#1NVIDIA Investor Presentation Q2 FY24 August 28, 2023#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, market opportunity, demand and growth drivers; CSPs undertaking a generational transition to update their infrastructure for the new era of accelerated computing and Al; enterprises racing to adopt generative Al; our belief that global end demand for gaming has returned to growth; the growing number of GPU cloud providers deploying in volume HGX systems based on our Hopper and Ampere GPU architecture; our expectation that data center supply will increase each quarter through next year; a large upgrade opportunity ahead; the likelihood that the seasonality of the overall gaming market will shift; RTX/DLSS ecosystem continuing to expand; the timing of a desktop workstation refresh; the expanding opportunity in Professional Visualization for RTX technology; the impact of our partnership with MediaTek; our financial outlook, expectation of sequential growth to be driven largely by Data Center, with Gaming and Professional Visualization also contributing, and our expected tax rates for the third quarter of fiscal 2024; the benefits, impact, performance, features and availability of our products and technologies; the benefits, impact, features and timing of our collaborations or partnerships; NVIDIA accelerated computing being broadly recognized as the way to advance computing as Moore's law ends; accelerated computing being needed to tackle the most impactful opportunities of our time; NVIDIA's expanding accelerated computing ecosystem; NVIDIA's value to every stakeholder in the ecosystem; Al as the greatest technology force of our time; generative Al unlocking new opportunities; data centers across industries becoming Al factories; the next wave of Al being robotics and industrial digitalization, and Omniverse being essential for robotics; NVIDIA's acceleration stacks and ecosystems helping to bring Al to the world's largest industries; NVIDIA's Al expertise and scale helping to revolutionize businesses; NVIDIA software and services enabling the world's enterprises to revolutionize industries with Al; the cost and time-to-solution savings of application speed-ups; our dividend program plan; our Automotive design win pipeline, ramp and production expectations; our aim to engage manufacturing suppliers and goal of effecting supplier adoption of science-based environmental targets by fiscal 2026; and our plan for 100% renewable electricity for our operations and data centers by fiscal 2025 and annually thereafter are forward-looking statements. 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 most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Copies of reports we file with the SEC are posted on our website and are available from NVIDIA without charge. Many of the products and features described herein remain in various stages and will be offered on a when-and-if-available basis. The statements within are not intended to be, and should not be interpreted as a commitment, promise, or legal obligation, and the development, release, and timing of any features or functionalities described for our products is subject to change and remains at the sole discretion of NVIDIA. NVIDIA will have no liability for failure to deliver or delay in the delivery of any of the products, features or functions set forth herein. NVIDIA uses certain non-GAAP measures in this presentation including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non- GAAP operating margin, non-GAAP net income, non-GAAP diluted earnings per share, and free cash flow. 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”. NVIDIA#3Content Q2 FY24 Earnings Summary Key Announcements This Quarter NVIDIA Overview Financials Reconciliation of Non-GAAP to GAAP Financial Measures NVIDIA#4Q2 FY24 Earnings Summary#5Highlights • 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 Al platforms CSPs are undertaking a generational transition to upgrade their infrastructure for the new era of accelerated computing and Al • Consumer internet companies' investments in Al purpose-built data center infrastructure are already generating significant returns Enterprises are racing to deploy generative Al, driving strong consumption of NVIDIA-powered instances in the cloud, as well as demand for on-prem infrastructure Strong Gaming growth fueled by GeForce RTX 40 Series GPUs for laptops and desktops End-customer demand was solid, and consistent with seasonality; believe global end demand has returned to growth Laptop GPUs posted strong growth in the key back-to-school season, led by RTX 4060 GPUs Launched GeForce RTX 4060 and 4060 Ti GPUs for desktops, bringing Ada Lovelace down to price points as low as $299 NVIDIA#6Revenue($M) -Non-GAAP GM Q2 FY24 Financial Summary 66.1% 66.8% $7,192 $5,931 $6,051 56.1% $6,704 И 45.9% $13,507 71.2% GAAP Non-GAAP Q2 FY24 Y/Y Q/Q Q2 FY24 Y/Y Q/Q Revenue $13,507 +101% +88% $13,507 +101% +88% Gross Margin 70.1% +26.6 pts +5.5 pts 71.2% +25.3 pts +4.4 pts Operating Income $6,800 +1,263% +218% $7,776 +487% +155% Net Income $6,188 +843% +203% $6,740 +422% +148% Diluted EPS $2.48 +854% +202% $2.70 +429% +148% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Cash