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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 28, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-23985
nvidialogoa06.jpg

NVIDIA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware94-3177549
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
2788 San Tomas Expressway, Santa Clara, California
95051
(Address of principal executive offices)(Zip Code)

(408) 486-2000
(Registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareNVDAThe Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The number of shares of common stock, $0.001 par value, outstanding as of May 24, 2024, was 2.46 billion.



NVIDIA Corporation
Form 10-Q
For the Quarter Ended April 28, 2024
Table of Contents
  Page
  
Financial Statements (Unaudited) 
 a) Condensed Consolidated Statements of Income for the three months ended April 28, 2024 and April 30, 2023
b) Condensed Consolidated Statements of Comprehensive Income for the three months ended April 28, 2024 and April 30, 2023
 c) Condensed Consolidated Balance Sheets as of April 28, 2024 and January 28, 2024
d) Condensed Consolidated Statements of Shareholders' Equity for the three months ended April 28, 2024 and April 30, 2023
 e) Condensed Consolidated Statements of Cash Flows for the three months ended April 28, 2024 and April 30, 2023
 f) Notes to Condensed Consolidated Financial Statements
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures About Market Risk
Controls and Procedures
  
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Other Information
Exhibits
 
Where You Can Find More Information
Investors and others should note that we announce material financial information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also use the following social media channels as a means of disclosing information about the company, our products, our planned financial and other announcements and attendance at upcoming investor and industry conferences, and other matters, and for complying with our disclosure obligations under Regulation FD: 
NVIDIA Corporate Blog (http://blogs.nvidia.com)
NVIDIA Technical Blog (http://developer.nvidia.com/blog/)
NVIDIA LinkedIn Page (http://www.linkedin.com/company/nvidia)
NVIDIA Facebook Page (https://www.facebook.com/nvidia)
NVIDIA Instagram Page (https://www.instagram.com/nvidia)
NVIDIA X Account (https://x.com/nvidia)
In addition, investors and others can view NVIDIA videos on YouTube (https://www.YouTube.com/nvidia).
The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these accounts and the blog, in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this Quarterly Report on Form 10-Q. These channels may be updated from time to time on NVIDIA's investor relations website.
2


Part I. Financial Information
Item 1. Financial Statements (Unaudited)

NVIDIA Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(In millions, except per share data)
(Unaudited)

 Three Months Ended
 Apr 28, 2024Apr 30, 2023
Revenue$26,044 $7,192 
Cost of revenue5,638 2,544 
Gross profit20,406 4,648 
Operating expenses  
Research and development2,720 1,875 
Sales, general and administrative777 633 
Total operating expenses3,497 2,508 
Operating income16,909 2,140 
Interest income359 150 
Interest expense(64)(66)
Other, net75 (15)
Other income (expense), net
370 69 
Income before income tax17,279 2,209 
Income tax expense2,398 166 
Net income$14,881 $2,043 
Net income per share:
Basic$6.04 $0.83 
Diluted$5.98 $0.82 
Weighted average shares used in per share computation:
Basic2,462 2,470 
Diluted2,489 2,490 

See accompanying Notes to Condensed Consolidated Financial Statements.
3


NVIDIA Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(In millions)
(Unaudited)
 Three Months Ended
 Apr 28, 2024Apr 30, 2023
 
Net income$14,881 $2,043 
Other comprehensive loss, net of tax
Available-for-sale securities:
Net change in unrealized gain (loss)(128)17 
Cash flow hedges:
Net change in unrealized loss(4)(13)
Reclassification adjustments for net realized loss included in net income(4)(11)
Net change in unrealized loss(8)(24)
Other comprehensive loss, net of tax(136)(7)
Total comprehensive income$14,745 $2,036 

See accompanying Notes to Condensed Consolidated Financial Statements.

4


NVIDIA Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
 Apr 28, 2024Jan 28, 2024
Assets
Current assets:  
Cash and cash equivalents$7,587 $7,280 
Marketable securities23,851 18,704 
Accounts receivable, net12,365 9,999 
Inventories5,864 5,282 
Prepaid expenses and other current assets4,062 3,080 
Total current assets53,729 44,345 
Property and equipment, net4,006 3,914 
Operating lease assets1,532 1,346 
Goodwill4,453 4,430 
Intangible assets, net986 1,112 
Deferred income tax assets7,798 6,081 
Other assets4,568 4,500 
Total assets$77,072 $65,728 
Liabilities and Shareholders' Equity  
Current liabilities:  
Accounts payable$2,715 $2,699 
Accrued and other current liabilities11,258 6,682 
Short-term debt1,250 1,250 
Total current liabilities15,223 10,631 
Long-term debt8,460 8,459 
Long-term operating lease liabilities1,281 1,119 
Other long-term liabilities2,966 2,541 
Total liabilities27,930 22,750 
Commitments and contingencies - see Note 12
Shareholders’ equity:  
Preferred stock  
Common stock2 2 
Additional paid-in capital12,651 13,132 
Accumulated other comprehensive income (loss)(109)27 
Retained earnings36,598 29,817 
Total shareholders' equity49,142 42,978 
Total liabilities and shareholders' equity$77,072 $65,728 

See accompanying Notes to Condensed Consolidated Financial Statements.

5


NVIDIA Corporation and Subsidiaries
Condensed Consolidated Statements of Shareholders' Equity
For the Three Months Ended April 28, 2024 and April 30, 2023
(Unaudited)
Common Stock
Outstanding
Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTotal Shareholders' Equity
SharesAmount
(In millions, except per share data)
Balances, Jan 28, 20242,464 $2 $13,132 $27 $29,817 $42,978 
Net income— — — — 14,881 14,881 
Other comprehensive loss— — — (136)— (136)
Issuance of common stock from stock plans 7 — 285 — — 285 
Tax withholding related to vesting of restricted stock units(2)— (1,752)— — (1,752)
Shares repurchased(10)— (33)— (8,002)(8,035)
Cash dividends declared and paid ($0.04 per common share)
— — — — (98)(98)
Stock-based compensation— — 1,019 — — 1,019 
Balances, Apr 28, 20242,459 $2 $12,651 $(109)$36,598 $49,142 
Balances, Jan 29, 20232,466 $2 $11,971 $(43)$10,171 $22,101 
Net income— — — — 2,043 2,043 
Other comprehensive loss— — — (7)— (7)
Issuance of common stock from stock plans 9 — 246 — — 246 
Tax withholding related to vesting of restricted stock units(2)— (507)— — (507)
Cash dividends declared and paid ($0.04 per common share)
— — — — (99)(99)
Stock-based compensation— — 743 — — 743 
Balances, Apr 30, 20232,473 $2 $12,453 $(50)$12,115 $24,520 
See accompanying Notes to Condensed Consolidated Financial Statements.
6


