark Translation (Non-recurrent) Transformer Translation (Recurrent) GNMT XXL XX 0.6 (480 A100) 0.7 (1024 A100) 0.8 (1840 A100) Image Classification ResNet-50 v.1.5 0.8 (1024 A100) Object Detection (Light Weight) SSD XX 0.8 (2048 A100) NLP BERT Recommendation DLRM Object Detection (Heavy Weight) Mask R-CNN Reinforcement Learning MiniGo 0 XX XX XX 3.3 (8 A100) Time to Train (Lower is Better) Commercially Available Solutions 10.5 (256 A100) 17.1 (1792 A100) 5 10 15 20 25 Time to Train (Minutes) 28.7 (16 TPUv3) 30 0 NVIDIA A100 NVIDIA V100 ■Google TPUv3 Huawei Ascend 35 56.7 (16 TPUv3) 40 X = No result submitted MLPerf 0.7 Performance comparison at Max Scale. Max scale used for NVIDIA A100, NVIDIA V100, TPUV3 and Huawei Ascend for all applicable benchmarks. | MLPerf ID at Scale: : Transformer: 0.7-30, 0.7-52, GNMT: 0.7-34, 0.7-54, ResNet-50 v1.5: 0.7-37, 0.7-55, 0.7-1, 0.7-3, SSD: 0.7-33, 0.7-53, BERT: 0.7-38, 0.7-56, 0.7-1, DLRM: 0.7-17, 0.7-43, Mask R-CNN: 0.7-28, 0.7-48, MiniGo: 0.7-36, 0.7-51 | MLPerf name and logo are trademarks. See www.mlperf.org for more information.#23Speedup Over V100 NVIDIA A100 SETS ALL 8 PER CHIP AI PERFORMANCE RECORDS 3x 2x 1x 0.7X 1.2X 1.5X Relative Speedup Commercially Available Solutions 2.0X 2.0X 1.9X 1.6X 2.5X 2.4X 2.4X 1.0X 1.0X 1.0X 1.0X 1.0X 1.0X 1.0X 1.0X 0.9X Ox Image Classification ResNet-50 v.1.5 X NLP BERT XX Object Detection (Heavy Weight) Mask R-CNN XX Reinforcement Learning XX MiniGo Object Detection (Light Weight) SSD XX Translation (Recurrent) XX XX Translation GNMT (Non-recurrent) Transformer Recommendation DLRM X = No result submitted Huawei Ascend TPUv3 V100 A100 Per Chip Performance arrived at by comparing performance at same scale when possible and normalizing it to a single chip. 8 chip scale: V100, A100 Mask R-CNN, MiniGo, SSD, GNMT, Transformer. 16 chip scale: V100, A100, TPUV3 for ResNet-50 v1.5 and BERT. 512 chip scale: Huawei Ascend 910 for ResNet-50. DLRM compared 8 A100 and 16 V100. Submission IDs: ResNet-50 v1.5: 0.7-3, 0.7-1, 0.7-44, 0.7-18, 0.7-21, 0.7-15 BERT: 0.7-1, 0.7-45, 0.7-22, Mask R-CNN: 0.7-40, 0.7-19, MiniGo: 0.7-41, 0.7-20, SSD: 0.7-40, 0.7-19, GNMT: 0.7-40, 0.7-19, Transformer: 0.7-40, 0.7-19, DLRM: 0.7-43, 0.7-17| MLPerf name and logo are trademarks. See www.mlperf.org for more information.#24GPU-ACCELERATED APACHE SPARK 3.0 Built on Foundations of RAPIDS NVIDIA accelerates Spark, the world's leading data analytics platform used by more than 500k data scientists and 16k enterprises worldwide Makes end-to-end acceleration of the entire data science workload possible for the first time, unlocking new markets The performance gains in Spark 3.0 enable data scientists to train models with larger datasets and retrain models more frequently, enhancing model accuracy Using NVIDIA-accelerated Spark 3.0, Adobe achieved a 7x performance improvement and 90% cost savings Data Sources Spark 3.0 Data Preparation Spark Model Training XGBoost | TensorFlow PyTorch RAPIDS Accelerator for Apache Spark GPU Powered Cluster databricks Spark Orchestrated CLOUDERA amazon EMR Bo Google Cloud Dataproc Microsoft Azure Now Available on Leading Cloud Analytics Platforms 24 24 NVIDIA.