Flow from Ops $6,348 +400% +118% $6,348 +400% +118% All dollar figures are in millions other than EPS. Refer to Appendix for reconciliation of Non-GAAP measures. NVIDIA#7$4,284 $3,806 $3,833 $3,616 Data Center 171% Y/Y and 141% Q/Q $10,323 Highlights Data Center compute revenue nearly tripled year-on-year, driven primarily by accelerating demand from cloud service providers and large consumer internet companies for our HGX platform AWS, Google Cloud, Meta, Microsoft Azure, and Oracle Cloud and a growing number of GPU cloud providers are deploying in volume HGX systems based on our Hopper and Ampere GPU architecture Expect supply to increase each quarter through next year Data Center networking revenue almost doubled year-on-year, driven by our end-to-end InfiniBand networking platform BlueField-3 DPU is in qualification with all major OEMs and ramping across multiple CSPs and consumer internet companies Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Revenue ($M) NVIDIA#8$2,042 $1,574 $1,831 $2,240 Gaming 22% Y/Y and 11% Q/Q $2,486 Highlights Growth fueled by GeForce RTX 40 series GPUs for laptops and desktops Large upgrade opportunity ahead: just 47% of installed base have upgraded to RTX; ~20% have a GPU with RTX 3060 or higher NVIDIA GPU-powered laptops have gained in popularity; shipments now outpace desktop GPUs in several regions around the world Likely to shift overall Gaming seasonality a bit, with Q2 and Q3 stronger, reflecting the back-to-school and holiday build schedules RTX/DLSS ecosystem continues to expand; 35 new games added DLSS support, including Diablo IV and Baldur's Gate 3; there are now over 330 RTX accelerated games and apps Bringing generative Al to gaming with NVIDIA Avatar Cloud Engine (ACE) for Games Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Revenue ($M) NVIDIA#9$496 $200 $226 Professional Visualization $295 ↑ 28% Q/Q 24% Y/Y $379 Highlights Ada architecture ramp drove strong growth, rolling out initially in laptop workstations Desktop workstations refresh coming in Q3 Powerful new RTX systems with up to 4 NVIDIA RTX 6000 GPUs, configured with NVIDIA AI Enterprise or NVIDIA Omniverse Enterprise Three new desktop workstation GPUs based on the Ada generation: NVIDIA RTX 5000, 4500, and 4000 New workloads in gen AI, LLM development and data science are expanding the opportunity in Pro Viz for RTX technology Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Revenue ($M) NVIDIA#10$220 $251 Automotive $294 $296 15% Y/Y 15% Q/Q $253 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Revenue ($M) Highlights Solid y/y growth driven by ramp of self-driving platforms based on NVIDIA DRIVE Orin SoC with several new energy vehicle makers Sequential decline reflects lower overall automotive demand, particularly in China Announced that NVIDIA DRIVE Orin is powering the new XPENG G6 Coupe SUV's intelligent advanced driver assistance system Partnered with MediaTek, which will develop automotive SoCs and integrate a new product line of NVIDIA's GPU chiplets NVIDIA#11$1,270 $392 $2,249 Sources & Uses of Cash $2,911 400% Y/Y and 118% Q/Q $6,348 Highlights Y/Y and Q/Q growth were both driven by higher revenue 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 in gross cash and $9.8B in debt; $6.2B in net cash • Additional $25B in stock repurchases authorized, adding to $4B that remained as of end of Q2 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Cash Flow from Operations ($M) Gross cash is defined as cash/cash equivalents & marketable securities. Debt is defined as principal value of debt. Net cash is defined as gross cash less debt. NVIDIA#12Revenue Gross Margins Operating Expense Other Income & Expense Tax Rate Refer to Appendix for reconciliation of Non-GAAP measures. Q3 FY24 Outlook $16.0 billion, plus or minus 2% Expect sequential growth to be driven largely by Data Center, with Gaming and Pro Viz also contributing 71.5% GAAP and 72.5% non-GAAP, plus or minus 50 basis points Approximately $2.95 billion GAAP and $2.00 billion non-GAAP Income of approximately $100 million for GAAP and non-GAAP Excluding gains and losses on non-affiliated investments 14.5% GAAP and non-GAAP, plus or minus 1%, excluding discrete items NVIDIA#13Key Announcements This Quarter#14NVIDIA 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 Al and HPC applications like Gen Al, deep recommenders, and vector databases GH200 delivers order-of-magnitude speed-ups compared to x86 CPUs 9X for vector databases 12X for deep recommender inference 284X for LLM (65B parameter) inference Available now from leading server manufacturers NVIDIA and SoftBank are collaborating on a platform based on GH200 for Gen Al and 5G/6G NVIDIA® 1111: 11 BOA#15NVIDIA® DGX GH200 Al Supercomputer Extends the Frontier of LLMs DGX GH200 is a new class of large-memory Al 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 giant next-gen Gen Al language models, recommender systems and data analytics workloads The NVIDIA NVLink Switch System enables all 256 GPUs in a DGX GH200 to work together as one Google Cloud, Meta and Microsoft are among the first to gain access to the DGX GH200 DGX GH200 supercomputers are