NVIDIA Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
 Three Months Ended
 Apr 28, 2024Apr 30, 2023
Cash flows from operating activities:
Net income$14,881 $2,043 
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense1,011 735 
Depreciation and amortization410 384 
Realized and unrealized (gains) losses on investments in non-affiliated entities, net(69)14 
Deferred income taxes(1,577)(1,135)
Other(145)(34)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(2,366)(252)
Inventories(577)566 
Prepaid expenses and other assets(726)(215)
Accounts payable(22)11 
Accrued and other current liabilities4,202 689 
Other long-term liabilities323 105 
Net cash provided by operating activities15,345 2,911 
Cash flows from investing activities:
Proceeds from maturities of marketable securities4,004 2,512 
Proceeds from sales of marketable securities149  
Purchases of marketable securities(9,303)(2,801)
Purchases related to property and equipment and intangible assets(369)(248)
Acquisitions, net of cash acquired(39)(83)
Investments in non-affiliated entities(135)(221)
Net cash used in investing activities(5,693)(841)
Cash flows from financing activities:
Proceeds related to employee stock plans285 246 
Payments related to repurchases of common stock (7,740) 
Payments related to tax on restricted stock units(1,752)(507)
Dividends paid(98)(99)
Principal payments on property and equipment and intangible assets(40)(20)
Net cash used in financing activities(9,345)(380)
Change in cash and cash equivalents307 1,690 
Cash and cash equivalents at beginning of period7,280 3,389 
Cash and cash equivalents at end of period$7,587 $5,079 
See accompanying Notes to Condensed Consolidated Financial Statements.
7

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)


Note 1 - Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 28, 2024 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position, have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024. 
Significant Accounting Policies
There have been no material changes to our significant accounting policies disclosed in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024.
Fiscal Year
We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2025 and 2024 are both 52-week years. The first quarters of fiscal years 2025 and 2024 were both 13-week quarters.
Principles of Consolidation
Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories and product purchase commitments, income taxes, goodwill, stock-based compensation, litigation, investigation and settlement costs, property, plant, and equipment, and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable.
Recently Issued Accounting Pronouncements
Recent Accounting Pronouncements Not Yet Adopted
In November 2023, the Financial Accounting Standards Board, or FASB, issued a new accounting standard to provide for additional disclosures about significant expenses in operating segments. The standard is effective for our annual reporting starting with fiscal year 2025 and for interim period reporting starting in fiscal year 2026 retrospectively. We are currently evaluating the impact of this standard on our Consolidated Financial Statements.
In December 2023, the FASB issued a new accounting standard which provides for new and updated income tax disclosures, including disaggregation of rate reconciliation and income taxes paid. The standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and should be applied prospectively, with retrospective application permitted. We expect to adopt this standard in our annual reporting starting with fiscal year 2026. We are currently evaluating the impact of this standard on our Consolidated Financial Statements.



8

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Note 2 - Leases
Our lease obligations primarily consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between fiscal years 2025 and 2035.
Future minimum lease payments under our non-cancelable operating leases as of April 28, 2024 were as follows:
Operating Lease Obligations
 (In millions)
Fiscal Year: 
2025 (excluding first quarter of fiscal year 2025)
$221 
2026306 
2027290 
2028270 
2029236 
2030 and thereafter
410 
Total1,733 
Less imputed interest206 
Present value of net future minimum lease payments1,527 
Less short-term operating lease liabilities246 
Long-term operating lease liabilities$1,281 
In addition, we have operating leases, primarily for our data centers, that are expected to commence during fiscal year 2025 with lease terms of 2 to 11 years for $923 million.
Operating lease expenses were $80 million and $59 million for the first quarter of fiscal years 2025 and 2024, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2025 and 2024 were not significant.
Other information related to leases was as follows:
Three Months Ended
Apr 28, 2024Apr 30, 2023
 (In millions)
Supplemental cash flows information 
Operating cash flows used for operating leases$69 $61 
Operating lease assets obtained in exchange for lease obligations250 106 
As of April 28, 2024, our operating leases had a weighted average remaining lease term of 6.3 years and a weighted average discount rate of 3.89%. As of January 28, 2024, our operating leases had a weighted average remaining lease term of 6.1 years and a weighted average discount rate of 3.76%.
9

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Note 3 - Stock-Based Compensation
Our stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units that are based on our corporate financial performance targets, or PSUs, performance stock units that are based on market conditions, or market-based PSUs, and our employee stock purchase plan, or ESPP.
Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts capitalized into inventory and subsequently recognized to cost of revenue, as follows:
 Three Months Ended
 Apr 28, 2024Apr 30, 2023
(In millions)
Cost of revenue$36 $27 
Research and development727 524 
Sales, general and administrative248 184 
Total$1,011 $735 
Equity Award Activity
The following is a summary of our equity award transactions under our equity incentive plans:
RSUs, PSUs, and Market-based PSUs Outstanding
 Number of SharesWeighted Average Grant-Date Fair Value Per Share
(In millions, except per share data)
Balances, Jan 28, 202437 $245.94 
Granted7 $801.79 
Vested(6)$176.59 
Balances, Apr 28, 202438 $361.45 
As of April 28, 2024, there was $13.2 billion of aggregate unearned stock-based compensation expense. This amount is expected to be recognized over a weighted average period of 2.6 years for RSUs, PSUs, and market-based PSUs, and 0.8 years for ESPP.
Note 4 - Net Income Per Share
The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented:
 Three Months Ended
Apr 28, 2024Apr 30, 2023
 (In millions, except per share data)
Numerator:  
Net income$14,881 $2,043 
Denominator:
Basic weighted average shares2,462 2,470 
Dilutive impact of outstanding equity awards27 20 
Diluted weighted average shares2,489 2,490 
Net income per share:
Basic (1)$6.04 $0.83 
Diluted (2)$5.98 $0.82 
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive6 4 
(1)    Calculated as net income divided by basic weighted average shares.
(2)    Calculated as net income divided by diluted weighted average shares.
10

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Diluted net income per share is computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. Any anti-dilutive effect of equity awards outstanding is not included in the computation of diluted net income per share.
Note 5 - Income Taxes
Income tax expense was $2.4 billion and $166 million for the first quarter of fiscal years 2025 and 2024, respectively. Income tax expense as a percentage of income before income tax was 13.9% and 7.5% for the first quarter of fiscal years 2025 and 2024, respectively.

The effective tax rate increased primarily due to a decreased effect of tax benefits from the foreign-derived intangible income deduction and stock-based compensation relative to the increase in income before income tax.

Our effective tax rates for the first quarter of fiscal years 2025 and 2024 were lower than the U.S. federal statutory rate of 21% due to tax benefits from stock-based compensation, the foreign-derived intangible income deduction, income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate, and the U.S. federal research tax credit.

