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 July 28, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 0-23985

NVIDIA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	94-3177549
(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 class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	NVDA	The 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 filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging 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 August 23, 2024, was 24.53 billion.

NVIDIA Corporation

Form 10-Q

For the Quarter Ended July 28, 2024

Table of Contents

		Page
	Part I : Financial Information
Item 1.	Financial Statements (Unaudited)
	a) Condensed Consolidated Statements of Income for the three and six months ended July 28, 2024 and July 30, 2023	3
	b) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 28, 2024 and July 30, 2023	4
	c) Condensed Consolidated Balance Sheets as of July 28, 2024 and January 28, 2024	5
	d) Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended July 28, 2024 and July 30, 2023	6
	e) Condensed Consolidated Statements of Cash Flows for the six months ended July 28, 2024 and July 30, 2023	8
	f) Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
	Part II : Other Information
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
Signature		42

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				Six Months Ended
	Jul 28, 2024		Jul 30, 2023		Jul 28, 2024		Jul 30, 2023
Revenue	$	30,040	$	13,507	$	56,084	$	20,699
Cost of revenue	7,466		4,045		13,105		6,589
Gross profit	22,574		9,462		42,979		14,110
Operating expenses
Research and development	3,090		2,040		5,810		3,916
Sales, general and administrative	842		622		1,618		1,253
Total operating expenses	3,932		2,662		7,428		5,169
Operating income	18,642		6,800		35,551		8,941
Interest income	444		187		803		338
Interest expense	(61)		(65)		(125)		(131)
Other, net	189		59		264		42
Other income (expense), net	572		181		942		249
Income before income tax	19,214		6,981		36,493		9,190
Income tax expense	2,615		793		5,013		958
Net income	$	16,599	$	6,188	$	31,480	$	8,232
Net income per share:
Basic	$	0.68	$	0.25	$	1.28	$	0.33
Diluted	$	0.67	$	0.25	$	1.27	$	0.33
Weighted average shares used in per share computation:
Basic	24,578		24,729		24,599		24,716
Diluted	24,848		24,994		24,869		24,948

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				Six Months Ended
	Jul 28, 2024		Jul 30, 2023		Jul 28, 2024		Jul 30, 2023
Net income	$	16,599	$	6,188	$	31,480	$	8,232
Other comprehensive income (loss), net of tax
Available-for-sale securities:
Net change in unrealized gain (loss)	150		(11)		22		7
Cash flow hedges:
Net change in unrealized gain	23		22		20		8
Reclassification adjustments for net realized loss included in net income	(8)		(12)		(13)		(23)
Net change in unrealized gain (loss)	15		10		7		(15)
Other comprehensive income (loss), net of tax	165		(1)		29		(8)
Total comprehensive income	$	16,764	$	6,187	$	31,509	$	8,224

See accompanying Notes to Condensed Consolidated Financial Statements.

4

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

	Jul 28, 2024		Jan 28, 2024
Assets
Current assets:
Cash and cash equivalents	$	8,563	$	7,280
Marketable securities	26,237		18,704
Accounts receivable, net	14,132		9,999
Inventories	6,675		5,282
Prepaid expenses and other current assets	4,026		3,080
Total current assets	59,633		44,345
Property and equipment, net	4,885		3,914
Operating lease assets	1,556		1,346
Goodwill	4,622		4,430
Intangible assets, net	952		1,112
Deferred income tax assets	9,578		6,081
Other assets	4,001		4,500
Total assets	$	85,227	$	65,728
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	3,680	$	2,699
Accrued and other current liabilities	10,289		6,682
Short-term debt	—		1,250
Total current liabilities	13,969		10,631
Long-term debt	8,461		8,459
Long-term operating lease liabilities	1,304		1,119
Other long-term liabilities	3,336		2,541
Total liabilities	27,070		22,750
Commitments and contingencies - see Note 12
Shareholders’ equity:
Preferred stock	—		—
Common stock	25		25
Additional paid-in capital	12,115		13,109
Accumulated other comprehensive income	56		27
Retained earnings	45,961		29,817
Total shareholders' equity	58,157		42,978
Total liabilities and shareholders' equity	$	85,227	$	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 July 28, 2024 and July 30, 2023