expected to be available by the end of calendar 2023#16NVIDIA 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 petaflops of Al performance and 282 gigabytes of HBM3e memory Delivers up to 3.5X more memory capacity and 3X more bandwidth than its predecessor Built for the most complex Gen Al workloads, LLMs, recommender systems and vector databases Servers from leading manufacturers using the next generation Grace Hopper platform with HBM3e are expected to be available in Q2 of calendar 2024 NVIDIA® O#17NVIDIA® New NVIDIA L40S GPU for Gen Al and Industrial Digitalization NVIDIA L40S is a universal data center processor designed to accelerate the most compute-intensive applications, including Al training and inference 3D design and visualization video processing industrial digitalization Available from leading server makers in a broad range of platforms, including NVIDIA OVX and NVIDIA Al-ready servers with NVIDIA BlueField DPUs, beginning this quarter NVIDIA UAIDIV#18NVIDIA® 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 applications Slashes development costs by up to three-quarters and reduces development time by two-thirds to just six months Extends NVIDIA accelerated computing into virtually every server segment of the $1T installed base of data center infrastructure Will be adopted by ASRock Rack, ASUS, GIGABYTE, Pegatron, QCT and Supermicro#19Spectrum-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 Al clouds Combines NVIDIA Spectrum-4 switch, with NVIDIA BlueField-3 DPU, NVIDIA LinkX, and NVIDIA software The world's first Ethernet switch platform for Al NVIDIA DOCA for BlueField DPU programmability Spectrum-X achieves 1.7X better Al performance and power efficiency vs. traditional Ethernet Shipping this quarter NVIDIA® الت#20NVIDIA® NVIDIA AI Announcements to Help Accelerate the Adoption of Custom Gen Al by Enterprises • NVIDIA AI Workbench - a unified, easy-to-use workspace that allows developers to quickly create, test and customize pretrained Gen Al models on a PC or workstation - then scale them to virtually any data center, public cloud or NVIDIA DGX Cloud NVIDIA AI Enterprise 4.0 - the latest version of our enterprise software platform now includes support for NVIDIA NeMo, our cloud-native framework for creating and customizing LLM applications, providing a foundation for production-ready Gen Al for customers NVIDIA DGX Cloud Integration in Hugging Face partnership to give developers one-click access to NVIDIA DGX Cloud Al supercomputing within the Hugging Face platform to train and tune advanced Al models <!DOCTYPE html> <html lang="en"> <head> <meta charset="UTF- <title>Page name</* <meta name="descri <meta name="keywor </head> <body> <div class="feat <header class= <div class=" <nav clas What's the definition of a large language model? A bustling metropolis at sunset with intricately designed buildings and a water element. A large language model is a type of artificial intelligence system that has been trained on massive amounts of text data and can generate human-like language responses to input.#21NVIDIA® VMware and NVIDIA Unlock Generative Al for Enterprises Announced a major new enterprise offering called VMware Private Al Foundation with NVIDIA • VMware Private Al Foundation is a fully integrated platform featuring NVIDIA AI software and accelerated computing with multi-cloud software for enterprises running VMware Gives enterprises access to infrastructure, Al and cloud management software needed to customize models and run Gen Al apps such as intelligent chatbots, assistants, search and summarization NVIDIA AI Enterprise-ready servers are fully optimized for VMware Cloud Foundation and Private Al Foundation Nearly 100 configurations will soon be available from Dell, HPE, and Lenovo NVIDIA vmware R Ⓡ#22NVIDIA® Snowflake and NVIDIA Team to Help Businesses Harness Their Data for Gen Al in the Data Cloud Partnership with Snowflake to provide businesses with an accelerated path to create customized Gen Al applications using their own proprietary data, all securely within the Snowflake Data Cloud With the NVIDIA NeMo platform for developing LLMs and NVIDIA GPU-accelerated computing, Snowflake will enable enterprises to make custom LLMs for advanced Gen Al services, including chatbots, search and summarization NVIDIA R snowflake R#23NVIDIA® WPP Partners With NVIDIA to Build Gen Al-Enabled Content Engine for Digital Advertising a beautiful desert sky late in the evening NVIDIA and WPP are developing a content engine that harnesses NVIDIA Omniverse and Al to enable creative teams to produce high-quality commercial content faster, more efficiently and at scale The engine connects an ecosystem of 3D design, manufacturing and creative supply chain tools This includes Adobe Firefly, a family of creative Gen Al models, and exclusive visual content from Getty Images created using NVIDIA Picasso, a foundry for custom Gen Al models for visual design Soon available exclusively to WPP's clients around the world#24New NVIDIA RTX Ada GPUs to Power Workstations for Gen Al and LLM, Content Creation, Data Science NVIDIA® 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 TFLOPS of Al performance and 192GB