#25MERCEDES-BENZ & NVIDIA TO JOIN FORCES FOR SOFTWARE-DEFINED VEHICLES ACROSS NEXT-GEN FLEET Software-Defined, Upgradeable Computing Architecture ■ High-end NVIDIA DRIVE AGX Orin platform (200 TOPS) and sensors standard in every next-gen vehicle Complete NVIDIA DRIVE Software stack Full address-to-address autopilot, valet parking and more future applications still to be imagined Backed by Teams of Al and Software Engineers Perpetually upgradeable machine receives continuous improvement through OTA for Mercedes- Benz vehicles New safety and convenience features continually roll out across future Mercedes-Benz fleet Unlocks New Disruptive Business Models ■ Customers to purchase features and services at POS and throughout Mercedes-Benz vehicles' life cycle ■ Mercedes-Benz customer joy and value increase throughout vehicle' life cycle "I MERCEDES-BENZ AND NVIDIA SIGN A DEAL TO MAKE CARS MORE LIKE IPHONES" BARRON'S#26BMW SELECTS NVIDIA ISAAC PLATFORM TO REDEFINE FACTORY LOGISTICS BMW Group announced it is redefining factory logistics with NVIDIA's Isaac robotics platform Isaac SDK provides a comprehensive set of tools, libraries, reference robot applications, pre-trained DNN algorithms and transfer learning toolkit to adapt the deep neural networks to different robots Robot fleets powered by Isaac on NVIDIA EGX will automate manufacturing CHOCO INING 0 0 B M W#27NVIDIA OVERVIEW#28NVIDIA - A COMPUTING PLATFORM COMPANY Headquarters: Santa Clara, CA Headcount: 17,500 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 Al lifts off. NVIDIA's platform is installed in several hundred million computers, is available in every cloud and from every server maker, powers 333 of the TOP500 supercomputers, and boasts 2 million developers.#29NVIDIA AT A GLANCE Accelerated Computing Pioneer Revenue by Market Platform Brief History 1993: Founded by Jensen Huang, Chris Malachowsky, and Curtis Priem 1999: IPO on NASDAQ at $12 (prior to 4 stock splits, now 12:1) 2001: Xbox win; fastest semiconductor company to reach $1B in sales 2006: Unveils CUDA architecture, expanding to scientific computing 2009: Inaugural GPU Technology Conference (GTC) 2016: Introduces first products for Al and autonomous driving $11.7B $6.9B $10.9B ■Gaming $9.7B $4.8B ■Data Center $6.9B $5.0B ■ ProViz Auto FY16 FY17 FY18 FY19 FY20 F1H20 F1H21 ■ OEM/IP Recognitions Harvard Business Review's The CEO 100 Fortune's Best Places to Work MIT Tech Review's 50 Smartest Companies Fortune's World's Most Admired Companies Forbes JUST 100 Best Corporate Citizens Dow Jones Sustainability Index From Chip Vendor to Computing Platform GAMING HPC PRO VIZ ΑΙ Health- care Trans- portation Smart City/IOT Robotics 1999 GM 30%+ GTX 980Ti 2014 GM 50%+ CUDA-X CUDA 11 ARCHITECTURE SYSTEMS DATA CENTER F1H21 GM 60%+ 29 NVIDIA.#30w Gaming GROWTH DRIVERS >>1-1-1- NVIDIA ΑΙ AR/VR Self-driving Cars 30 NVIDIA.#31OUR CORE BUSINESSES FY20 Revenue $5.52B, 3-year CAGR of 11% Strong market position and technology leadership Compounded long-term unit and ASP growth 200M+ gamers on our platform Strong Gaming ecosystem Multiple secular growth drivers: expanding population of gamers, eSports, VR, rising production value of games, gaming and prosumer laptops FY20 Revenue of $2.98B, 3-year CAGR of 53% Leader in deep learning/Al used by all major cloud computing providers and thousands of enterprises - Leader in HPC in 8 of the top 10 and 2/3rds of the top 500 fastest supercomputers Multiple secular growth drivers: fast growing adoption of Al in every major industry; rising compute needs unmet by conventional approaches such as x86 CPUs; Mellanox networking FY20 Revenue of $1.21B, 3-year CAGR of 13% 90%+ market share in graphics for