(Unaudited)

	Common Stock Outstanding			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholders' Equity
	Shares	Amount
(In millions, except per share data)
Balances, Apr 28, 2024	24,598	$	25	$	12,628	$	(109)	$	36,598	$	49,142
Net income	—	—		—		—		16,599		16,599
Other comprehensive income	—	—		—		165		—		165
Issuance of common stock from stock plans	38	—		—		—		—		—
Tax withholding related to vesting of restricted stock units	(11)	—		(1,637)		—		—		(1,637)
Shares repurchased	(63)	—		(38)		—		(6,990)		(7,028)
Cash dividends declared and paid ($0.01 per common share)	—	—		—		—		(246)		(246)
Stock-based compensation	—	—		1,162		—		—		1,162
Balances, Jul 28, 2024	24,562	$	25	$	12,115	$	56	$	45,961	$	58,157
Balances, Apr 30, 2023	24,731	$	25	$	12,430	$	(50)	$	12,115	$	24,520
Net income	—	—		—		—		6,188		6,188
Other comprehensive loss	—	—		—		(1)		—		(1)
Issuance of common stock from stock plans	52	—		1		—		—		1
Tax withholding related to vesting of restricted stock units	(16)	—		(672)		—		—		(672)
Shares repurchased	(75)	—		(1)		—		(3,283)		(3,284)
Cash dividends declared and paid ($0.004 per common share)	—	—		—		—		(99)		(99)
Stock-based compensation	—	—		848		—		—		848
Balances, Jul 30, 2023	24,692	$	25	$	12,606	$	(51)	$	14,921	$	27,501

See accompanying Notes to Condensed Consolidated Financial Statements.

6

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity

For the Six Months Ended July 28, 2024 and July 30, 2023

(Unaudited)

	Common Stock Outstanding			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholders' Equity
	Shares	Amount
(In millions, except per share data)
Balances, Jan 28, 2024	24,643	$	25	$	13,109	$	27	$	29,817	$	42,978
Net income	—	—		—		—		31,480		31,480
Other comprehensive income	—	—		—		29		—		29
Issuance of common stock from stock plans	113	—		285		—		—		285
Tax withholding related to vesting of restricted stock units	(32)	—		(3,389)		—		—		(3,389)
Shares repurchased	(162)	—		(71)		—		(14,992)		(15,063)
Cash dividends declared and paid ($0.014 per common share)	—	—		—		—		(344)		(344)
Stock-based compensation	—	—		2,181		—		—		2,181
Balances, Jul 28, 2024	24,562	$	25	$	12,115	$	56	$	45,961	$	58,157
Balances, Jan 29, 2023	24,661	$	25	$	11,948	$	(43)	$	10,171	$	22,101
Net income	—	—		—		—		8,232		8,232
Other comprehensive loss	—	—		—		(8)		—		(8)
Issuance of common stock from stock plans	143	—		247		—		—		247
Tax withholding related to vesting of restricted stock units	(37)	—		(1,179)		—		—		(1,179)
Shares repurchased	(75)	—		(1)		—		(3,283)		(3,284)
Cash dividends declared and paid ($0.008 per common share)	—	—		—		—		(199)		(199)
Stock-based compensation	—	—		1,591		—		—		1,591
Balances, Jul 30, 2023	24,692	$	25	$	12,606	$	(51)	$	14,921	$	27,501

See accompanying Notes to Condensed Consolidated Financial Statements.

