Nvidia Corporation · NASDAQ:NVDA
Nvidia — Investor Presentation (February 2024)
40 slides from Nvidia's investor presentation, Feb 21, 2024
Slide 1: Company Overview
Company Overview February 21, 2024
Slide 2: Forward-looking statements
Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our financial position; our markets, market opportunity, demand and growth drivers; our financial outlook; the benefits, impact, performance, features and ava
Slide 3: Headquarters: Santa Clara, CA
Headquarters: Santa Clara, CA NVIDIA pioneered accelerated computing to help solve impactful challenges classical computers cannot. A quarter of a century in the making, NVIDIA accelerated computing is broadly recognized as the way to advance computing as Moore’s law ends and AI lifts off. NVIDIA’s
Slide 4: NVIDIA's Accelerated Computing Platform
NVIDIA’s Accelerated Computing Platform Full-stack innovation across silicon, systems and software AI APPLICATION FRAMEWORK With nearly three decades of singular focus, NVIDIA is expert at accelerating software and scaling compute by a Million-X, going well beyond Moore’s law PLATFORMS NVIDIA HPC NV
Slide 5: What Is Accelerated Computing?
What Is Accelerated Computing? A full-stack approach: silicon, systems, software Amdahl’s law: The overall system speed-up (S) gained by optimizing a single part of a system by a factor (s) is limited by the proportion of execution time of that part (p). Not just a superfast chip – accelerated compu
Slide 6: Why Accelerated Computing?
Why Accelerated Computing? Advancing computing in the post-Moore’s Law era 109 Trillions of Operations per Second (TOPS) 108 Accelerated computing is needed to tackle the most impactful opportunities of our time—like AI, climate 107 GPU-Computing perf 1000X simulation, drug discovery, ray tracing, a
Slide 7: Waves of Adoption of Accelerated Computing
Waves of Adoption of Accelerated Computing A generational computing platform shift A new computing era has begun Accelerated computing enabled the rise of AI, Industrial Digitalization which is driving a platform shift from general purpose to accelerated computing, and enabling new, never-before-pos
Slide 8: NVIDIA Accelerated Computing for Every Wave
NVIDIA Accelerated Computing for Every Wave Industrial Digitalization NVIDIA Omniverse is a software platform for designing, building, and operating 3D and virtual world simulations. It harnesses the power of NVIDIA graphics and AI technologies and runs on NVIDIA-powered data centers and workstation
Slide 9: NVIDIA's Accelerated Computing Ecosystem
NVIDIA’s Accelerated Computing Ecosystem Developers CUDA Downloads* The NVIDIA accelerated computing platform has attracted the largest ecosystem of developers, supporting a rapidly growing universe of applications and industry innovation 4.7M 48M Developers can engage with NVIDIA through CUDA — 1.8
Slide 10: NVIDIA's Multi-Sided Platform and Flywheel
NVIDIA’s Multi-Sided Platform and Flywheel The virtuous cycle of NVIDIA’s accelerated computing starts with an Scale installed base of several hundred million GPUs, all compatible with the CUDA programming model R&D $ • For developers — NVIDIA’s one architecture and large installed base Installed Ba
Slide 11: Huge ROI from AI Driving a Powerful New Investment Cycle
Huge ROI from AI Driving a Powerful New Investment Cycle AI can augment creativity and productivity by orders of magnitude across industries Knowledge workers will use copilots based on large language models to generate documents, answer questions, or summarize missed meetings, emails and chats — ad
Slide 12: Generative AI
Generative AI The most important computing platform of our generation TEXT ANIMATION AUDIO MOLECULE The era of generative AI has arrived, unlocking new IMAGE PROTEIN opportunities for AI across many different applications Generative AI is trained on large amounts of data 3D DNA to find patterns and
Slide 13: Modern AI is a Data Center Scale Computing Workload
Modern AI is a Data Center Scale Computing Workload Data centers are becoming AI factories: Data as input, intelligence as output Before Transformers = 8X / 2yrs Large Language Models, based on the Transformer architecture, Transformers = 215X / 2yrs are one of today’s most important advanced AI tec
Slide 14: Full-Stack & Data Center Scale Acceleration
Full-Stack & Data Center Scale Acceleration Drive significant cost savings and workload scaling Classical Computing—960 CPU-only servers Accelerated Computing—2 GPU servers Application Application Re-Engineered for Acceleration CPU server racks CUDA-X Acceleration Libraries Magnum IO 25X lower cost