While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. As of April 28, 2024, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next 12 months.
Note 6 - Cash Equivalents and Marketable Securities 
Our cash equivalents and marketable securities related to publicly held debt securities are classified as “available-for-sale” debt securities.
The following is a summary of cash equivalents and marketable securities:
 Apr 28, 2024
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Corporate debt securities$11,397 $3 $(43)$11,357 $733 $10,624 
Debt securities issued by the U.S. Treasury11,314  (62)11,252 886 10,366 
Money market funds5,374   5,374 5,374  
Debt securities issued by U.S. government agencies2,826  (7)2,819 189 2,630 
Certificates of deposit286   286 69 217 
Foreign government bonds14   14  14 
Total$31,211 $3 $(112)$31,102 $7,251 $23,851 
11

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
 Jan 28, 2024
Amortized
Cost
Unrealized
Gain
Unrealized
Loss
Estimated
Fair Value
Reported as
 Cash EquivalentsMarketable Securities
 (In millions)
Corporate debt securities$10,126 $31 $(5)$10,152 $2,231 $7,921 
Debt securities issued by the U.S. Treasury9,517 17 (10)9,524 1,315 8,209 
Money market funds3,031   3,031 3,031  
Debt securities issued by U.S. government agencies2,326 8 (1)2,333 89 2,244 
Certificates of deposit510   510 294 216 
Foreign government bonds174   174 60 114 
Total$25,684 $56 $(16)$25,724 $7,020 $18,704 
The following tables provide the breakdown of unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
Apr 28, 2024
 Less than 12 Months12 Months or GreaterTotal
 Estimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized Loss
 (In millions)
Debt securities issued by the U.S. Treasury$9,720 $(60)$756 $(2)$10,476 $(62)
Corporate debt securities6,943 (42)188 (1)7,131 (43)
Debt securities issued by U.S. government agencies2,391 (7)  2,391 (7)
Total$19,054 $(109)$944 $(3)$19,998 $(112)
Jan 28, 2024
 Less than 12 Months12 Months or GreaterTotal
 Estimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized LossEstimated Fair ValueGross Unrealized Loss
 (In millions)
Debt securities issued by the U.S. Treasury$3,343 $(5)$1,078 $(5)$4,421 $(10)
Corporate debt securities1,306 (3)618 (2)1,924 (5)
Debt securities issued by U.S. government agencies670 (1)  670 (1)
Total$5,319 $(9)$1,696 $(7)$7,015 $(16)
The gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates. Net realized gains and losses were not significant for all periods presented.
12

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
The amortized cost and estimated fair value of cash equivalents and marketable securities are shown below by contractual maturity.
Apr 28, 2024Jan 28, 2024
Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
(In millions)
Less than one year$16,811 $16,800 $16,336 $16,329 
Due in 1 - 5 years14,400 14,302 9,348 9,395 
Total$31,211 $31,102 $25,684 $25,724 
Note 7 - Fair Value of Financial Assets and Liabilities and Investments in Non-Affiliated Entities
The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis.
Pricing CategoryFair Value at
Apr 28, 2024Jan 28, 2024
(In millions)
Assets
Cash equivalents and marketable securities:
Money market fundsLevel 1$5,374 $3,031 
Corporate debt securitiesLevel 2$11,357 $10,152 
Debt securities issued by the U.S. TreasuryLevel 2$11,252 $9,524 
Debt securities issued by U.S. government agenciesLevel 2$2,819 $2,333 
Certificates of depositLevel 2$286 $510 
Foreign government bondsLevel 2$14 $174 
Other assets (Investments in non-affiliated entities):
Publicly-held equity securitiesLevel 1$287 $225 
Liabilities (1)
0.584% Notes Due 2024
Level 2$1,242 $1,228 
3.20% Notes Due 2026
Level 2$960 $970 
1.55% Notes Due 2028
Level 2$1,096 $1,115 
2.85% Notes Due 2030
Level 2$1,331 $1,367 
2.00% Notes Due 2031
Level 2$1,026 $1,057 
3.50% Notes Due 2040
Level 2$805 $851 
3.50% Notes Due 2050
Level 2$1,487 $1,604 
3.70% Notes Due 2060
Level 2$368 $403 

(1)    These liabilities are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs.
Investments in Non-Affiliated Entities
Our investments in non-affiliated entities include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies.
Our marketable equity securities have readily determinable fair values and are recorded in long-term other assets on our Condensed Consolidated Balance Sheets at fair value with changes in fair value recorded in Other income and expense, net on our Condensed Consolidated Statements of Income. Marketable equity securities totaled $287 million and $225 million as of April 28, 2024 and January 28, 2024, respectively. The net unrealized and realized gains and losses of investments in marketable securities were not significant for the first quarter of fiscal years 2025 and 2024.
13

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Our non-marketable equity securities are recorded in long-term other assets on our Condensed Consolidated Balance Sheets and valued under the measurement alternative. The carrying value of our non-marketable equity securities totaled $1.5 billion and $1.3 billion as of April 28, 2024 and January 28, 2024, respectively. Gains and losses on these investments, realized and unrealized, are recognized in Other income and expense, net on our Condensed Consolidated Statements of Income.
Adjustments to the carrying value of our non-marketable equity securities during the first quarter of fiscal years 2025 and 2024 were as follows:
Apr 28, 2024Apr 30, 2023
(In millions)
Balance at beginning of period$1,321 $288 
Adjustments related to non-marketable equity securities:
Net additions127 221 
Unrealized gains15  
Impairments and unrealized losses (13)
Balance at end of period$1,463 $496 
The following table summarizes the cumulative gross unrealized gains, losses and impairments related to non-marketable equity securities:
Apr 28, 2024
(In millions)
Cumulative gross unrealized gains$285 
Cumulative gross impairments and unrealized losses(45)
Note 8 - Amortizable Intangible Assets and Goodwill
The components of our amortizable intangible assets are as follows:
 Apr 28, 2024Jan 28, 2024
 Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
 (In millions)
Acquisition-related intangible assets$2,648 $(1,844)$804 $2,642 $(1,720)$922 
Patents and licensed technology442 (260)182 449 (259)190 
Total intangible assets$3,090 $(2,104)$986 $3,091 $(1,979)$1,112 
Amortization expense associated with intangible assets was $143 million and $181 million for the first quarter of fiscal year 2025 and 2024, respectively.
14

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
The following table outlines the estimated amortization expense related to the net carrying amount of intangible assets as of April 28, 2024:
Future Amortization Expense
 (In millions)
Fiscal Year: 
2025 (excluding first quarter of fiscal year 2025)
$418 
2026267 
2027155 
202837 
20299 
2030 and thereafter100 
Total$986 
In the first quarter of fiscal year 2025, goodwill increased by $23 million from business combinations, and was assigned to our Compute & Networking segment.
Note 9 - Balance Sheet Components 
Two customers accounted for 16% and 15% of our accounts receivable balance as of April 28, 2024. Two customers accounted for 24% and 11% of our accounts receivable balance as of January 28, 2024.
Certain balance sheet components are as follows:
 Apr 28, 2024Jan 28, 2024
Inventories (1):(In millions)
Raw materials$1,991 $1,719 
Work in process1,625 1,505 
Finished goods2,248 2,058 
Total inventories$5,864 $5,282 
(1)    During the first quarter of fiscal years 2025 and 2024, we recorded an inventory provision of $210 million and $105 million, respectively, in cost of revenue.