7

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

	Six Months Ended
	Jul 28, 2024		Jul 30, 2023
Cash flows from operating activities:
Net income	$	31,480	$	8,232
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	2,164		1,576
Depreciation and amortization	843		749
Gains on investments in non-affiliated entities and publicly-held equity securities, net	(264)		(45)
Deferred income taxes	(3,276)		(1,881)
Other	(288)		(102)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(4,133)		(3,239)
Inventories	(1,380)		861
Prepaid expenses and other assets	(12)		(592)
Accounts payable	801		789
Accrued and other current liabilities	3,314		2,675
Other long-term liabilities	584		236
Net cash provided by operating activities	29,833		9,259
Cash flows from investing activities:
Proceeds from maturities of marketable securities	8,098		5,111
Proceeds from sales of marketable securities	164		—
Purchases of marketable securities	(15,047)		(5,343)
Purchases related to property and equipment and intangible assets	(1,346)		(537)
Acquisitions, net of cash acquired	(317)		(83)
Purchases of investments in non-affiliated entities	(534)		(456)
Proceeds from sales of investments in non-affiliated entities	105		—
Other	—		21
Net cash used in investing activities	(8,877)		(1,287)
Cash flows from financing activities:
Proceeds related to employee stock plans	285		247
Payments related to repurchases of common stock	(14,898)		(3,067)
Repayment of debt	(1,250)		(1,250)
Payments related to tax on restricted stock units	(3,389)		(1,179)
Dividends paid	(344)		(199)
Principal payments on property and equipment and intangible assets	(69)		(31)
Net cash used in financing activities	(19,665)		(5,479)
Change in cash, cash equivalents, and restricted cash	1,291		2,493
Cash, cash equivalents, and restricted cash at beginning of period	7,280		3,389
Cash, cash equivalents, and restricted cash at end of period	$	8,571	$	5,882
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheet:
Cash and cash equivalents	$	8,563	$	5,783
Restricted cash, included in prepaid expenses and other current assets	8		99
Total cash, cash equivalents, and restricted cash	$	8,571	$	5,882
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net	$	7,449	$	328

See accompanying Notes to Condensed Consolidated Financial Statements.

8

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 presentation 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.

In May 2024, we announced a ten-for-one stock split, or the Stock Split, of our issued common stock, which was effected through the filing of an amendment to the Company's Restated Certificate of Incorporation, or the Amendment, with the Secretary of the State of Delaware. In June 2024, the Company filed the Amendment to effect the Stock Split and proportionately increased the number of shares of the Company’s authorized common stock from 8.0 billion to 80.0 billion. Shareholders of record at the close of market on June 6, 2024 received nine additional shares of common stock, distributed after the close of market on June 7, 2024. All share, equity award and per share amounts presented herein have been retrospectively adjusted to reflect the Stock Split.

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 second 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 accounts receivable, cash equivalents and marketable securities, goodwill, income taxes, inventories and product purchase commitments, investigation and settlement costs, litigation, other contingencies, property, plant, and equipment, revenue recognition, and stock-based compensation. These estimates are based on historical facts and 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 requiring disclosures of significant expenses in operating segments. We expect to adopt this standard in our annual reporting starting with fiscal year 2025. 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 includes new and updated income tax disclosures, including disaggregation of rate reconciliation and income taxes paid. 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.

9

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 July 28, 2024 were as follows:

	Operating Lease Obligations
	(In millions)
Fiscal Year:
2025 (excluding first half of fiscal year 2025)	$	144
2026	316
2027	299
2028	280
2029	247
2030 and thereafter	486
Total	1,772
Less imputed interest	218
Present value of net future minimum lease payments	1,554
Less short-term operating lease liabilities	250
Long-term operating lease liabilities	$	1,304

In addition, operating leases of $1.0 billion, primarily for our data centers, are expected to commence during fiscal year 2025 with lease terms of 2 to 10.5 years.

Operating lease expenses were $84 million and $67 million for the second quarter of fiscal years 2025 and 2024, respectively, and $164 million and $126 million for the first half of fiscal years 2025 and 2024, respectively. Short-term and variable lease expenses for the second quarter and first half of fiscal years 2025 and 2024 were not significant.

Other information related to leases was as follows:

	Six Months Ended
	Jul 28, 2024		Jul 30, 2023
	(In millions)
Supplemental cash flows information
Operating cash flow used for operating leases	$	146	$	135
Operating lease assets obtained in exchange for lease obligations	$	405	$	299

As of July 28, 2024, our operating leases had a weighted average remaining lease term of 6.4 years and a weighted average discount rate of 4.03%. 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%.

