Q1 2015 Nvidia earnings forecast

Q1 2015 Nvidia earnings forecast

• 1. Investor Presentation Q1 FY25 May 28, 2024

• 2. 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; supply for our products; our financial outlook; the benefits, impact, performance, features and availability of our products and technologies; third parties adopting or using our products or technologies; the benefits and impact of our collaborations or partnerships with third parties, and the features and availability of their offerings; sovereign AI revenue opportunity approaching high single digit billions this year, from nothing last year; and game developers embracing NVIDIA Avatar Character Engine to create life-like avatars 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 margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted earnings per share. 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”.

• 3. • Q1 FY25 Earnings Summary • Key Announcements This Quarter • Reconciliation of Non-GAAP to GAAP Financial Measures Content

• 4. Q1 FY25 Earnings Summary

• 5. Highlights Record quarter driven by strong Data Center growth • Total revenue up 262% Y/Y to $26.0B, well above outlook of $24.0B +/- 2% • Data Center up 427% Y/Y to $22.6B • Gaming up 18% Y/Y to $2.6B Record Data Center revenue driven by continued strong demand for the NVIDIA Hopper GPU computing platform • Growth driven by all customer types, led by Enterprise and Consumer Internet; large CSPs represented mid-40% of Data Center revenue • Beyond CSPs, generative AI has expanded to consumer internet, enterprise, sovereign AI, automotive, and healthcare customers • Worked with 100+ customers building AI factories, ranging in size from hundreds to 10s of thousands of GPUs, some reaching 100 thousand • Sovereign AI revenue opportunity can approach high single digit $ billions this year, from nothing last year Gaming end demand and channel inventory remain healthy across the product range • Strong market reception for GeForce RTX 40 SUPER GPUs • With over 100M installed base, GeForce RTX GPUs offer unmatched performance for running generative AI applications on PCs • Game developers are embracing NVIDIA ACE to create life-like avatars Announced a 10-for-1 stock split and 150% dividend increase

• 6. Q1 FY25 Financial Summary All dollar figures are in millions other than EPS. Refer to Appendix for reconciliation of Non-GAAP measures. GAAP Non-GAAP Q1 FY25 Y/Y Q/Q Q1 FY25 Y/Y Q/Q Revenue $26,044 +262% +18% $26,044 +262% +18% Gross Margin 78.4% +13.8 pts +2.4 pts 78.9% +12.1 pts +2.2 pts Operating Income $16,909 +690% +24% $18,059 +492% +22% Net Income $14,881 +628% +21% $15,238 +462% +19% Diluted EPS $5.98 +629% +21% $6.12 +461% +19% Cash Flow from Ops $15,345 +427% +33% $15,345 +427% +33% $7,192 $13,507 $18,120 $22,103 $26,044 66.8% 71.2% 75.0% 76.7% 78.9% 63.0% 68.0% 73.0% 78.0% 83.0% 88.0% 1,500 6,500 11,500 16,500 21,500 26,500 31,500 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Revenue($M) Non-GAAP GM

• 7. Highlights • Compute revenue was $19.4B, up more than 5X Y/Y and 29% Q/Q driven by the NVIDIA Hopper GPU computing platform for training and inferencing LLMs, recommendation engines, and generative AI • Networking revenue was $3.2B, up more than 3X Y/Y on strong InfiniBand growth, and down 5% Q/Q due to the timing of supply • Supply for H100 continued to improve; still constrained on H200 • Blackwell in full production and we are working to bring up our system and cloud partners for global availability later this year • Demand for H200 & Blackwell is well ahead of supply; expect demand may exceed supply well into next year • Expect Auto to be largest vertical within Data Center this year, driving a multi-billion revenue opportunity across on-prem & cloud • Started shipping Spectrum-X Ethernet solution optimized for AI; expect it to be a multi-billion-dollar product line within a year Data Center Revenue ($M) $4,284 $10,323 $14,514 $18,404 $22,563 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 427% Y/Y and 23% Q/Q

• 8. Highlights • Y/Y growth reflects higher demand; Q/Q decrease reflects seasonally lower GPU sales for laptops, consistent with outlook • End demand and channel inventory remain healthy across the product range • GeForce RTX 40 SUPER GPUs market reception is strong • With over 100M installed base, GeForce RTX GPUs are perfect for gamers, creators, and AI enthusiasts, and offer unmatched performance for running generative AI applications on PCs • NVIDIA and Microsoft announced AI performance optimizations for Windows to help run LLMs up to 3x faster on NVIDIA GeForce RTX AI PCs • Top game developers including NetEase Games, Tencent, and Ubisoft are embracing NVIDIA ACE to create lifelike avatars to transform interactions between gamers and non-playable characters Gaming Revenue ($M) $2,240 $2,486 $2,856 $2,865 $2,647 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 8% Q/Q 18% Y/Y