 Apr 28, 2024Jan 28, 2024
Other Assets:(In millions)
Prepaid supply and capacity agreements (1)$2,232 $2,458 
Investments in non-affiliated entities1,750 1,546 
Prepaid royalties358 364 
Other228 132 
Total other assets$4,568 $4,500 
(1)    As of April 28, 2024 and January 28, 2024, there were an additional $3.3 billion and $2.5 billion of short-term prepaid supply and capacity agreements included in Prepaid expenses and other current assets, respectively.
15

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
 Apr 28, 2024Jan 28, 2024
Accrued and Other Current Liabilities:(In millions)
Taxes payable (1)$3,881 $296 
Customer program accruals2,744 2,081 
Excess inventory purchase obligations (2)1,684 1,655 
Deferred revenue (3)845 764 
Product warranty and return provisions643 415 
Accrued payroll and related expenses639 675 
Unsettled share repurchases262 187 
Operating leases246 228 
Licenses and royalties164 182 
Other150 199 
Total accrued and other current liabilities$11,258 $6,682 
(1)    We did not make any estimated federal or state tax payments in the first quarter and expect our cash taxes to substantially increase in the second quarter as we will make two federal and state estimated tax payments.

(2)    During the first quarter of fiscal years 2025 and 2024, we recorded an expense of approximately $183 million and $29 million, respectively, in cost of revenue for inventory purchase obligations in excess of our current demand projections, supplier charges, and penalties related to cancellations and underutilization.

(3)    Deferred revenue primarily includes customer advances and deferrals related to hardware support, software support, cloud services, and license and development arrangements. $274 million and $233 million of the balance in the first quarter of fiscal year 2025 and in fiscal year 2024, respectively, were related to customer advances.

 Apr 28, 2024Jan 28, 2024
Other Long-Term Liabilities:(In millions)
Income tax payable (1)$1,553 $1,361 
Deferred revenue (2)704 573 
Deferred income tax583 462 
Licenses payable60 80 
Other66 65 
Total other long-term liabilities$2,966 $2,541 
(1)    Income tax payable is comprised of the long-term portion of the one-time transition tax payable, unrecognized tax benefits, and related interest and penalties.

(2)    Deferred revenue primarily includes deferrals related to hardware support and software support.
Deferred Revenue
The following table shows the changes in short and long term deferred revenue during the first quarter of fiscal years 2025 and 2024:
 Apr 28, 2024Apr 30, 2023
(In millions)
Balance at beginning of period$1,337 $572 
Deferred revenue additions during the period553 287 
Revenue recognized during the period(341)(262)
Balance at end of period$1,549 $597 
We recognized $188 million in revenue in the first quarter of fiscal year 2025 from deferred revenue as of January 28, 2024.
Revenue allocated to remaining performance obligations, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods, was $1.3 billion as of April 28, 2024. We expect to recognize approximately 38% of this revenue over the next twelve months and the remainder thereafter. This excludes revenue related to performance obligations for contracts with a length of one year or less.
16

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Note 10 - Derivative Financial Instruments
We enter into foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These contracts are designated as cash flow hedges for hedge accounting treatment. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss and reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur.
We also enter into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities. The change in fair value of these non-designated contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense.
The table below presents the notional value of our foreign currency contracts outstanding:
 Apr 28, 2024Jan 28, 2024
(In millions)
Designated as cash flow hedges$1,198 $1,168 
Non-designated hedges$704 $597 
The unrealized gains and losses or fair value of our foreign currency contracts was not significant as of April 28, 2024 and January 28, 2024.
As of April 28, 2024, all designated foreign currency contracts mature within 18 months. The expected realized gains and losses deferred to accumulated other comprehensive income or loss related to foreign currency contracts was not significant.
During the first quarter of fiscal years 2025 and 2024, the impact of derivative financial instruments designated for hedge accounting treatment in other comprehensive income or loss was not significant and the instruments were determined to be highly effective.
Note 11 - Debt
Long-Term Debt
Expected
Remaining Term (years)
Effective
Interest Rate
Carrying Value at
Apr 28, 2024Jan 28, 2024
(In millions)
0.584% Notes Due 2024
0.10.66%1,250 1,250 
3.20% Notes Due 2026
2.43.31%1,000 1,000 
1.55% Notes Due 2028
4.11.64%1,250 1,250 
2.85% Notes Due 2030
5.92.93%1,500 1,500 
2.00% Notes Due 2031
7.12.09%1,250 1,250 
3.50% Notes Due 2040
15.93.54%1,000 1,000 
3.50% Notes Due 2050
25.93.54%2,000 2,000 
3.70% Notes Due 2060
36.03.73%500 500 
Unamortized debt discount and issuance costs(40)(41)
Net carrying amount9,710 9,709 
Less short-term portion(1,250)(1,250)
Total long-term portion$8,460 $8,459 
Our notes are unsecured senior obligations. Existing and future liabilities of our subsidiaries will be effectively senior to the notes. Our notes pay interest semi-annually. We may redeem each of our notes prior to maturity, as defined in the applicable form of note. The maturity of the notes are calendar year.
As of April 28, 2024, we were in compliance with the required covenants, which are non-financial in nature, under the outstanding notes.
17

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Commercial Paper
We have a $575 million commercial paper program to support general corporate purposes. As of April 28, 2024, we had no commercial paper outstanding.
Note 12 - Commitments and Contingencies
Purchase Obligations
Our purchase obligations reflect our commitment to purchase components used to manufacture our products, including long-term supply and capacity agreements, certain software and technology licenses, other goods and services and long-lived assets.
As of April 28, 2024, we had outstanding inventory purchases and long-term supply and capacity obligations totaling $18.8 billion. We enter into agreements with contract manufacturers that allow them to procure inventory based upon our defined criteria, and in certain instances, these agreements are cancellable, able to be rescheduled, and adjustable for our business needs prior to placing firm orders. These changes may result in costs incurred through the date of cancellation. Other non-inventory purchase obligations were $10.6 billion, including $8.8 billion of multi-year cloud service agreements. We expect our cloud service agreements to be used to support our research and development efforts and our DGX Cloud offerings.
Total future purchase commitments as of April 28, 2024 are as follows:
Commitments
 (In millions)
Fiscal Year: 
2025 (excluding first quarter of fiscal year 2025)
$19,306 
20263,438 
20272,573 
20282,222 
20291,585 
2030 and thereafter
249 
Total$29,373 
In addition to the purchase commitments included in the table above, at the end of the first quarter of fiscal year 2025, we had commitments of approximately $1.2 billion to complete business combinations, subject to closing conditions, and acquire land and buildings.
Accrual for Product Warranty Liabilities
The estimated amount of product warranty liabilities was $532 million and $306 million as of April 28, 2024 and January 28, 2024, respectively. The estimated product returns and product warranty activity consisted of the following:
Three Months Ended
Apr 28, 2024Apr 30, 2023
(In millions)
Balance at beginning of period$306 $82 
Additions234 13 
Utilization(8)(18)
Balance at end of period$532 $77 
We have provided indemnities for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology-related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications.
18