of GPU memory Can be configured with NVIDIA AI Enterprise or Omniverse Enterprise Three new desktop workstation Ada GPUs — NVIDIA RTX 5000, 4500 and 4000 Up to 2X the RT core throughput and up to 2X faster Al training performance versus prior gen NVIDIA RTX 5000 GPU available now; NVIDIA RTX 6000, 4500 and 4000 GPUs available in the fall Al Art Generator Al Image Generator TEXT TO IMAGE prompt a frog in the foreground, in the rain forest, side view, high contrast, vibrant colors, resolution, photo-realistic IMAGE TO IMAGE Upload your image, select a style, and transform Drag and drop image or Brouse Select style IMAGE DIMENSION Width x Height of the image Generate 512 512#25NVIDIA® 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 Scene Description (Open USD) Enable developers and content creators to describe, compose, and simulate large-scale 3D projects and build 3D-enabled products and services with greater interoperability of 3D tools and data NVIDIA Omniverse is built on OpenUSD AOUSD Alliance for OpenUSD#26NVIDIA® New NVIDIA Generative Al 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 fully path-traced rendered images and generates renders with Omniverse Cloud DeepSearch - LLM agent enabling fast semantic search through massive databases of untagged assets • USD-GDN Publisher - one-click service for publishing and streaming high-fidelity, Open USD-based experiences through NVIDIA's Graphics Delivery Network OpenUSD Stage SS Data Layer Stacks Stove Root FX Rigging Shading Geometry#27MediaTek Partners With NVIDIA to Transform Automobiles With Al 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 Al software will enable new experiences, enhanced safety and new connected services The chiplets are connected by an ultra-fast and coherent chiplet interconnect technology MediaTek will run the NVIDIA DRIVE OS, DRIVE IX, CUDA and TensorRT software on these new SoCs The partnership covers a wide range of vehicle segments, from luxury to entry-level • NVIDIA® 4000 65 MAP NAVIGATION 00 19410 ' PAYIN#28NVIDIA Overview#29NVIDIA 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 Al lifts off. NVIDIA's platform is installed in several hundred million computers, is available in every cloud and from every server maker, powers 74% of the TOP500 supercomputers, and boasts over 4 million developers. Headquarters: Santa Clara, CA ここ#30NVIDIA® 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). S = || 1 (1 − p) + Р S Not just a superfast chip - accelerated computing is a full-stack combination of: Chip(s) with specialized processors Algorithms in acceleration libraries Domain experts to refactor applications To speed-up compute-intensive parts of an application. For example: If 90% of the runtime can be accelerated by 100X, the application is sped up 9X If 99% of the runtime can be accelerated by 100X, the application is sped up 50X If 80% of the runtime can be accelerated by 500X, or even 1000X, the application is sped up 5X OOOOOOOO#31NVIDIA® Why Accelerated Computing? Advancing computing in the post-Moore's Law era Accelerated computing is needed to tackle the most impactful opportunities of our time—like Al, climate simulation, drug discovery, ray tracing, and robotics. NVIDIA is uniquely dedicated to accelerated computing ―working top-to-bottom-refactoring applications and creating new algorithms, and bottom-to-top-inventing new specialized processors, like RT Core and Tensor Core. "It's the end of Moore's Law as we know it." - John Hennessy Oct 23, 2018 "Moore's Law is dead." - Jensen Huang, GTC 2013 Trillions of Operations per Second (TOPS) 109 108 107 GPU-Computing perf 2X per year 106 105 104 103 102 Single-threaded CPU perf 1980 1990 1.5X perf per year 1.1X per year 1000X In 10 years 2000 2010 2020 2030#32AI APPLICATION FRAMEWORK VOICE NVIDIA's Accelerated Computing Platform Full-stack innovation across silicon, systems and software MODULUS MONAI RIVA MAXINE NEMO MERLIN CUOPT MORPHEUS TOKKIO AVATAR DRIVE ISAAC PLATFORMS cuNumeric NVIDIA HPC CV-CUDA cuQuantum NVIDIA AI Parabricks Sionna Jetpack IGX NVIDIA Omniverse BUS VAN AN MOTORBIKE BUS PEDESTRI CYCLIST METROPOLIS HOLOSCAN 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. Accelerated computing is a full-stack challenge, demanding deep understanding of the problem domain, optimizing across every layer of computing, and all three chips GPU, CPU, and DPU. Scaling across multi-GPUs and multi-nodes is a data center-scale challenge and requires treating the network and storage as part of the computing fabric. Our platform extends from PCs to supercomputing centers, enterprise data centers, cloud and edge environments. ACCELERATION LIBRARIES RAPIDS Spark cuDNN cuGraph TensorRT Triton Deepstream Flare CLOUD-TO-EDGE DATACENTER-TO- ROBOTIC SYSTEMS 3-CHIPS DOCA Mag 10 Aerial RTX DGX HGX EGX OVX Super POD AGX GPU CPU DPU NVIDIA#33NVIDIA's Expanding Accelerated Computing Ecosystem 300 Libraries 400 AI Models Developers 1.8M 4M CUDA Downloads* 40M 20M 2020 2023 2020 2023 *Cumulative 100 Updated in the Last Year Al Startups GPU-Accelerated Applications 14K 3,000 700 6K 2020 2023 2020 2023 NVIDIA#34NVIDIA's Multi-Sided Platform and Flywheel NVIDIA is valued by every