10

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 3 - Stock-Based Compensation

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 employee stock purchase plan, or ESPP.

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				Six Months Ended
	Jul 28, 2024		Jul 30, 2023		Jul 28, 2024		Jul 30, 2023
	(In millions)
Cost of revenue	$	40	$	31	$	75	$	58
Research and development	832		600		1,559		1,124
Sales, general and administrative	282		211		530		394
Total	$	1,154	$	842	$	2,164	$	1,576

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 Shares	Weighted Average Grant-Date Fair Value Per Share
	(In millions, except per share data)
Balances, Jan 28, 2024	367	$	24.59
Granted	79	$	82.68
Vested	(93)	$	19.23
Canceled and forfeited	(5)	$	28.82
Balances, Jul 28, 2024	348	$	39.16

As of July 28, 2024, aggregate unearned stock-based compensation expense was $12.8 billion, which is expected to be recognized over a weighted average period of 2.5 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				Six Months Ended
	Jul 28, 2024		Jul 30, 2023		Jul 28, 2024		Jul 30, 2023
	(In millions, except per share data)
Numerator:
Net income	$	16,599	$	6,188	$	31,480	$	8,232
Denominator:
Basic weighted average shares	24,578		24,729		24,599		24,716
Dilutive impact of outstanding equity awards	270		265		270		232
Diluted weighted average shares	24,848		24,994		24,869		24,948
Net income per share:
Basic (1)	$	0.68	$	0.25	$	1.28	$	0.33
Diluted (2)	$	0.67	$	0.25	$	1.27	$	0.33
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive	5		104		68		136

(1)    Calculated as net income divided by basic weighted average shares.

(2)    Calculated as net income divided by diluted weighted average shares.

11

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. The 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 $2.6 billion and $5.0 billion for the second quarter and first half of fiscal year 2025, respectively, and $793 million and $958 million for the second quarter and first half of fiscal year 2024, respectively. The income tax expense as a percentage of income before income tax for the second quarter and first half of fiscal year 2025 was 13.6% and 13.7%, respectively, and 11.4% and 10.4% for the second quarter and first half of fiscal year 2024, respectively.

The effective tax rate increased primarily due to a lower percentage of tax benefits from the foreign-derived intangible income deduction relative to the increase in income before income tax.

Effective tax rates for the first half 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.

Given our current and anticipated future earnings, we believe that we may release the valuation allowance associated with certain state deferred tax assets in the near term, which would decrease our income tax expense for the period the release is recorded. The timing and amount of the valuation allowance release could vary based on our assessment of all available evidence.

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 July 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 

The following is a summary of cash equivalents and marketable securities:

	Jul 28, 2024
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value		Reported as
									Cash Equivalents		Marketable Securities
	(In millions)
Debt securities issued by the U.S. Treasury	$	14,051	$	42	$	(10)	$	14,083	$	2,132	$	11,951
Corporate debt securities	11,994		37		(7)		12,024		682		11,342
Money market funds	5,252		—		—		5,252		5,252		—
Debt securities issued by U.S. government agencies	2,461		7		(2)		2,466		50		2,416
Certificates of deposit	141		—		—		141		32		109
Total marketable securities with fair value adjustments recorded in other comprehensive income	$	33,899	$	86	$	(19)	$	33,966	$	8,148	$	25,818
Publicly-held equity securities (1)							$	419	$	—	$	419
Total	$	33,899	$	86	$	(19)	$	34,385	$	8,148	$	26,237

(1)    Fair value adjustments on publicly-held equity securities are recorded in net income. In the second quarter of fiscal year 2025, publicly-held equity securities from investments in non-affiliated entities were classified in marketable securities on our Condensed Consolidated Balance Sheets.