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Litigation
Securities Class Action and Derivative Lawsuits
The plaintiffs in the putative securities class action lawsuit, captioned 4:18-cv-07669-HSG, initially filed on December 21, 2018 in the United States District Court for the Northern District of California, and titled In Re NVIDIA Corporation Securities Litigation, filed an amended complaint on May 13, 2020. The amended complaint asserted that NVIDIA and certain NVIDIA executives violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between May 10, 2017 and November 14, 2018. Plaintiffs also alleged that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. Plaintiffs sought class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees and expert fees, and further relief as the Court may deem just and proper. On March 2, 2021, the district court granted NVIDIA’s motion to dismiss the complaint without leave to amend, entered judgment in favor of NVIDIA and closed the case. On March 30, 2021, plaintiffs filed an appeal from judgment in the United States Court of Appeals for the Ninth Circuit, case number 21-15604. On August 25, 2023, a majority of a three-judge Ninth Circuit panel affirmed in part and reversed in part the district court’s dismissal of the case, with a third judge dissenting on the basis that the district court did not err in dismissing the case. On November 15, 2023, the Ninth Circuit denied NVIDIA’s petition for rehearing en banc of the Ninth Circuit panel’s majority decision to reverse in part the dismissal of the case, which NVIDIA had filed on October 10, 2023. On November 21, 2023, NVIDIA filed a motion with the Ninth Circuit for a stay of the mandate pending NVIDIA’s petition for a writ of certiorari in the Supreme Court of the United States and the Supreme Court’s resolution of the matter. On December 5, 2023, the Ninth Circuit granted NVIDIA’s motion to stay the mandate. NVIDIA filed a petition for a writ of certiorari on March 4, 2024. Four amicus briefs in support of NVIDIA’s petition were filed on April 5, 2024.
The putative derivative lawsuit pending in the United States District Court for the Northern District of California, captioned 4:19-cv-00341-HSG, initially filed January 18, 2019 and titled In re NVIDIA Corporation Consolidated Derivative Litigation, was stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. On February 22, 2022, the court administratively closed the case, but stated that it would reopen the case once the appeal in the In Re NVIDIA Corporation Securities Litigation action is resolved. The stay remains in place. The lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs are seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures.
The putative derivative actions initially filed September 24, 2019 and pending in the United States District Court for the District of Delaware, Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-UNA) and Nelson v. Huang, et. al. (Case No. 1:19-cv-01798- UNA), remain stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. The lawsuits assert claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, insider trading, misappropriation of information, corporate waste and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false, and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and unspecified corporate governance measures.
Another putative derivative action was filed on October 30, 2023 in the Court of Chancery of the State of Delaware, captioned Horanic v. Huang, et al. (Case No. 2023-1096-KSJM). This lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty and insider trading based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and reform of unspecified corporate governance measures. This derivative matter is stayed pending the final resolution of In Re NVIDIA Corporation Securities Litigation action.
Accounting for Loss Contingencies
As of April 28, 2024, there are no accrued contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable. Further, except as described above, any possible loss or range of loss in these matters cannot be reasonably estimated at this time. We are engaged in legal actions not described above arising in the ordinary course of business and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position.
19

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Note 13 - Shareholders’ Equity 
Capital Return Program 
During the first quarter of fiscal year 2025, we repurchased 9.9 million shares of our common stock for $8.0 billion. We did not repurchase any shares during the first quarter of fiscal year 2024. As of April 28, 2024, we were authorized, subject to certain specifications, to repurchase up to $14.5 billion additional shares of our common stock. Our share repurchase program aims to offset dilution from shares issued to employees. We may pursue additional share repurchases as we weigh market factors and other investment opportunities.
From April 29, 2024 through May 24, 2024, we repurchased 2.3 million shares for $2.1 billion pursuant to a Rule 10b5-1 trading plan.
During the first quarter of fiscal years 2025 and 2024, we paid $98 million and $99 million in cash dividends to our shareholders, respectively. Our cash dividend program and the payment of future cash dividends under that program are subject to our Board of Directors' continuing determination that the dividend program and the declaration of dividends thereunder are in the best interests of our shareholders.
Note 14 - Segment Information
Our Chief Executive Officer is our chief operating decision maker, or CODM, and reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance.
The Compute & Networking segment includes our Data Center accelerated computing platform; networking; automotive artificial intelligence, or AI, Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; electric vehicle computing platforms; Jetson for robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud.
The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse Enterprise software for building and operating 3D internet applications.
Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments.
The “All Other” category includes the expenses that our CODM does not assign to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance. The expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related and other costs, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature.
Our CODM does not review any information regarding total assets on a reportable segment basis. Depreciation and amortization expenses directly attributable to each reportable segment are included in operating results for each segment. However, our CODM does not evaluate depreciation and amortization expense by operating segment and, therefore, it is not separately presented. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments and the “All Other” category.
 Compute & NetworkingGraphicsAll OtherConsolidated
 (In millions)
Three Months Ended Apr 28, 2024
    
Revenue$22,675 $3,369 $ $26,044 
Operating income (loss)$17,047 $1,241 $(1,379)$16,909 
Three Months Ended Apr 30, 2023
    
Revenue$4,460 $2,732 $ $7,192 
Operating income (loss)$2,160 $1,046 $(1,066)$2,140 
20

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Three Months Ended
Apr 28, 2024Apr 30, 2023
(In millions)
Reconciling items included in "All Other" category:
Stock-based compensation expense$(1,011)$(735)
Unallocated cost of revenue and operating expenses (229)(154)
Acquisition-related and other costs(140)(173)
Other1 (4)
Total$(1,379)$(1,066)
Revenue by geographic areas is based upon the billing location of the customer. End customer and shipping location may be different from our customer’s billing location. For example, most of the shipments associated with Singapore revenue went to either the United States or Taiwan in the first quarter of fiscal year 2025. Shipments to Singapore were insignificant. Revenue by geographic areas was as follows:
 Three Months Ended
 Apr 28, 2024Apr 30, 2023
 (In millions)
Revenue:  
United States$13,496 $2,385 
Taiwan4,373 1,796 
Singapore4,037 762 
China (including Hong Kong)2,491 1,590 
Other countries1,647 659 
Total revenue$26,044 $7,192 
The increase in revenue to the United States for the first quarter of fiscal year 2025 was primarily due to higher U.S.-based Compute & Networking segment demand.
Sales to one direct customer, Customer A, represented 13% of total revenue and sales to a second direct customer, Customer B, represented 11% of total revenue for the first quarter of fiscal year 2025, both of which were attributable to the Compute & Networking segment. No customer represented 10% or more of total revenue for the first quarter of fiscal year 2024.
The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:
 Three Months Ended
 Apr 28, 2024Apr 30, 2023
 (In millions)
Revenue:  
Data Center$22,563 $4,284 
Compute19,392 3,357 
Networking3,171 927 
Gaming2,647 2,240 
Professional Visualization427 295 
Automotive329 296 
OEM and Other78 77 
Total revenue$26,044 $7,192 
21