stakeholder in the ecosystem: For developers - NVIDIA's one Architecture and large installed base give developer's software the best performance and greatest reach For computer makers and CSPS - NVIDIA's rich suite of Acceleration Platforms lets partners build one offering to address large markets including media & entertainment, healthcare, transportation, energy, financial services, manufacturing, retail, and more For customers - NVIDIA is offered by virtually every computing provider and accelerates the most impactful applications from cloud to edge For NVIDIA - Deep engagement with developers, computing providers, and customers in diverse industries enables unmatched expertise, scale, and speed of innovation across the entire accelerated computing stack - propelling the flywheel Full-Stack Expertise and Scale CUDA Installed Base NVIDIA Accelerated Computing Demand and New Opportunities 4 Million Developers Wealth of Accelerated Apps Global Computer Makers and CSPs 35,000 Organizations Across Industries 100's of Systems CSPs Worldwide Full-Stack Acceleration for Largest Industries NVIDIA#35Full-Stack & Data Center Scale Acceleration Drive Significant Cost Savings and Workload Scaling Classical Computing―960 CPU-only servers $10M (including switches, cables, racks) Application CPU server racks LLM Workload: Bert-Large Training and Inference | CPU Server: Dual-EYPC 7763 | GPU Server: Dual-EPYC 7763 + 8X H100 PCle GPUs Accelerated Computing-2 GPU servers $400K Application Re-Engineered for Acceleration CUDA-X Acceleration Libraries Magnum 10 25X lower cost 84X better energy-efficiency NVIDIA#36TRAINING AI FACTORIES Training & Inference - One Architecture Cloud | On-Prem | Edge 8898. 8898. 8898. 8898. 8898. 888 888888 8898. # 8898. 8898.:: 8898. 8898. 8898. B 93888 8808. :: 8898. 8898. 8898. 8898. 888888 IN THE DATA CENTER INFERENCE AT THE EDGE NVIDIA L40 Image Generation NVIDIA L4 Al Video IGX Industrial-Grade System for Healthcare, Logistics, Manufacturing NVIDIA H100 NVL Large Language Models NVIDIA Grace Hopper Recommendation Models AGX Functionally-Safe System for Autonomous Vehicles NVIDIA#37Al Is the Greatest Technology Force of Our Time Data centers across industries will become Al factories Al has fundamentally changed what software can make and how you make software. Companies are processing & refining their data, making Al software-becoming intelligence manufacturers. Their data centers are Al factories. The first wave of Al was learned perception and inference, like recognizing images, understanding speech, recommending a video, or an item to buy. In late 2022, ChatGPT ushered in Generative Al - unlocking new opportunities for Al to generate text, images, video, code, or proteins. The next wave of Al is robotics and industrial digitalization — robots, avatars, and digital twins where Al interacts with the physical world. Contact Center Al 500M Calls / Day - Retail Asset Protection $94.5B Inventory Loss / Year NVIDIA's acceleration stacks and ecosystems help bring Al to the world's largest industries. NVIDIA's world-class Al expertise and scale can help revolutionize businesses. Transportation 10T Miles / Year Meeting Transcription 3B Meeting Minutes / Day Work in Progress Exam: 280674/304 Serie: 14148 Ing. 312/20 L3632 Set 12/11/20 Room 4 05G 12 1Q12 Patient PEDESTRIAN BUS VAN VAN MOTORBIKE BUS PEDESTRIAN CYCLIST CYCLIST VAN CAR Public Safety > 1B Smart City Cameras Deployed ABE Depart 100895734756.04 MBOS.P.0438/24 Medical Imaging 10M Diagnostic Scans / Day Industrial Inspection $32M Vision Sensors Installed by 2025 CREDIT CARD 1234 5678-9012 3454 BASE SOUBANE ON LINE-SHOP YOU MAY ALSO LIKE Rughter Castomer care Shopping Bag SANDALS ADD TO SHOPPING BAG DREAM BOR Credit Card Fraud 1.28B Credit Transactions / Day Product Recommendations 1B E-Commerce Visitors / Day Source: Nilson Report, IHS Markit, Similar Web, NRF, WHO, ABI and NVIDIA internal analysis NVIDIA#38NVIDIA® Advancing Industrial Digitalization Efforts with NVIDIA Omniverse NVIDIA OVX servers | RTX workstations Enterprise software | Cloud services 1.1 SAI WaveSolder BE37S 156 NVIDIA Omniverse is a software platform helping to power industrial digitalization. Our initial focus is on industrial digital twins used to emulate the behavior of products or factories in the physical world. Omniverse uses a real-time, large-scale 3D database that connects to 3D worlds via the USD (Universal Scene Descriptor) framework. Just as the internet connects websites over HTML, Omniverse connects 3D worlds over USD. Omniverse is essential for the next wave of Al-robotics—where Al interacts with the physical world. Applications built to run on Omniverse are like portals into the Omniverse virtual world. FACTORY DIGITAL TWIN DESIGN DIGITAL TWIN ROBOTICS DIGITAL TWIN 0 WAREHOUSE DIGITAL TWIN 37.0 32 PERFORMANCE DIGITAL TWIN AV DIGITAL TWIN NVIDIA OMNIVERSE CLOUD#39NVIDIA Software and Services Enabling the world's enterprises to revolutionize industries with Al NVIDIA-hosted cloud service for training Large Language Models to perform specific task s― e.g., summarize legal documents, write marketing copy, analyze market sentiment, chatbot to support customers, search