workstations Diversified end markets, e.g. media & entertainment, architecture, engineering & construction, public sector Strong software ecosystem Multiple secular growth drivers: expanding creative & design workflows, mobile workstations, rising adoption of AR/VR across industries FY20 Revenue of $700M, 3-year CAGR of 13% Current revenue driven largely by infotainment Future growth expected to be driven largely by Autonomous Vehicle (AV) solution offering full hardware & software stack Large secular growth opportunity: autonomous vehicles estimated to drive a $25B TAM for the AV computing stack by 2025 Gaming 51% of FY20 Rev Data Center 27% of FY20 Rev Professional Visualization 11% of FY20 Rev Automotive 6% of FY20 Rev ASP = Average Selling Price. Gamers are defined as consumers who purchase our GPUs to play video games. 200M+ gamers on our platform as of August 2020. FY20 ended 1/26/2020. 31 NVIDIA.#32STRONG, PROFITABLE GROWTH 6 17 F1H16 7 00 15 54 F1H21 Revenue ($M) Gross Margin Operating Margin Revenue ($M) Gross Margin Operating Margin 12,000 80% 8,000 85% 4 7,000 10,000 70% 62% 63% 43 59% 60% 6,000 66% 70% 8,000 57% 60% 5,000 60% 6,000 50% 4,000 55% 42 4,000 37% 38% 3,000 40% 34% 32% Gaming ■ Data Center ■ProViz Auto ■ OEM / IP Business Mix (%) ■Gaming 2,000 39% 40% Data Center 2,000 30% 1,000 ■ ProViz 22% 28% Auto 0 20% 0 25% ■ OEM / IP FY16 FY17 FY18 FY19 FY20 F1H20 F1H21 Sustained Profitability (showing non-GAAP margins) Refer to Appendix for reconciliation of Non-GAAP measures 32 NVIDIA.#33WHY ACCELERATED COMPUTING? Advancing Computing in the Post-Moore's Law Era The world's demand for computing power continues to grow exponentially, yet CPUs are no longer keeping up as Moore's Law has ended. NVIDIA pioneered GPU-accelerated computing to solve this challenge. Optimizing across the entire stack - from silicon to software - allows NVIDIA to advance computing in the post-Moore's Law era for large and important markets: Gaming, Pro Viz, High Performance Computing (HPC), Al, Cloud, Transportation, Healthcare, Robotics, and the Internet of Things (IOT). 107 GPU PERFORMANCE 105 103 CPU PERFORMANCE 1980 1990 2000 2010 2020 33 33 NVIDIA.#34WORLD LEADER IN ACCELERATED COMPUTING Our Four Market Platforms & Key Brands NVIDIA NVIDIA Gaming GeForce GPUs for PC Gamers Data Center DGX/HGX/EGX for HPC/AI compute Mellanox for networking VETS Professional Visualization Auto Quadro for Workstations DRIVE for Autonomous Vehicles 44 34 NVIDIA.#35GAMING GeForce - The World's Largest Gaming Platform $6,246 18% CAGR $5,513 $5,518 $2,818 $4,060 FY16 FY17 FY18 FY19 FY20 Revenue ($M) #1 in PC gaming with more than 3X the revenue of the other major GPU vendor Expanding the market with gaming laptops and cloud gaming Powering the Nintendo Switch console Highlights RTX 208 FORTNITE น WARCRAFT BATTLEFIELD grand Ghert UGO PUNCERT 200M+ Gamers on GeForce 35 NVIDIA.#36$339 $830 DATA CENTER High Performance Computing (HPC) and Al 2.0M $2,932 $2,983 72% CAGR $1,932 1.5M 1M 500K 0 aws Alibaba Cloud ▲ Azure Baidu Cloud Google Cloud Platform IBM Cloud 6% NVIDIA Share of New Top 500 Systems 41% 34% 24% 67% SC16 FY16 FY17 FY18 FY19 FY20 0 2005 ORACLE CLOUD Tencent Cloud 2010 2015 2020 Revenue ($M) Registered NVIDIA Developers Every Major Cloud Provider SC17 SC18 SC19 SC20 In 8 of top 10 Supercomputers Worldwide; #1 in US and Europe SC20 Results Include MLNX 90%+ Share of Accelerators in Supercomputing 36 NVIDIA.