NVIDIA Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Note 15 - Subsequent Events
On May 22, 2024, we announced a ten-for-one forward stock split, or the Stock Split, of our issued common stock to be effected through the filing of an amendment to our Restated Certificate of Incorporation, or the Amendment, with the Secretary of the State of Delaware. The Amendment will result in a proportionate increase in the number of shares of authorized common stock. As a result of the Stock Split, each record holder of common stock as of the close of market on June 6, 2024 will receive nine additional shares of common stock, to be distributed after the close of market on June 7, 2024. The following table reflects basic and diluted weighted average shares and net income per share on an unaudited pro forma basis giving effect to the Stock Split as if it had been effective for all periods presented:
Pro Forma (Unaudited)
Three Months Ended
Year Ended
Apr 28, 2024
Apr 30, 2023
Jan 28, 2024
Jan 29, 2023
Jan 30, 2022
(In millions, except per share data)
Numerator:
Net income
$14,881 $2,043 $29,760 $4,368 $9,752 
Denominator:
Basic weighted average shares
24,620 24,700 24,690 24,870 24,960 
Dilutive impact of outstanding equity awards
270 200 250 200 390 
Diluted weighted average shares
24,890 24,900 24,940 25,070 25,350 
Net income per share:
Basic (1)
$0.60 $0.08 $1.21 $0.18 $0.39 
Diluted (2)
$0.60 $0.08 $1.19 $0.17 $0.38 
(1) Calculated as net income divided by basic weighted average shares.
(2) Calculated as net income divided by diluted weighted average shares.
On May 22, 2024, we also announced an increase in our quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock. The increased dividend is equivalent to $0.01 per share on a post-Stock Split basis and will be paid on June 28, 2024, to all shareholders of record on June 11, 2024.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements 
This Quarterly Report on Form 10-Q contains forward-looking statements based on management’s beliefs and assumptions and on information currently available to management. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “goal,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential” and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. We discuss many of these risks, uncertainties and other factors in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended January 28, 2024 in greater detail under the heading “Risk Factors” of such reports. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this filing. You should read this Quarterly Report on Form 10-Q completely and understand that our actual future results may be materially different from what we expect. We hereby qualify our forward-looking statements by these cautionary statements. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

All references to “NVIDIA,” “we,” “us,” “our” or the “Company” mean NVIDIA Corporation and its subsidiaries.
© 2024 NVIDIA Corporation. All rights reserved.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the risk factors set forth in Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 28, 2024 and Part II, Item 1A. “Risk Factors” of this Quarterly Report on Form 10-Q and our Condensed Consolidated Financial Statements and related Notes thereto, as well as other cautionary statements and risks described elsewhere in this Quarterly Report on Form 10-Q and our other filings with the SEC, before deciding to purchase, hold, or sell shares of our common stock.
Overview
Our Company and Our Businesses
NVIDIA pioneered accelerated computing to help solve the most challenging computational problems. Since our original focus on PC graphics, we have expanded to several other large and important computationally intensive fields. Fueled by the sustained demand for exceptional 3D graphics and the scale of the gaming market, NVIDIA has leveraged its GPU architecture to create platforms for scientific computing, AI, data science, autonomous vehicles, robotics, metaverse and 3D internet applications. Our two operating segments are "Compute & Networking" and "Graphics," as described in Note 14 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Headquartered in Santa Clara, California, NVIDIA was incorporated in California in April 1993 and reincorporated in Delaware in April 1998.
Recent Developments, Future Objectives and Challenges
Demand and Supply, Product Transitions, and New Products and Business Models
Our overall revenue, driven by data center compute, continued to grow through the first quarter of fiscal year 2025. We continue to gather customer demand indications across several product transitions. We have demand visibility for our data center products, including the recently announced Blackwell GPU architecture. We have previously increased our supply and capacity purchases with existing suppliers with planned receipts later this year. We continue to add new vendors and have entered and may continue to enter into prepaid manufacturing and capacity agreements to supply both current and future products. The increased purchase volumes and number of suppliers and integration of new vendors into our supply chain may create more complexity and execution risk. Our purchase commitments and obligations for inventory and manufacturing capacity at the end of the first quarter of fiscal year 2025 continued to be impacted by shortening lead times for certain components. We may incur inventory provisions or impairments if our inventory or supply or capacity commitments exceed demand for our products or demand declines. While supply for H100 continued to improve, we are still constrained on H200. Our next generation data center architecture, Blackwell, is in production, and we plan on shipping customer samples in the second quarter. We expect to ramp customer shipments of Blackwell in the second half of the fiscal year. We believe the initial demand for Blackwell is well ahead of the projected supply for this fiscal year. We expect supply constraints for our Blackwell offerings will continue into next year.
Product transitions are complex as we often ship both new and prior architecture products simultaneously and we and our channel partners prepare to ship and support new products. Due to our product introduction cycles, we are almost always in various stages of transitioning the architectures of our Data Center, Gaming, and Professional Visualization products. We have begun a broader and faster Data Center product launch cadence to meet a growing and diverse set of
23