documents, write and document code, paraphrase. NeMo can help thousands of companies, train language Al's to do hundreds of tasks, in 10's of languages. NVIDIA NeMo LLM NVIDIA-hosted cloud service for training and deploying large biomolecular models that understand the language of chemistry, proteins, RNA, and DNA. BioNeMo can help researchers, biotech, and pharma companies to process chemical and biological datasets to accelerate drug discovery. NVIDIA BioNeMo NVIDIA-hosted cloud service for building generative Al-powered visual applications. Enterprises, software creators, and service providers can run inference on their models, train NVIDIA Edify foundation models on proprietary data, or start from pretrained models to generate image, video, and 3D content from text prompts. Picasso service is fully optimized for GPUs and streamlines training, optimization, and inference. NVIDIA Picasso The operating engine of Al for end-to-end data-driven software development. One engine license accelerates end-to-end modern Al and data science. One engine license unlocks wealth of data processing, Al, and robotics frameworks and applications — e.g., RAPIDS, Spark, Merlin, Monai, Metropolis, cuOpt, Morpheus, Tokkio. A platform for designing, building, and operating 3D and virtual world simulations. Consists of a virtual world engine, USD connectors, and portals browsing the virtual world simulation. Omniverse is an enterprise application that connects architects, designers, hardware and software engineers, marketers, to supply-chain and factory planners. NVIDIA AI Enterprise NVIDIA Omniverse NVIDIA#40NVIDIA Cloud Services Engaging with customers at every layer NEMO CUSTOM AI MODEL MAKING SERVICE NVIDIA Al ON PREM DGX PICASSO PLATFORM-AS-A-SERVICE BIONEMO NVIDIA Omniverse AI INFRASTRUCTURE-AS-A-SERVICE Microsoft ORACLE CLOUD Infrastructure MULTI CLOUD HYBRID CLOUD DGX Cloud Google Cloud Azure NVIDIA#41NVIDIA PARTNERS NVIDIA Go-to-Market Across Cloud and On-Premises Reaching customers everywhere CLOUD DGX Cloud Google Cloud Microsoft Azure ORACLE CLOUD Infrastructure NeMo | Picasso | BioNeMo aws Google Cloud Microsoft Azure ORACLE CLOUD Infrastructure II DELL Technologies ON-PREM 10 DGX Hewlett Packard Enterprise Lenovo === D HGX INFERENCE EGX AGX IGX NVIDIA#42Giant Market Opportunity Gaming Financial Services Healthcare Logistics Manufacturing Retail Transportation 밈 9609 태양 R Gaming Over 3B gamers and creators, a quarter of them spending over $100/year for GPUs in desktops, laptops, cloud or consoles NVIDIA AI Enterprise Software 50M enterprise server installed base; per-server, per-year subscription price Omniverse Enterprise Software Over 45M designers and creators; 10s of millions of digital twins -per-user/digital twin, per-year subscription price Chips and Systems ~20M servers/year-GPUs, CPUs, DPUS, NICs, switches Automotive 100M vehicles/year hardware opportunity; 100s of millions of AV vehicles installed base software opportunity Gaming $100B $1 Trillion Opportunity NVIDIA AI Enterprise Software Omniverse Enterprise Software $150B $150B Automotive Chips & Systems $300B $300B NVIDIA#43$11,716 $10,918 Driving Strong & Profitable Growth Revenue ($M) $16,675 $26,914 $26,974 Operating Income (Non-GAAP, $M) -Operating Margin (Non-GAAP) $15,000 70% $12,690 $12,000 $10,828 60% $9,040 52% $9,000 $6,803 47% 50% $6,000 $4,407 41% $3,735 34% 40% $20,699 $3,000 38% 34% $0 FY19 FY20 FY21 FY22 FY23 30% 1H FY24 FY19 FY20 FY21 FY22 FY23 1H FY24 Fiscal year ends in January. Refer to Appendix for reconciliation of Non-GAAP measures. Operating margins rounded to the nearest percent. 42 1H FY21 44 7 43 1H FY24 70 331 23 Gaming Data Center ProViz Auto OEM & Other FY23 financial metrics reflect a $2.2B charge for inventory and related reserves primarily related to Data Center and Gaming. NVIDIA#44NVIDIA Gross Margins Reflect Value of Acceleration Accelerated computing requires full-stack and data center-scale innovation across silicon, systems, algorithms and applications. Significant expertise and effort are required, but application speed-ups can be incredible, resulting in dramatic cost and time-to-solution savings. For example, 10 NVIDIA HGX nodes with 80 NVIDIA A100 GPUs that cost $4M can replace 920 nodes of CPU servers that cost over $50M for Al inference. NVIDIA chips carry the value of the full-stack, not just the chip. Gross Profit (Non-GAAP, $M) —Gross Margin (Non-GAAP) $17,969 $15,965 $14,417 $10,947 67% 66% $7,233 $6,821 63% 62% 59% 70% FY19 FY20 FY21 FY22 FY23 1H FY24 Cost comparison example based on latest available NVIDIA A100 GPU and Intel CPU inference results in the commercially available category of the MLPerf industry benchmark; includes related infrastructure costs such as networking. FY23 financial metrics reflect a $2.2B charge for inventory and related reserves primarily related to Data Center and Gaming. Fiscal year ends in January. Refer to Appendix for reconciliation of Non-GAAP measures. Gross margins are rounded to the nearest percent. NVIDIA#45$3.1B Strong Cash Flow Generation Free Cash Flow (Non-GAAP) $8.7B $8.0B $4.7B $4.3B $3.8B FY19 FY20 FY21 FY22 FY23 1H FY24 Fiscal year ends in January. Refer to Appendix for reconciliation of Non-GAAP measures. 