For the second quarter and first half of fiscal year 2025, net unrealized gains on investments in publicly-held equity securities were $132 million and $181 million, respectively. For the second quarter and first half of fiscal year 2024, net unrealized gains on investments in publicly-held equity securities were not significant.

12

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 Equivalents		Marketable Securities
	(In millions)
Corporate debt securities	$	10,126	$	31	$	(5)	$	10,152	$	2,231	$	7,921
Debt securities issued by the U.S. Treasury	9,517		17		(10)		9,524		1,315		8,209
Money market funds	3,031		—		—		3,031		3,031		—
Debt securities issued by U.S. government agencies	2,326		8		(1)		2,333		89		2,244
Certificates of deposit	510		—		—		510		294		216
Foreign government bonds	174		—		—		174		60		114
Total marketable securities with fair value changes recorded in other comprehensive income	$	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 debt securities have been in a continuous loss position:

	Jul 28, 2024
	Less than 12 Months				12 Months or Greater				Total
	Estimated Fair Value		Gross Unrealized Loss		Estimated Fair Value		Gross Unrealized Loss		Estimated Fair Value		Gross Unrealized Loss
	(In millions)
Debt securities issued by U.S. government agencies	$	4,031	$	(8)	$	857	$	(2)	$	4,888	$	(10)
Corporate debt securities	3,170		(5)		396		(2)		3,566		(7)
Debt securities issued by the U.S. Treasury	1,210		(1)		117		(1)		1,327		(2)
Total	$	8,411	$	(14)	$	1,370	$	(5)	$	9,781	$	(19)

	Jan 28, 2024
	Less than 12 Months				12 Months or Greater				Total
	Estimated Fair Value		Gross Unrealized Loss		Estimated Fair Value		Gross Unrealized Loss		Estimated Fair Value		Gross Unrealized Loss
	(In millions)
Debt securities issued by the U.S. Treasury	$	3,343	$	(5)	$	1,078	$	(5)	$	4,421	$	(10)
Corporate debt securities	1,306		(3)		618		(2)		1,924		(5)
Debt securities issued by U.S. government agencies	670		(1)		—		—		670		(1)
Total	$	5,319	$	(9)	$	1,696	$	(7)	$	7,015	$	(16)

Gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates.

13

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The amortized cost and estimated fair value of debt securities included in cash equivalents and marketable securities are shown below by contractual maturity.

	Jul 28, 2024				Jan 28, 2024
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In millions)
Less than one year	$	15,535	$	15,532	$	16,336	$	16,329
Due in 1 - 5 years	18,364		18,434		9,348		9,395
Total	$	33,899	$	33,966	$	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 market prices of similar assets from active markets. We review fair value classification on a quarterly basis.

	Pricing Category	Fair Value at
		Jul 28, 2024		Jan 28, 2024
		(In millions)
Assets
Cash equivalents and marketable securities:
Money market funds	Level 1	$	5,252	$	3,031
Publicly-held equity securities	Level 1	$	419	$	—
Debt securities issued by the U.S. Treasury	Level 2	$	14,083	$	9,524
Corporate debt securities	Level 2	$	12,024	$	10,152
Debt securities issued by U.S. government agencies	Level 2	$	2,466	$	2,333
Certificates of deposit	Level 2	$	141	$	510
Foreign government bonds	Level 2	$	—	$	174
Other assets (Investments in non-affiliated entities):
Publicly-held equity securities	Level 1	$	—	$	225
Liabilities (1)
0.584% Notes Due 2024	Level 2	$	—	$	1,228
3.20% Notes Due 2026	Level 2	$	973	$	970
1.55% Notes Due 2028	Level 2	$	1,126	$	1,115
2.85% Notes Due 2030	Level 2	$	1,380	$	1,367
2.00% Notes Due 2031	Level 2	$	1,068	$	1,057
3.50% Notes Due 2040	Level 2	$	839	$	851
3.50% Notes Due 2050	Level 2	$	1,559	$	1,604
3.70% Notes Due 2060	Level 2	$	386	$	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 non-marketable equity securities, which are primarily investments in privately held companies. In the second quarter of fiscal year 2025, publicly-held equity securities from investments in non-affiliated entities were classified in marketable securities on our Condensed Consolidated Balance Sheets.