AI opportunities. The increased frequency of these transitions may magnify the challenges associated with managing our supply and demand due to manufacturing lead times. Qualification time for new products, customers anticipating product transitions and channel partners reducing channel inventory of prior architectures ahead of new product introductions can reduce or create volatility in our revenue. The increasing frequency and complexity of newly introduced products could result in quality or production issues that could increase inventory provisions, warranty, or other costs or result in product delays. Deployment of new products to customers creates additional challenges due to the complexity of our technologies, which has impacted and may in the future impact the timing of customer purchases or otherwise impact our demand. While we have managed prior product transitions and have sold multiple product architectures at the same time, these transitions are difficult, may impair our ability to predict demand and impact our supply mix, and may cause us to incur additional costs.
We build technology and introduce products for new and innovative use cases and applications such as our NVIDIA DGX Cloud services, our Omniverse platform, LLMs, and generative AI models. Our demand estimates for new use cases, applications, and services can be incorrect and create volatility in our revenue or supply levels, and we may not be able to generate significant revenue from these use cases, applications, and services. Recent technologies, such as generative AI models, have emerged, and while they have driven increased demand for Data Center, the long-term trajectory is unknown.
Global Trade
In August 2022, the U.S. government, or the USG, announced licensing requirements that, with certain exceptions, impact exports to China (including Hong Kong and Macau) and Russia of our A100 and H100 integrated circuits, DGX or any other systems or boards which incorporate A100 or H100 integrated circuits.
In July 2023, the USG informed us of an additional licensing requirement for a subset of A100 and H100 products destined to certain customers and other regions, including some countries in the Middle East.
In October 2023, the USG announced new and updated licensing requirements that became effective in our fourth quarter of fiscal year 2024 for exports to China and Country Groups D1, D4, and D5 (including but not limited to Saudi Arabia, the United Arab Emirates, and Vietnam, but excluding Israel) of our products exceeding certain performance thresholds, including A100, A800, H100, H800, L4, L40, L40S and RTX 4090. The licensing requirements also apply to the export of products exceeding certain performance thresholds to a party headquartered in, or with an ultimate parent headquartered in, Country Group D5, including China. On October 23, 2023, the USG informed us the licensing requirements were effective immediately for shipments of our A100, A800, H100, H800, and L40S products. We have not received licenses to ship these restricted products to China.
We expanded our Data Center product portfolio to offer new solutions, including those for which the USG does not require a license or advance notice before each shipment. We ramped new products designed specifically for China that do not require an export control license. Our Data Center revenue in China is down significantly from the level prior to the imposition of new export control restrictions in October 2023. To the extent that a customer requires products covered by the licensing requirements, we may seek a license for the customer but have no assurance that the USG will grant such a license, or that the USG will act on the license application in a timely manner or at all.
Our competitive position has been harmed, and our competitive position and future results may be further harmed in the long term, if there are further changes in the USG’s export controls. Given the increasing strategic importance of AI and rising geopolitical tensions, the USG has changed and may again change the export control rules at any time and further subject a wider range of our products to export restrictions and licensing requirements, negatively impacting our business and financial results. In the event of such change, we may be unable to sell our inventory of such products and may be unable to develop replacement products not subject to the licensing requirements, effectively excluding us from all or part of the China market, as well as other impacted markets, including the Middle East.
While we work to enhance the resiliency and redundancy of our supply chain, which is currently concentrated in the Asia-Pacific region, new and existing export controls or changes to existing export controls could limit alternative manufacturing locations and negatively impact our business. Refer to “Item 1A. Risk Factors” for a discussion of this potential impact.
Macroeconomic Factors
Macroeconomic factors, including inflation, increased interest rates, capital market volatility, global supply chain constraints and global economic and geopolitical developments, may have direct and indirect impacts on our results of operations, particularly demand for our products. While difficult to isolate and quantify, these macroeconomic factors can also impact our supply chain and manufacturing costs, employee wages, costs for capital equipment and value of our investments. Our product and solution pricing generally does not fluctuate with short-term changes in our costs. Within our supply chain, we continuously manage product availability and costs with our vendors. 
24