1 Subject to continuing determination by our Board of Directors. Capital Allocation Share Repurchase $10B repurchased in FY23 Additional $25B in stock repurchases authorized, adding to $4B which remained as of end of Q2 Dividend $398M in FY 2023 Plan to Maintain¹ Strategic Investments Growing Our Talent Platform Reach & Ecosystem NVIDIA#46NVIDIA NVIDIA CP520 HOT/9 COSI NVIDIA Data Center 56% of FY23 revenue Our Market Platforms at a Glance Gaming 33% of FY23 revenue Professional Visualization 6% of FY23 revenue Automotive 3% of FY23 revenue FY23 Revenue $15.0B 5-yr CAGR 51% DGX/HGX/EGX/IGX systems GPU | CPU | DPU | Networking NVIDIA AI software FY23 Revenue $9.1B 5-yr CAGR 10% GeForce GPUs for PC gaming GeForce NOW cloud gaming FY23 Revenue $1.5B 5-yr CAGR 11% Quadro/NVIDIA RTX GPUS for workstations Omniverse software FY23 Revenue $0.9B 5-yr CAGR 10% DRIVE Hyperion sensor architecture with AGX compute DRIVE AV & IX full stack software for ADAS, AV & Al cockpit NVIDIA#47Data Center The leading computing platform for AI, HPC & graphics 51% 5-YR CAGR Through FY23 Revenue ($M) $15,005 $14,607 $10,613 $6,696 الات $2,983 $2.932 FY19 FY20 FY21 FY22 FY23 1H FY24 Leader in AI & HPC #1 in Al training and inference Used by all hyperscale & major cloud computing providers and 35,000 organizations Powers 74% of the TOP500 supercomputers Growth Drivers Rapid Al adoption across industries Full-stack Al | Software Three chip strategy - GPU | CPU | DPU Rising computation requirements for modern Al Data-center scale innovation Omniverse NVIDIA#48Training Compute (petaFLOPS) 1010 109 Modern Al is a Data Center Scale Computing Workload Data centers are becoming Al factories: data as input, intelligence as output Al Training Computational Requirements All Al Models Excluding Transformers: 8X/2yrs Transformer Al Models: 275X/2yrs Megatron-Turing NLG 530B GPT-3 108 Microsoft T-NLG GPT-2 107 Megatron Wav2Vec 2.0 XLNet❤ MoCo ResNet50 106 Xception InceptionV3 105 Resnet Seq2Seq BERT Large GPT-1 Transformer 104 ResNext VGG 19 ELMO DenseNet201 103 AlexNet 102 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fueling Giant-Scale Al Infrastructure NVIDIA compute & networking GPU | DPU | CPU 8896 8898 Large Language Models, based on the Transformer architecture, are one of today's most important advanced Al technologies, involving up to trillions of parameters that learn from text. Developing them is an expensive, time-consuming process that demands deep technical expertise, distributed data center-scale infrastructure, and a full-stack accelerated computing approach. NVIDIA#4910% 5-YR CAGR Through FY23 Revenue ($M) $12,462 $6,246 $5,518 $7,759 Gaming GeForce ― the world's largest gaming platform $9,067 Leader in PC Gaming Strong #1 market position 15 of the top 15 most popular GPUs on Steam Leading performance & innovation 200M+ gamers on GeForce $4,726 Growth Drivers Rising adoption of NVIDIA RTX in games Expanding universe of gamers & creators Gaming laptops & Gen Al on PCs GeForce NOW Cloud gaming FY19 FY20 FY21 FY22 FY23 1H FY24 NVIDIA#50GeForce Extends Growth, Large Upgrade Opportunity GeForce Gaming Revenue 20% CAGR FY20 FY23 3YR CAGR ASP 10% Units 9% More Gamers, Richer Mix Installed Base $699+ Cumulative Sell-Through $ 47% RTX RTX 3060+ 20% RTX3060+ Performance Installed Base Needs Upgrade Source: NVIDIA estimates 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Weeks After Launch NVIDIA Ada NVIDIA Ampere NVIDIA Turing Ada: 3x Turing Ramp at $699+ NVIDIA#5111% 5-YR CAGR Through FY23 Revenue ($M) $2,111 $1,212 $1,130 " $1,053 Professional Visualization Workstation graphics $1,544 Leader in Workstation Graphics 90%+ market share in graphics for workstations 45M Designers and Creators Strong software ecosystem with over 100 supported applications $674 Growth Drivers Ray Tracing and Al revolutionizing design Expanding universe of designers and creators Collaborative 3D design / Omniverse Hybrid work environments FY19 FY20 FY21 FY22 FY23 1H FY24 NVIDIA#5210% 5-YR CAGR Through FY23 Revenue ($M) $700 $641 $536 $566 Automotive Autonomous Vehicles (AV) & Al Cockpit $903 FY19 FY20 FY21 FY22 FY23 Leader in Autonomous Driving Historical revenue driven largely by infotainment Future growth primarily fueled by NVIDIA DRIVE, our AV and Al cockpit platform with full software stack Next-generation DRIVE Thor to ramp in FY26 $549 1H FY24 Growth Drivers Adoption of centralized car computing and software-defined vehicle architectures AV software and services: Mercedes Benz Jaguar Land Rover NVIDIA#532023 XPENG Growing NVIDIA DRIVE Pipeline $14B Design Win Pipeline - 6 Year Horizon JAGUAR LAND- -ROVER כץ = LUCID ZOOX GENESIS ⑧HYUNDAI ки VOLVO Polestar NETA LOTUS Li Auto ► ZEEKR א 11. IM 智己汽车 DiDi JIDU NIO cruise SAIC 上汽集团 SAIC MOTOR V VIN FA ST 7 ROEWE NVIDIA#54Financials#55Annual Cash & Cash Flow Metrics Operating Income (Non-GAAP) — $M 6,803 4,407 3,735 12,690 9,040 Operating Cash Flow - $M 5,822 4,761 3,743 9,108 5,641 FY 19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Free Cash Flow (Non-GAAP) — $M 4,677 4,272 3,143 8,049 Cash Balance - $M 21,208 3,750 10,897 11.561 7,422 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 