Our non-marketable equity securities are recorded in long-term other assets on our Condensed Consolidated Balance Sheets and valued under the measurement alternative. Gains and losses on these investments, realized and unrealized, are recognized in Other income and expense, net on our Condensed Consolidated Statements of Income.

14

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Adjustments to the carrying value of our non-marketable equity securities during the second quarter and first half of fiscal years 2025 and 2024 were as follows:

	Three Months Ended				Six Months Ended
	Jul 28, 2024		Jul 30, 2023		Jul 28, 2024		Jul 30, 2023
	(In millions)
Balance at beginning of period	$	1,463	$	496	$	1,321	$	288
Adjustments related to non-marketable equity securities:
Net additions	294		181		421		402
Unrealized gains	77		—		92		—
Impairments and unrealized losses	(15)		(1)		(15)		(14)
Balance at end of period	$	1,819	$	676	$	1,819	$	676

Non-marketable equity securities had cumulative gross unrealized gains of $362 million and cumulative gross losses and impairments of $60 million as of July 28, 2024.

Note 8 - Amortizable Intangible Assets and Goodwill

The components of our amortizable intangible assets are as follows:

	Jul 28, 2024						Jan 28, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Acquisition-related intangible assets	$	2,752	$	(1,976)	$	776	$	2,642	$	(1,720)	$	922
Patents and licensed technology	442		(266)		176		449		(259)		190
Total intangible assets	$	3,194	$	(2,242)	$	952	$	3,091	$	(1,979)	$	1,112

For the second quarter and first half of fiscal year 2025, amortization expense associated with intangible assets was $146 million and $289 million, respectively. For the second quarter and first half of fiscal year 2024, amortization expense was $146 million and $327 million, respectively.

The following table outlines the estimated amortization expense related to the net carrying amount of intangible assets as of July 28, 2024:

	Future Amortization Expense
	(In millions)
Fiscal Year:
2025 (excluding first half of fiscal year 2025)	$	295
2026	304
2027	192
2028	51
2029	9
2030 and thereafter	101
Total	$	952

In the first half of fiscal year 2025, goodwill increased by $192 million from business combinations assigned to our Compute & Networking reporting unit.

15

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 9 - Balance Sheet Components 

Three customers accounted for 23%, 15%, and 11% of our accounts receivable balance as of July 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:

	Jul 28, 2024		Jan 28, 2024
Inventories:	(In millions)
Raw materials	$	1,895	$	1,719
Work in process	2,111		1,505
Finished goods	2,669		2,058
Total inventories (1)	$	6,675	$	5,282

(1)    During the second quarter of fiscal years 2025 and 2024, we recorded an inventory provision of $345 million and $343 million, respectively and during the first half of fiscal years 2025 and 2024, we recorded an inventory provision of $555 million and $448 million, respectively, in cost of revenue.

	Jul 28, 2024		Jan 28, 2024
Other Assets (Long Term):	(In millions)
Investments in non-affiliated entities	$	1,819	$	1,546
Prepaid supply and capacity agreements (1)	1,313		2,458
Prepaid royalties	352		364
Prepaid tax	331		2
Other	186		130
Total other assets	$	4,001	$	4,500

(1)    As of July 28, 2024 and January 28, 2024, there were $3.3 billion and $2.5 billion of short-term prepaid supply and capacity agreements included in short term Prepaid expenses and other current assets, respectively.

	Jul 28, 2024		Jan 28, 2024
Accrued and Other Current Liabilities:	(In millions)
Customer program accruals	$	3,584	$	2,081
Excess inventory purchase obligations (1)	2,051		1,655
Taxes payable	1,173		296
Deferred revenue (2)	948		764
Accrued payroll and related expenses	941		675
Product warranty and return provisions	868		415
Operating leases	250		228
Licenses and royalties	154		182
Unsettled share repurchases	130		187
Other	190		199
Total accrued and other current liabilities	$	10,289	$	6,682

(1)    During the second quarter of fiscal years 2025 and 2024, we recorded $563 million and $232 million, respectively and during the first half of fiscal years 2025 and 2024, we recorded $746 million and $261 million, respectively, in cost of revenue.