Israel and Hamas Conflict
We are monitoring the impact of the geopolitical conflict in and around Israel on our operations, including the health and safety of our approximately 4,000 employees in the region who primarily support the research and development, operations, and sales and marketing of our networking products. Our global supply chain for our networking products has not experienced any significant impact. A substantial number of our employees in the region have been called-up for active military duty in Israel. Some of our employees in Israel have been on active military duty for an extended period and they or others may continue to be absent, which may cause disruption to our product development or operations. We have not experienced significant impact or expense to our business; however, if the conflict is further extended, it could impact future product development, operations, and revenue or create other uncertainty for our business.
First Quarter of Fiscal Year 2025 Summary
Three Months EndedQuarter-over-Quarter ChangeYear-over-Year Change
 Apr 28, 2024Jan 28, 2024Apr 30, 2023
($ in millions, except per share data)
Revenue$26,044 $22,103 $7,192 18 %262 %
Gross margin78.4 %76.0 %64.6 %2.4 pts13.8 pts
Operating expenses$3,497 $3,176 $2,508 10 %39 %
Operating income$16,909 $13,615 $2,140 24 %690 %
Net income$14,881 $12,285 $2,043 21 %628 %
Net income per diluted share$5.98 $4.93 $0.82 21 %629 %
We specialize in markets where our computing platforms can provide tremendous acceleration for applications. These platforms incorporate processors, interconnects, software, algorithms, systems, and services to deliver unique value. Our platforms address four large markets where our expertise is critical: Data Center, Gaming, Professional Visualization, and Automotive.
Revenue was $26.0 billion, up 262% from a year ago and up 18% sequentially.
Data Center revenue was up 427% from a year ago and up 23% sequentially. Data Center compute revenue was $19.4 billion, up 478% from a year ago and up 29% sequentially. These increases reflect higher shipments of the NVIDIA Hopper GPU computing platform used for training and inferencing with large language models, recommendation engines, and generative AI applications. Networking revenue was $3.2 billion, up 242% from a year ago on strong growth of InfiniBand end-to-end solutions, and down 5% sequentially due to the timing of supply. Strong sequential Data Center growth was driven by all customer types, led by Enterprise and Consumer Internet companies. Large cloud providers continued to drive strong growth as they deploy and ramp NVIDIA AI infrastructure at scale, representing mid-40% of our Data Center revenue.
Gaming revenue was up 18% from a year ago and down 8% sequentially. The year-on-year increase primarily reflects higher demand. The sequential decrease reflects seasonally lower GPU sales for laptops.
Professional Visualization revenue was up 45% from a year ago and down 8% sequentially. The year-on-year increase primarily reflects higher sell-in to partners following the normalization of channel inventory levels. The sequential decrease was primarily due to desktop workstation GPUs.
Automotive revenue was up 11% from a year ago and up 17% sequentially. The year-on-year increase was driven primarily by self-driving platforms. The sequential increase was driven by AI Cockpit solutions and self-driving platforms.
Gross margin for the first quarter increased significantly from a year ago on strong Data Center revenue growth primarily driven by our Hopper GPU computing platform. Sequentially, gross margin benefited from lower inventory charges.
Operating expenses were up 39% from a year ago and up 10% sequentially. The increases were primarily driven by compensation and benefits, reflecting growth in employees and compensation.
Market Platform Highlights
Data Center revenue for the first quarter of fiscal year 2025 was $22.6 billion, up 427% from a year ago and up 23% from the previous quarter. In our trailing 4 quarters, we estimate that inference drove about 40% of our Data Center revenue. We unveiled the NVIDIA Blackwell platform, our next-generation GPU architecture for the new era of AI computing at trillion-parameter scale and the Blackwell-powered DGX SuperPOD for generative AI supercomputing. Joining Blackwell will be NVIDIA Quantum InfiniBand and Spectrum Ethernet switches designed for massive-scale AI. We also announced NVIDIA AI Enterprise 5.0 with NVIDIA NIM Inference Microservices — to speed enterprise app development. We announced that nine new supercomputers worldwide are using Grace Hopper Superchips to ignite a new era of AI supercomputing.
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Gaming revenue for the first quarter of fiscal year 2025 was $2.6 billion, up 18% from a year ago and down 8% from the previous quarter. We introduced generative AI for digital humans, NVIDIA ACE for speech and animation, and new RTX technologies; and added support for new models.
Professional Visualization revenue for the first quarter of fiscal year 2025 was $427 million, up 45% from a year ago and down 8% from the previous quarter. We introduced NVIDIA RTX 500 and 1000 professional Ada generation laptop GPUs; unveiled NVIDIA RTX A400 and A1000 GPUs for desktop workstations, based on the NVIDIA Ampere architecture; and introduced NVIDIA Omniverse Cloud APIs to power industrial digital twin software tools.
Automotive revenue for the first quarter of fiscal year 2025 was $329 million, up 11% from a year ago and up 17% from the previous quarter. We revealed U.S. and China electric vehicle makers Lucid and IM Motors are using the NVIDIA DRIVE Orin platform; and announced BYD, XPENG, GAC's AION Hyper, Nuro and others will adopt its successor, NVIDIA DRIVE Thor.
Financial Information by Business Segment and Geographic Data
Refer to Note 14 of the Notes to the Condensed Consolidated Financial Statements for disclosure regarding segment information.
Critical Accounting Policies and Estimates
Refer to Part II, Item 7, "Critical Accounting Policies and Estimates" of our Annual Report on Form 10-K for the fiscal year ended January 28, 2024. There have been no material changes to our Critical Accounting Policies and Estimates.
Results of Operations
The following table sets forth, for the periods indicated, certain items in our Condensed Consolidated Statements of Income expressed as a percentage of revenue.
 Three Months Ended
 Apr 28, 2024Apr 30, 2023
Revenue100.0 %100.0 %
     Cost of revenue21.6 35.4 
Gross profit78.4 64.6 
Operating expenses 
     Research and development10.4 26.1 
     Sales, general and administrative3.0 8.8 
Total operating expenses13.4 34.9 
Operating income65.0 29.7 
     Interest income1.4 2.1 
     Interest expense(0.2)(0.9)
     Other, net0.3 (0.2)
Other income (expense), net
1.5 1.0 
Income before income tax66.5 30.7 
Income tax expense9.2 2.3 
Net income57.3 %28.4 %
Revenue
Revenue by Reportable Segments
Three Months Ended
 Apr 28, 2024Apr 30, 2023$
Change
%
Change
 ($ in millions)
Compute & Networking$22,675 $4,460 $18,215 408 %
Graphics3,369 2,732 637 23 %
Total$26,044 $7,192 $18,852 262 %
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Operating Income by Reportable Segments
Three Months Ended
 Apr 28, 2024Apr 30, 2023$
Change
%
Change
 ($ in millions)
Compute & Networking$17,047 $2,160 $14,887 689 %
Graphics1,241 1,046 195 19 %
All Other(1,379)(1,066)(313)29 %
Total$16,909 $2,140 $14,769 690 %
Compute & Networking revenue – The year-on-year increase was due to higher Data Center revenue. Compute GPU grew 497%, due to higher shipments of the NVIDIA Hopper GPU computing platform used for training and inferencing with large language models, recommendation engines, and generative AI applications. Networking was up 242% on strong growth of InfiniBand end-to-end solutions.
Graphics revenue – The year-on-year increase of 18% was led by higher demand for Gaming.
Reportable segment operating income – The year-on-year increase in Compute & Networking and Graphics operating income was driven by higher revenue.
All Other operating loss – The year-on-year increase was due to an increase in stock-based compensation expense.
Concentration of Revenue
Revenue by geographic region is designated based on the billing location even if the revenue may be attributable to end customers, such as enterprises and gamers in a different location. Revenue from sales to customers outside of the United States accounted for 48% and 67% of total revenue for the first quarter of fiscal years 2025 and 2024, respectively.
We refer to customers who purchase products directly from NVIDIA as direct customers, such as original equipment manufacturers, or OEMs, original device manufacturers, or ODMs, system integrators, add-in board manufacturers, and distributors. We also have indirect customers, who purchase products through our direct customers; indirect customers include public cloud providers, consumer internet companies, enterprises, startups, and public sector entities.
Sales to one direct customer, Customer A, represented 13% of total revenue and sales to a second direct customer, Customer B, represented 11% of total revenue for the first quarter of fiscal year 2025, both of which were attributable to the Compute & Networking segment.
There was no direct customer that represented 10% or more of total revenue for the first quarter of fiscal year 2024.
Two indirect customers each represented 10% or more of total revenue for the first quarter of fiscal year 2025; one of these indirect customers purchased our products primarily through direct Customer B. Both were attributable to the Compute & Networking segment.
Gross Profit and Gross Margin
Gross profit consists of total net revenue less cost of revenue.
Our overall gross margin increased to 78.4% for the first quarter of fiscal year 2025 from 64.6% for the first quarter of fiscal year 2024. The year over year increase was primarily due to strong Data Center revenue growth of 427%.
Provisions for inventory and excess inventory purchase obligations totaled $393 million and $134 million for the first quarter of fiscal years 2025 and 2024, respectively. Sales of previously reserved inventory and settlements of excess inventory purchase obligations resulted in a provision release of $114 million and $50 million for the first quarter of fiscal years 2025 and 2024, respectively. The net effect on our gross margin was an unfavorable impact of 1.1% and 1.2% in the first quarter of fiscal years 2025 and 2024, respectively.
For fiscal year 2025, we expect gross margins to be in the mid-70% range.
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Operating Expenses
 Three Months Ended
 Apr 28, 2024Apr 30, 2023$
Change
%
Change
 ($ in millions)
Research and development expenses$2,720 $1,875 $845 45 %
% of net revenue10.4 %26.1 %
Sales, general and administrative expenses777 633 144 23 %
% of net revenue3.0 %8.8 %
Total operating expenses$3,497 $2,508 $989 39 %
% of net revenue13.4 %34.9 %
The increases in research and development expenses for the first quarter of fiscal year 2025 were primarily driven by a $482 million increase in compensation and benefits, including stock-based compensation, reflecting employee growth and compensation increases, and a $242 million increase in compute and infrastructure investments.
The increase in sales, general and administrative expenses for the first quarter of fiscal year 2025 was primarily driven by compensation and benefits, including stock-based compensation, reflecting employee growth and compensation increases.
For fiscal year 2025, we expect operating expenses to grow in the low-40% range.
Other Income (Expense), Net
Three Months Ended
 Apr 28, 2024Apr 30, 2023$
Change