#37PROFESSIONAL VISUALIZATION Workstation Graphics AUTODESK ARNOLD AUTODESK MAYA AUTODESK FLAME Accelerated Rendering D blender DS RENDER DAZ STUDIO S CATIA Dn DENDIO5 ENSCAPE GICIDO Foundry ANSYS SPEOS $1,212 13% CAGR $1,130 $934 $835 $750 (N) MODO KeyShot NVIDU NOTCH Builder Lr Iray octane ender REDSHIFT Remington SIEMENS NX BS SOLIDWORKS Visualize SUBSTANCE ALCHEMIST SUBSTANCE DESIGNER SUBSTANCE PAINTER COTHEA unity (ir) FY16 FY17 FY18 FY19 FY20 v-ray VRED weta UNREAL Revenue ($M) 50+ Applications Unlocking New Markets Simulation and Sci Viz QUADRO AR/VR Virtual Workstations Data Science 40M Designers and Creatives 32 37 NVIDIA.#38$320 AUTO Infotainment and Autonomous Vehicles 80 60 $700 22% CAGR 70 $641 $558 60 60 $487 50 40 40 30 20 20 42 26 24 15 76 TOYOTA KE23097 VOLVO 33 10 7 0 Robo FY16 FY17 FY18 FY19 FY20 Cars Trucks Tier 1s taxis Mapping Sensors Software Revenue ($M) NVIDIA DRIVE Partners MERCEDES-BENZ Continental DIDI ZF ● 滴滴 XPENG busindle TECH MACE 图森 u Simple Strong Partnership / Ecosystem 38 NVIDIA.#39LARGE AND DIVERSE CUSTOMER BASE Reaching Hundreds of Millions of End Users Through Hundreds of Customers Reaching 200M+ PC gamers Cloud aws Alibaba Group Azure > Google Cloud IBM Cloud GRACLE CLOUD Tencent Cloud Every Major PC OEM/ODM Every Major Graphics Card Manufacturer 70 SCHE 40M Designers/Creatives (11) Audi M HPC ORNL Summit LLNL Sierra Piz Daint ABCI Vertical Industry FOXCONN Walmart >< UNITED STATES POSTAL SERVICE 20M Enterprise Users Pro Visualization H Gaming Data Center Largest Customer 11% of Total Revenue Over Past 3 Fiscal Years Auto W VOLVO 39 NVIDIA.#40FINANCIALS#41$mm $mm ANNUAL REVENUE BY MARKET PLATFORM Gaming Data Center $4,060 $2,818 FY16-20 CAGR - 18% $5,513 $6,246 $5,518 $mm $830 $339 FY16-20 CAGR - 72% $1,932 $2,932 $2,983 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 $835 $750 Pro Visualization FY16-20 CAGR - 13% $934 $1,212 $1,130 աաց Auto FY16-20 CAGR - 22% $487 $700 $641 $558 $320 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 41 41 NVIDIA.#42աաց OPERATING CASH FLOW $4,761 $3,743 $3,502 ANNUAL CASH & CASH FLOW METRICS ADJUSTED EBITDA (NON-GAAP) $4,662 $4,110 $3,803 $2,392 $1,305 FY16 FY17 աաց FY18 FREE CASH FLOW $1,496 աաց $1,672 $1,175 FY19 FY20 FY16 FY17 $4,272 $3,143 $2,909 աաց FY18 FY19 FY20 CASH BALANCE $10,897 $6,798 $7,108 $7,422 $5,037 FY16 FY17 FY18 FY19 FY20 FY16 FY17 $1,089 FY18 FY19 FY20 Cash balance is defined as cash and cash equivalents plus marketable securities 42 NVIDIA.#43CONSERVATIVE FINANCIAL POLICY Key Credit Metrics Financial Policy Highlights Historical Debt / Adjusted EBITDA FY20 Commitment to maintain our 1.4 Revenue $10.92B Adjusted EBITDA $4.11B historically modest leverage, consistent with investment grade credit ratings 1.2 1 Free Cash Flow $4.27B 0.8 Disciplined capital return policy Cash & Cash Equivalents and 0.6 $10.90B Marketable Securities Principal Value of Debt $2.00B Solid balance sheet with substantial liquidity, and positive net cash position 0.4 0.2 Net Cash $8.90B 0 Disciplined approach to M&A FY16 FY17 FY18 FY19 FY20 Principal Value of Debt / Adjusted EBITDA 0.5x Source: SEC filings and public disclosures 1 Adjusted EBITDA and Free Cash Flow are Non-GAAP measures. Refer to Appendix for reconciliation of Non-GAAP measures 2 Net Cash is defined as Cash & Cash Equivalents and Marketable Securities less principal value of debt 43 NVIDIA.