• 9. $295 $379 $416 $463 $427 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Highlights • Y/Y increase primarily reflects higher sell-in to partners following the normalization of channel inventory levels • Q/Q decrease primarily due to desktop workstation GPUs • Generative AI and Omniverse industrial digitalization will drive the next wave of professional visualization growth • Omniverse-powered digital twins enabled Wistron, one of our manufacturing partners, to reduce end-to-end production cycle times by 50% and defect rates by 40% • BYD, the world’s largest electric vehicle maker, is adopting Omniverse for virtual factory planning and retail configurators Professional Visualization Revenue ($M) 8% Q/Q 45% Y/Y

• 10. $296 $253 $261 $281 $329 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Highlights • Y/Y increase driven primarily by self-driving platforms • Q/Q growth driven by the ramp of AI cockpit solutions with global OEM customers and strength in self-driving platforms • Supported Xiaomi in the successful launch of its first electric vehicle – the SU7 sedan built on NVIDIA DRIVE Orin • Announced a number of new design wins on NVIDIA DRIVE Thor with several leading EV makers including BYD, XPENG, GAC’s AION Hyper, and Nuro • DRIVE Thor slated for production vehicles starting next year Automotive Revenue ($M) 11% Y/Y and 17% Q/Q

• 11. $2,911 $6,348 $7,333 $11,499 $15,345 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Highlights • Y/Y increase reflects higher revenue • Q/Q increase reflects higher revenue and lower cash taxes • Utilized cash of $7.8B towards shareholder returns, including $7.7B in share repurchases and $98M in cash dividends • Invested $409M in capex (includes principal payments on PP&E) • Ended the quarter with $31.4B in gross cash and $9.8B in debt; $21.6B in net cash Sources & Uses of Cash Cash Flow from Operations ($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. 427% Y/Y and 33% Q/Q

• 12. Q2 FY25 Outlook Revenue $28.0 billion, plus or minus 2% Expect sequential growth in all market platforms Gross Margins 74.8% GAAP and 75.5% non-GAAP, plus or minus 50 basis points For the full year, expect gross margins to be in the mid-70 % range Operating Expense Approximately $4.0 billion GAAP and $2.8 billion non-GAAP Full-year opex is expected to grow in the low-40 % range Other Income & Expense Income of approximately $300 million for GAAP and non-GAAP Excluding gains and losses on non-affiliated investments Tax Rate 17.0% GAAP and non-GAAP, plus or minus 1%, excluding discrete items Refer to Appendix for reconciliation of Non-GAAP measures.

• 13. Key Announcements This Quarter

• 14. NVIDIA Blackwell and Wave of Data Center Scale Platforms Power the Trillion-Parameter AI Era • NVIDIA Blackwell enables real-time generative AI on trillionparameter large language models at up to 25x lower TCO and energy consumption than its predecessor • Blackwell delivers up to 4x faster training and 30x faster inference than the H100 • The unit of compute for the biggest LLMs is the GB200 NVL72 – a multi-node, liquid-cooled, rack-scale system combining 36 GB200 Superchips to act as a single GPU • Each GB200 connects two NVIDIA B200 GPUs to a Grace CPU • The NVIDIA B200 GPU is the world’s most powerful chip • Composed of two reticle limit dies connected by a 10 TB/s link into a single, unified GPU with 208 billion transistors • It powers the NVIDIA HGX B200, a server platform with eight B200 GPUs interconnected with NVLink, for x86 systems • Amazon, Google, Meta, Microsoft, OpenAI, Oracle, Tesla and xAI are among the many organizations expected to adopt Blackwell • Blackwell products will be available starting later in 2024

• 15. New Wave of NVIDIA Networking Designed for Massive-Scale AI • NVIDIA Quantum-X800 InfiniBand and NVIDIA Spectrum-X800 Ethernet are the world’s first networking platforms capable of end-to-end 800Gb/s throughput • The platforms feature software that accelerates AI, cloud, data processing and HPC applications in every type of data center, including new NVIDIA Blackwell product lineup • For the highest AI performance, GB200-powered systems can be connected with NVIDIA Quantum-X800 InfiniBand or Spectrum-X800 Ethernet switches • HGX B200 supports networking speeds up to 400Gb/s through the NVIDIA Quantum-2 InfiniBand and Spectrum-X Ethernet networking platforms • Initial adopters of Quantum InfiniBand and Spectrum-X include Microsoft Azure, Oracle Cloud Infrastructure, CoreWeave NVIDIA Quantum-X800 InfiniBand NVIDIA Spectrum-X800 Ethernet