(2)    Deferred revenue includes customer advances and unearned revenue related to hardware support, software support, cloud services, and license and development arrangements. The balance as of July 28, 2024 and January 28, 2024 included $340 million and $233 million of customer advances, respectively.

16

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

	Jul 28, 2024		Jan 28, 2024
Other Long-Term Liabilities:	(In millions)
Income tax payable (1)	$	1,670	$	1,361
Deferred revenue (2)	773		573
Deferred income tax	697		462
Other	196		145
Total other long-term liabilities	$	3,336	$	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 includes unearned revenue 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 half of fiscal years 2025 and 2024:

	Six Months Ended
	Jul 28, 2024		Jul 30, 2023
	(In millions)
Balance at beginning of period	$	1,337	$	572
Deferred revenue additions	1,478		713
Revenue recognized	(1,094)		(556)
Balance at end of period	$	1,721	$	729

We recognized revenue of $323 million and $199 million for the first half of fiscal years 2025 and 2024 respectively, that were included in the prior year end deferred revenue balances.

For revenue contracts with a length greater than one year, $1.3 billion is included in deferred revenue and $123 million has not yet been billed nor recognized as revenue as of July 28, 2024. Approximately 37% of this combined amount will be recognized as revenue over the next twelve months.

Note 10 - Derivative Financial Instruments

We entered into foreign currency forward contracts mitigating the impact of foreign currency exchange rate movements on our operating expenses. These contracts are designated as cash flow hedges. 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 entered into foreign currency forward contracts mitigating the impact of foreign currency movements on monetary assets and liabilities. The change in fair value of these non-designated contracts was recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which was also recorded in other income or expense.

The table below presents the notional value of our foreign currency contracts outstanding:

	Jul 28, 2024		Jan 28, 2024
	(In millions)
Designated as cash flow hedges	$	1,278	$	1,168
Non-designated hedges	$	894	$	597

The unrealized gains and losses or fair value of our foreign currency contracts were not significant as of July 28, 2024 and January 28, 2024.

As of July 28, 2024, all designated foreign currency contracts mature within 18 months and the expected realized gains and losses were not significant.

During the first half of fiscal years 2025 and 2024, the impact of derivative financial instruments designated for cash flow hedges was not significant and the instruments were determined to be highly effective.

17

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 11 - Debt

Long-Term Debt

	Expected Remaining Term (years)	Effective Interest Rate	Carrying Value at
			Jul 28, 2024		Jan 28, 2024
			(In millions)
0.584% Notes Due 2024 (1)	—	0.66%	$	—	$	1,250
3.20% Notes Due 2026	2.1	3.31%	1,000		1,000
1.55% Notes Due 2028	3.9	1.64%	1,250		1,250
2.85% Notes Due 2030	5.7	2.93%	1,500		1,500
2.00% Notes Due 2031	6.9	2.09%	1,250		1,250
3.50% Notes Due 2040	15.7	3.54%	1,000		1,000
3.50% Notes Due 2050	25.7	3.54%	2,000		2,000
3.70% Notes Due 2060	35.7	3.73%	500		500
Unamortized debt discount and issuance costs			(39)		(41)
Net carrying amount			8,461		9,709
Less short-term portion			—		(1,250)
Total long-term portion			$	8,461	$	8,459

(1) We repaid the 0.584% Notes Due 2024 in the second quarter of fiscal year 2025.

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 July 28, 2024, we complied with the required covenants, which are non-financial in nature, under the outstanding notes.

Commercial Paper

We have a $575 million commercial paper program to support general corporate purposes. As of July 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 July 28, 2024, we had outstanding inventory purchases and long-term supply and capacity obligations totaling $27.8 billion, an increase from the prior year due to commitments for Hopper and Blackwell capacity and components. 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. Though, changes to these agreements may result in additional costs. Other non-inventory purchase obligations were $12.0 billion, including $9.8 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.