#44NVIDIA'S COMMITMENT TO ESG Creating a Leading Workplace FAST OMPANY Most Innovative Companies in Al/Machine Learning FAST COMPANY BEST PLACES TO WORK 2020 for LGBTQ Equality 18 COMFORATE EQUALITY INDEX Best Places to Work for LGBT equality HUMAN RIGHTS CAMPAIGN glassdoor 2020 BEST PLACES TO WORK Best Places to Work: Employee's Choice GLASSDOOR FORTUNE 100 BEST COMPANIES TO WORK FOR 2000 100 Best Companies to Work For FORTUNE Tackling Climate Change The GREEN 500 NVIDIA GPUs power 90 percent of the top 30 supercomputers on the Green500 list (as of Nov. 2019). NVIDIA GPUs are 20 to 25 times more energy efficient than traditional CPU servers for Al workloads. CRO 100 Best Corporate Citizens CRO MAGAZINE Dow Jones Sustainability Indexes Dow Jones Sustainability Index MEMBER 65% global electricity use from renewable energy by FY25 44 NVIDIA.#45"NVIDIA GPUS POWER SIX OUT OF THE TEN MOST ENERGY-EFFICIENT MACHINES ON THE TOP500" 8-36 HPCWIRE Accelerated computing is the way forward for powerful & efficient supercomputers NVIDIA GPUs and/or InfiniBand power 8 of top 10 systems on latest TOP500 list Fastest systems in U.S., Europe & China Jiluluns IBM#46RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES#47RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES NON-GAAP ($ IN MILLIONS) OPERATING INCOME (A) GAAP DEPRECIATION & AMORTIZATION AMORTIZATION OF ACQUISITION- RELATED INTANGIBLES ADJUSTED EBITDA FY 2016 $1,125 197 (17) $1,305 FY 2017 $2,221 187 (16) $2,392 FY 2018 $3,617 199 (13) $3,803 FY 2019 $4,407 262 (7) $4,662 FY 2020 $3,735 381 (6) $4,110 A. Refer to Appendix herein for reconciliation of Non-GAAP operating income to GAAP operating income#48RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) NON-GAAP STOCK-BASED PRODUCT OPERATING COMPENSATION WARRANTY INCOME (A) (B) ACQUISITION- RELATED AND OTHER COSTS OTHER (D) GAAP OPERATING INCOME (C) FY 2016 $1,125 (205) (20) (22) (131) $747 FY 2017 $2,221 (248) (16) (23) $1,934 FY 2018 $3,617 (391) (13) (3) $3,210 FY 2019 $4,407 (557) (2) (44) $3,804 FY 2020 $3,735 (844) (30) (15) $2,846 A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of warranty charge associated with a product recall C. Consists of amortization of acquisition-related intangible assets, transaction costs, compensation charges, other credits related to acquisitions, and other costs D. Comprises of legal settlement costs, contributions, and restructuring and other charges#49RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) NON-GAAP OPERATING INCOME STOCK-BASED ACQUISITION- OTHER COMPENSATION RELATED AND GAAP OPERATING (C) (A) OTHER COSTS (B) INCOME 1H FY20 $1,358 (401) (15) (13) $929 1H FY21 $2,721 (598) (479) (17) $1,627 A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges C. Comprises of legal settlement costs#50RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ACQUISITION- STOCK-BASED ($ IN MILLIONS) NON-GAAP COMPENSATION AND OTHER RELATED ITEMS OTHER TAX IMPACT OF ADJUSTMENTS GAAP (C) (A) COSTS (B) Q2 FY2021 Revenue $3,866 $3,866 Gross profit $2,551 (14) (245) (17) | Gross margin 66.0% (0.4) (6.3) (0.5) | Research and development expense $766 228 3 $2,275 58.8% $997 Sales, general and administrative $269 132 226 | | | $627 expense Operating expense $1,035 360 229 $1,624 Operating income $1,516 (374) (474) (17) $651 Net income $1,366 (374) (474) (20) 124 $622 Diluted EPS $2.18 (0.60) (0.76) (0.03) 0.20 $0.99 A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Primarily consists of amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges C. Comprises of legal settlement costs, losses from non-affiliated investments, and interest expense related to amortization of debt discount#51RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) STOCK-BASED NON-GAAP GROSS MARGIN COMPENSATION (A) PRODUCT WARRANTY (B) OTHER (C) GAAP GROSS MARGIN FY 2016 56.8% (0.3) (0.4) 56.1% FY 2017 59.2% (0.2) | (0.2) 58.8% FY 2018 60.2% (0.3) 59.9% FY 2019 61.7% (0.2) FY 2020 62.5% (0.4) (0.3) 61.2% (0.1) 62.0% A. Stock-based compensation charge was allocated to cost of goods sold B. Consists of warranty charge associated with a product recall C. Consists of legal settlement costs#52RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) STOCK-BASED NON-GAAP GROSS MARGIN COMPENSATION (A) ACQUISITION- RELATED ITEMS AND OTHER OTHER (C) GAAP GROSS MARGIN COSTS (B) Q2 FY2020 60.1% (0.3) 59.8% Q3 FY2020 64.1% (0.5) 63.6% Q4 FY2020 65.4% (0.4) | Q1 FY2021 65.8% (0.7) (0.1) 64.9% 65.1% Q2 FY2021 66.0% (0.4) (6.3) (0.5) 58.8% A. Stock-based compensation charge was allocated to cost of goods sold B. Consists of amortization of intangible assets and inventory step-up C. Consists of legal settlement costs#53RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) STOCK-BASED NON-GAAP GROSS MARGIN ACQUISITION- RELATED ITEMS OTHER COMPENSATION (A) AND OTHER (C) GAAP GROSS MARGIN COSTS (B) 1H FY20 59.6% (0.3) (0.2) 59.1% 1H FY21 65.9% (0.5) (3.5) (0.3) 61.6% A. Stock-based compensation charge was allocated to cost of goods sold B. Consists of amortization of intangible assets and inventory step-up C. Consists of legal settlement costs#54RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) NON-GAAP STOCK-BASED PRODUCT OPERATING COMPENSATION WARRANTY MARGIN (B) ACQUISITION- RELATED AND OTHER GAAP OPERATING OTHER COSTS (D) (A) MARGIN (C) FY 2016 22.5% (4.2) (0.4) (0.4) (2.6) 14.9% FY 2017 32.1% (3.6) | (0.2) (0.3) 28.0% FY 2018 37.2% (4.0) FY 2019 37.6% (4.7) | | (0.2) 33.0% (0.4) 32.5% FY 2020 34.2% (7.7) (0.3) (0.1) 26.1% A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of warranty charge associated with a product recall C. Consists of amortization of acquisition-related intangible assets, transaction costs, compensation charges, other credits related to acquisitions, and other costs D. Comprises of legal settlement costs, contributions, and restructuring and other charges#55RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) NON-GAAP OPERATING MARGIN STOCK-BASED ACQUISITION- OTHER COMPENSATION RELATED AND GAAP OPERATING (C) (A) OTHER COSTS (B) MARGIN 1H FY20 28.3% (8.3) (0.3) (0.3) 19.4% 1H FY21 39.2% (8.6) (6.9) (0.3) 23.4% A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges C. Comprises of legal settlement costs#56RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) NET CASH PROVIDED BY OPERATING ACTIVITIES PURCHASES OF PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS FREE CASH FLOW FY 2016 $1,175 (86) $1,089 FY 2017 $1,672 (176) $1,496 FY 2018 $3,502 (593) $2,909 FY 2019 $3,743 (600) $3,143 FY 2020 $4,761 (489) $4,272#57RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK ($ in millions) GAAP gross margin Impact of stock-based compensation expense, acquisition-related costs, and other costs. Non-GAAP gross margin Q3 FY2021 Outlook 62.5% 3.0% 65.5% GAAP operating expenses $1,535 Stock-based compensation expense, acquisition-related costs, and other costs (445) Non-GAAP operating expenses $1,090