• 16. NVIDIA NIM Inference and CUDA-X Microservices • New cloud-native NVIDIA NIM microservices & CUDA-X microservices help developers quickly build & deploy AI & accelerated applications • NIM inference microservices provide pre-built containers powered by NVIDIA inference software—including Triton Inference Server and TensorRT-LLM—and industry-standard APIs for domains such as language, speech & drug discovery • CUDA-X microservices provide end-to-end building blocks for data preparation, customization & training to speed production AI development across industries. These include: • NVIDIA Riva for customizable speech & translation AI • NVIDIA cuOpt for routing optimization • NVIDIA Earth-2 for high resolution climate & weather simulations • NeMo Retriever for linking AI applications to business data for retrievalaugmented generation (RAG) • Supported by a large ecosystem of AI model developers, application & data platforms, infrastructure software platforms, CSPs and OEMs • Enterprises can deploy production-grade NIM microservices with NVIDIA AI Enterprise 5.0 running on NVIDIA-Certified Systems & leading cloud marketplaces • Adobe, Cadence, CrowdStrike, Getty Images, SAP, ServiceNow, Shutterstock are among the first to access the new microservices NVIDIA Triton Inference Server cuDF, CV-CUDA, DALI, NCCL, Postprocessing Decoder CUDA Customization Cache P-Tuning, LORA, Model Weights Cloud-Native Stack GPU Operator, Network Operator Enterprise Management Health Check, Identity, Metrics, Monitoring, Secrets Management Kubernetes Industry-Standard APIs Text, Speech, Image, Video, 3D, Biology Optimized Model Single GPU, Multi-GPU, Multi-Node NVIDIA TensorRT LLM and Triton cuBLAS , cuDNN, In-Flight Batching, Memory Optimization, FP8 Quantization NVIDIA NIM Inference Microservices

• 17. NVIDIA AI and Accelerated Computing Expand to Major Enterprise Workloads and Industries • Announced the acceleration of major workloads and expanding adoption of NVIDIA AI & accelerated computing across large industries • Enterprise software & data platforms—accelerating & bringing gen AI capabilities to the major enterprise software & data platforms such as Box, Cloudera, Cohesity, Dropbox, NetApp, SAP, ServiceNow, Snowflake • Healthcare—Over two dozen NVIDIA healthcare microservices for drug discovery, MedTech, & digital health, to be integrated by AWS and Microsoft Azure. Collaborating with Johnson & Johnson MedTech to use the NVIDIA IGX and Holoscan medical instrument edge AI platform for its connected digital ecosystem for surgery • Industrial digitalization—Unveiled new Omniverse Cloud APIs for digital twin & simulation application development, adopted by Ansys, Cadence, Dassault Systèmes, Siemens; available on Microsoft Azure later this year • EDA and CAE—leading EDA and CAE applications and solvers will be accelerated by NVIDIA, delivering speedups of over 10X, with adoption by Ansys, Cadence and Synopsys • Computational lithography—the most compute intensive workload in the semiconductor manufacturing process—accelerated by 40-60x with NVIDIA cuLitho; being taken into production by TSMC and Synopsys Data Processing CAD, CAE, SDA Genomics, Drug Discovery Weather Simulation 6G, Quantum AV, Robotics, Industrial Digital Twins Computational Lithography

• 18. NVIDIA Powers the Next Generation of Autonomous Machines • Leading transportation companies choose NVIDIA DRIVE Thor to power their next-gen consumer & commercial fleets, from new energy vehicles & trucks to robotaxis, robobuses & last-mile autonomous delivery vehicles • DRIVE Thor is a centralized in-vehicle computing platform based on Blackwell. It delivers feature-rich cockpit capabilities plus safe & secure highly automated and autonomous driving • BYD, GAC AION, XPENG, Plus, Nuro, Waabi, WeRide are adopting DRIVE Thor, joining Li Auto & ZEEKR • DRIVE Thor slated for production vehicles as early as 2025 • Announced Project GR00T, a general-purpose foundation model enabling robots to understand natural language and emulate movements by observing human actions • Announced Jetson Thor robotics computer based on Blackwell • Unveiled significant upgrades to the NVIDIA Isaac robotics platform to support leading humanoid robot companies including 1X Technologies, Agility Robotics, Apptronik, Boston Dynamics, Figure AI, Fourier Intelligence, Sanctuary AI, Unitree Robotics, XPENG Robotics DRIVE SIM IN OMNIVERSE OVX OMNIVERSE DIGITAL TWIN ROBOTIC SYSTEM AGX DGX AI