18

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Total future purchase commitments as of July 28, 2024 are as follows:

	Commitments
	(In millions)
Fiscal Year:
2025 (excluding first half of fiscal year 2025)	$	21,934
2026	10,671
2027	2,778
2028	2,436
2029	1,543
2030 and thereafter	419
Total	$	39,781

Accrual for Product Warranty Liabilities

The estimated amount of product warranty liabilities was $741 million and $306 million as of July 28, 2024 and January 28, 2024, respectively. The estimated product returns and product warranty activity consisted of the following:

	Three Months Ended				Six Months Ended
	Jul 28, 2024		Jul 30, 2023		Jul 28, 2024		Jul 30, 2023
	(In millions)
Balance at beginning of period	$	532	$	77	$	306	$	82
Additions	237		42		471		55
Utilization	(28)		(4)		(36)		(22)
Balance at end of period	$	741	$	115	$	741	$	115

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.

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. On June 17, 2024, the Supreme Court of the United States granted NVIDIA’s petition for a writ of certiorari. Four amicus briefs were filed in support of NVIDIA's petition. Oral arguments are scheduled for November 13, 2024.

19

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

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 July 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.

Note 13 - Shareholders’ Equity 

Capital Return Program 

During the second quarter and first half of fiscal year 2025, we repurchased 62.8 million and 162.1 million shares of our common stock for $7.0 billion and $15.1 billion, respectively. During the second quarter and first half of fiscal year 2024, we repurchased 75.5 million shares of our common stock for $3.3 billion. As of July 28, 2024, we were authorized, subject to certain specifications, to repurchase up to $7.5 billion of our common stock. On August 26, 2024, our Board of Directors approved an additional $50.0 billion to our share repurchase authorization, without expiration. As of August 26, 2024, a total of $53.9 billion was available for repurchase. Our share repurchase program aims to offset dilution from shares issued to employees while maintaining adequate liquidity to meet our operating requirements. We may pursue additional share repurchases as we weigh market factors and other investment opportunities.

From July 29, 2024 through August 26, 2024, we repurchased 31.5 million shares for $3.6 billion pursuant to a Rule 10b5-1 trading plan.

On June 7, 2024, we increased our quarterly cash dividend to $0.01 per share on a post-Stock Split basis to all shareholders of record on June 11, 2024. Our quarterly cash dividend was paid on June 28, 2024.

During the second quarter and first half of fiscal year 2025, we paid $246 million and $344 million in cash dividends, respectively. During the second quarter and first half of fiscal year 2024, we paid $99 million and $199 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.

20

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

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 platforms and artificial intelligence, or AI, solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms; and DGX Cloud computing services.

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 & Networking		Graphics		All Other		Consolidated
	(In millions)
Three Months Ended Jul 28, 2024
Revenue	$	26,446	$	3,594	$	—	$	30,040
Operating income (loss)	$	18,848	$	1,369	$	(1,575)	$	18,642
Three Months Ended Jul 30, 2023
Revenue	$	10,402	$	3,105	$	—	$	13,507
Operating income (loss)	$	6,728	$	1,211	$	(1,139)	$	6,800
Six Months Ended Jul 28, 2024
Revenue	$	49,121	$	6,963	$	—	$	56,084
Operating income (loss)	$	35,896	$	2,609	$	(2,954)	$	35,551
Six Months Ended Jul 30, 2023
Revenue	$	14,862	$	5,837	$	—	$	20,699
Operating income (loss)	$	8,887	$	2,258	$	(2,204)	$	8,941

21

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

	Three Months Ended				Six Months Ended
	Jul 28, 2024		Jul 30, 2023		Jul 28, 2024		Jul 30, 2023
	(In millions)
Reconciling items included in "All Other" category:
Stock-based compensation expense	$	(1,154)	$	(842)	$	(2,164)	$	(1,576)
Unallocated cost of revenue and operating expenses	(280)		(163)