13,296 FY23 Cash balance is defined as cash and cash equivalents plus marketable securities Refer to Appendix for reconciliation of non-GAAP measures NVIDIA#56Corporate Responsibility Environmentally Conscious By FY26, aim to engage manufacturing suppliers comprising at least 67% of NVIDIA's scope 3 category 1 GHG emissions with goal of effecting supplier adoption of science-based targets NVIDIA GPUs are typically 20X more energy efficient for certain Al and HPC workloads than traditional CPUs 典 Plan to achieve & maintain 100% renewable electricity for our operations and data centers by FY25 and annually thereafter A Place For People To Do Their Life's Work glassdoor BEST PLACES TO WORK 203 "100 Best Companies to Work For" FORTUNE "America's Most Just Companies" CNBC "Most Responsible Companies" NEWSWEEK "Best Places to Work for LGBT Equality" HUMAN RIGHTS CAMPAIGN Management Time Magazine's 100 Most Influential Companies Fast Company's Best Workplaces for Innovators Fortune's World's Most Admired Companies Wall Street Journal's Management Top 250 All-Stars Corporate Governance 43% of Board is Gender, Racially, or Ethnically Diverse 93% of Directors are independent NVIDIA#57Reconciliation of Non-GAAP to GAAP Financial Measures#58Q2 FY24 Reconciliation of Non-GAAP to GAAP Financial Measures Non-GAAP Acquisition-Related and Other Costs (A) Stock-Based Compensation (B) IP-Related Costs Other (C) Tax Impact of GAAP Adjustments $9,614 (119) (31) (2) $9,462 Gross margin ($ in million) 71.2% (0.9) (0.2) 70.1% Operating income $7,776 (137) (842) (2) 5 сл $6,800 ($ in million) Net income $6,740 (137) (842) (2) 66 363 $6,188 ($ in million) Shares used in diluted per share calculation 2,499 2,499 (millions) Diluted EPS $2.70 A. Consists of amortization of intangible assets, transaction costs, and certain compensation charges. B. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense. C. Other comprises of assets held for sale related adjustments and net gains from non-affiliated investments $2.48 NVIDIA#59Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Acquisition-Related and Other Costs Stock-Based Compensation IP-Related Gross Margin Non-GAAP (A) (B) Costs GAAP Q2 FY2023 45.9% (1.8) (0.6) 43.5% Q3 FY2023 56.1% (2.0) (0.5) 53.6% Q4 FY2023 66.1% (2.0) (0.5) (0.3) 63.3% Q1 FY2024 66.8% (1.7) (0.4) (0.1) 64.6% A. Consists of amortization of intangible assets B. Stock-based compensation charge was allocated to cost of goods sold NVIDIA#60Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Gross Margin ($ in Millions & Margin Percentage) Non-GAAP Acquisition-Related and Other Costs (A) Stock-Based Compensation (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 2020 62.5% (0.4) (0.1) 62.0% $10,947 (425) (88) (38) $10,396 FY 2021 65.6% (2.6) (0.5) (0.2) 62.3% $17,969 (344) (141) (9) $17,475 FY 2022 66.8% (1.4) (0.5) 64.9% $15,965 (455) (138) (16) $15,356 FY 2023 59.2% (1.7) (0.5) (0.1) 56.9% $8,636 (214) (76) $8,346 1H FY 2023 57.6% (1.4) (0.5) $14,417 (239) (58) (10) 1H FY 2024 69.7% (1.2) (0.3) 55.7% $14,110 68.2% A. Consists of amortization of intangible assets and inventory step-up B. Stock-based compensation charge was allocated to cost of goods sold NVIDIA#61Acquisition-Related Non-GAAP Acquisition Termination Cost (A) Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Income and Margin ($ in Millions & Margin Percentage) Stock-Based IP-Related Other and Other Costs Compensation GAAP Costs (C) (B) $4,407 (2) (557) (35) (9) $3,804 FY 2019 37.6% (4.7) (0.3) (0.1) 32.5% $3,735 (31) (844) (14) $2,846 FY 2020 34.2% (0.3) (7.7) (0.1) 26.1% $6,803 (836) (1,397) (38) $4,532 FY 2021 40.8% (5.0) (8.4) (0.2) 27.2% $12,690 (636) (2,004) (9) $10,041 FY 2022 47.2% (2.5) (7.4) 37.3% $9,040 (1,353) (674) (2,710) (16) (63) $4,224 FY 2023 33.5% (5.0) (2.5) (10.0) (0.1) (0.2) 15.7% $5,280 (1,353) (324) (1,227) (9) $2,367 1H FY 2023 35.2% (9.0) (2.2) (8.2) 15.8% $10,828 1H FY 2024 52.3% (311) (1.5) (1,576) (10) 10 $8,941 (7.6) 43.2% A. Consists of amortization of acquisition-related intangible assets, inventory step-up, transaction costs, compensation charges, and other costs B. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense C. Comprises of legal settlement costs, contributions, restructuring costs and assets held for sale related adjustments NVIDIA#62Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) ($ in Millions) Free Cash Flow Purchases Related to Property and Equipment and Intangible Assets FY 2019 $3,143 FY 2020 $4,272 600 489 Principal Payments on Property and Equipment and Intangible Assets Net Cash Provided by Operating Activities $3,743 $4,761 FY 2021 $4,677 1,128 17 $5,822 FY 2022 $8,049 976 83 $9,108 FY 2023 $3,750 1,833 58 $5,641 1H FY 2023 $2,171 794 36 $3,001 1H FY 2024 $8,691 537 31 $9,259 NVIDIA#63($ in Millions) Reconciliation of Non-GAAP to GAAP Financial Measures Non-GAAP gross margin Impact of stock-based compensation expense, acquisition-related costs, and other costs GAAP gross margin Q3 FY24 Outlook 72.5% (1.0%) 71.5% Non-GAAP operating expenses Impact of stock-based compensation expense, acquisition-related costs, and other costs GAAP operating expenses $2,000 950 $2,950 NVIDIA#64NVIDIA®