• 19. NVIDIA H200 Tensor Core GPUs and NVIDIA TensorRT-LLM Set MLPerf LLM Inference Records • In the latest MLPerf benchmark for AI inference, NVIDIA Hopper swept every test of AI inference on a per accelerator basis, demonstrating the power of NVIDIA’s full-stack platform of chips, systems and software to handle the demanding requirements of running gen AI • NVIDIA was the only company to submit results on every workload in the latest round and every round since MLPerf’s inference benchmarks began in October 2020 • NVIDIA TensorRT-LLM—our software that speeds and simplifies the complex job of inference on large language models—boosted the performance of NVIDIA Hopper on GPT-J LLM nearly 3x over their results just six months ago • NVIDIA H200 GPUs, in their MLPerf debut, set a record on the Llama 2 70B benchmark New MLPerf Llama 2 70B Results Tokens/Second Server Offline 20,556 21,806 29,526 31,712 NVIDIA H100 NVIDIA H200 (Preview) Up to 45% Faster Llama 2 70B Inference in MLPerf MLPerf Inference v4.0 data center results retrieved from www.mlperf.org on March 27, 2024, from entries 4.0-0062, and 4.0-0068.

• 20. NVIDIA Sweeps New Ranking of World’s Most Energy-Efficient Supercomputers • In the latest ranking of the world’s most energy-efficient supercomputers – the Green500 – NVIDIA-powered systems swept the top 3 spots, and took 7 of the top 10 • The strong showing demonstrates how accelerated computing represents the most energy-efficient method for high-performance computing • The top three systems were all powered by the NVIDIA GH200 Grace Hopper Superchip, offering over 1,000x more energy efficiency on mixed precision and AI tasks than previous generations • Accelerated computing has proven to be the cornerstone of energy efficiency, with majority of the systems on the Green500 list — including 40 of the top 50 — now featuring it • NVIDIA’s upcoming Blackwell platform offers the computational power of the Titan supercomputer launched 10 years ago — a $100M system the size of a tennis court — yet efficient enough to be powered by a wall socket just like a typical home appliance 0 50 100 150 200 250 300 350 400 2015 2017 2019 2021 2023 2025 DeltaAI Cumulative AI FLOPS Cumulative AI Performance (ExaFLOPS of AI) Polaris Perlmutter Leonardo Pangea Selene Piz Daint Tsubame3 Summit MareNostrum-5 Eos Azure ND H100 v5 Alps Vista Venado JEDI OFP-II Isambard AI GENCI EXA1 HE Helios Miyabi BioHive2 200 ExaFLOPS AI Grace Hopper Coming Online 2024 80% attach rate of Grace to Hopper 2X More Energy Efficient

• 21. Reconciliation of Non-GAAP to GAAP Financial Measures

• 22. Reconciliation of Non-GAAP to GAAP Financial Measures Non-GAAP Acquisition-Related and Other Costs (A) Stock-Based Compensation (B) Other (C) Tax Impact of Adjustments GAAP Q1 FY25 Gross margin ($ in million) $20,560 (119) (36) 1 — $20,406 78.9% (0.4) (0.1) — — 78.4% Operating income ($ in million) $18,059 (140) (1,011) 1 — $16,909 Net income ($ in million) $15,238 (140) (1,011) 69 725 $14,881 Shares used in diluted per share calculation (millions) 2,489 — — — — 2,489 Diluted EPS $6.12 — — — — $5.98 A. Consists of amortization of intangible assets and transaction costs. B. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense. C. Other consists of IP-related costs and assets held for sale related adjustments. net gains from non-affiliated investments and interest expense related to amortization of debt discount

• 23. Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Gross Margin Non-GAAP Acquisition-Related and Other Costs (A) Stock-Based Compensation (B) Other (C) GAAP Q1 FY 2024 66.8% (1.7) (0.4) (0.1) 64.6% Q2 FY 2024 71.2% (0.9) (0.2) — 70.1% Q3 FY 2024 75.0% (0.7) (0.2) (0.1) 74.0% Q4 FY 2024 76.7% (0.5) (0.2) — 76.0% A. Consists of amortization of intangible assets B. Stock-based compensation charge was allocated to cost of goods sold C. Other consists of IP-related costs and assets held for sale related adjustments.

• 24. Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) ($ in Millions) Q2 FY25 Outlook Non-GAAP gross margin 75.5% Impact of stock-based compensation expense, acquisition-related costs, and other costs (0.7%) GAAP gross margin 74.8% Non-GAAP operating expenses $2,800 Impact of stock-based compensation expense, acquisition-related costs, and other costs 1,150 GAAP operating expenses $3,950