Slide 15: The High ROI of High Compute Performance
The High ROI of High Compute Performance $1 upfront investment in NVIDIA compute and networking can translate to $5 in CSP revenue over 4 years 4-Year Rental Opportunity @$4 per GPU-HR ~$2.5B Rental 4-Year Cost of AI Infrastructure ~$1B 16K GPU Cost DC Facility Build & Operate GPU Compute 25% Perfor
Slide 16: Training & Inference — One Architecture
Training & Inference — One Architecture Cloud | On-Prem | Edge NVIDIA DGX | HGX H100 IN THE DATA CENTER AT THE EDGE NVIDIA L40S NVIDIA L40 Image Generation IGX Industrial-Grade System for Healthcare, Logistics, NVIDIA L4 Manufacturing AI Video NVIDIA H100 | L40S Universal GPUs AGX Functionally-Safe
Slide 17: Powering the AI Industrial Revolution
Powering the AI Industrial Revolution Building and Running Enterprise Gen AI Applications NVIDIA AI Foundation Pre-Trained LLMs Cloud DGX Cloud NVIDIA Enterprise On-Prem Enterprise DGX Cloud AI Chatbot Cloud AI with “RAG” APIs NVIDIA AI Enterprise Enterprise SaaS Enterprise AI chatbots & AI Platform
Slide 18: The NVIDIA AI Foundry Model on DGX Cloud
The NVIDIA AI Foundry Model on DGX Cloud Pre-trained LLMs For building enterprise AI applications NVIDIA’s “AI foundry” service leverages our AI infrastructure and expertise to build custom AI models for enterprise customers — analogous to a semiconductor foundry that uses its infrastructure and exp
Slide 19: AI Factories — A New Class of Data Centers
AI Factories — A New Class of Data Centers For running enterprise AI applications “AI factories” are a new class of data centers specially built for processing, refining and transforming vast amounts of data into NVIDIA AI Enterprise valuable AI models and tokens. Unlike traditional data centers bui
Slide 20: NVIDIA AI Enterprise
NVIDIA AI Enterprise The operating system for enterprise AI NVIDIA AI Enterprise Run Anywhere NVIDIA AI Enterprise is software for deploying and running AI with enterprise-grade security, API stability, manageability and support. Cloud-native and available in every major cloud marketplace. Certified
Slide 21: NVIDIA AI Enterprise
NVIDIA AI Enterprise Broad and deep ecosystem and distribution to reach every enterprise GSI & Service Delivery AI Platforms Software Platforms Private Cloud Public Cloud Marketplaces Server OEMs
Slide 22: NVIDIA Go-to-Market Across Cloud and On-Premises
NVIDIA Go-to-Market Across Cloud and On-Premises Reaching customers everywhere DGX Cloud DGX NVIDIA AI Foundations - Cloud services for customizing and operating generative AI models Partners HGX INFERENCE MGX AGX IGX Cloud On-Prem
Slide 23: Driving Strong & Profitable Growth
Driving Strong & Profitable Growth Operating Income (Non-GAAP, $M) Operating Margin (Non-GAAP) Revenue ($M) $40,000 $37,134 70% 61% 60% $30,000 $60,922 50% $20,000 47% 34% 40% 41% $12,690 34% $9,040 30% $10,000 $6,803 $3,735 20% $0 10% FY20 FY21 FY22 FY23 FY24 Fiscal year ends in January. Refer to A
Slide 24: NVIDIA Gross Margins Reflect Value of Acceleration
NVIDIA Gross Margins Reflect Value of Acceleration Gross Profit (Non-GAAP, $M) Gross Margin (Non-GAAP) Accelerated computing requires full-stack and data $48,000 80% center-scale innovation across silicon, systems, $44,959 algorithms and applications. $42,000 75% 74% $36,000 Significant expertise an
Slide 25: Strong Cash Flow Generation
Strong Cash Flow Generation 35.0 Free Cash Flow (Non-GAAP) Capital Allocation 30.0 $26.9B Share Repurchase 25.0 Utilized cash towards $9.5B of repurchases in FY24 $22.5B Remaining Authorization as of end of Q4 20.0 15.0 Dividend $395M in FY24 10.0 Plan to Maintain1 $8.0B 5.0 $4.3B $4.7B $3.8B Strate
Slide 26: Our Market Platforms at a Glance
Our Market Platforms at a Glance Data Center Gaming Professional Visualization Automotive 78% of FY24 Revenue 17% of FY24 Revenue 3% of FY24 Revenue 2% of FY24 Revenue FY24 Revenue $47.5B FY24 Revenue $10.4B FY24 Revenue $1.6B FY24 Revenue $1.1B 5-YR CAGR 75% 5-YR CAGR 11% 5-YR CAGR 7% 5-YR CAGR 11%
Slide 27: Data Center
Data Center The leading accelerated computing platform Revenue ($M) Leader in AI & HPC 75% 5-YR CAGR $47,525 #1 in AI training and inference Through FY24 Used by all hyperscale and major cloud computing providers and over 40,000 companies Powers over 75% of the TOP500 supercomputers Growth Drivers B
Slide 28: Gaming
Gaming GeForce — the world’s largest gaming platform Revenue ($M) Leader in PC Gaming 11% 5-YR CAGR Strong #1 market position Through FY24 $12,462 15 of the top 15 most popular GPUs on Steam $10,447 Leading performance & innovation $9,067 200M+ gamers on GeForce $7,759 $5,518 Growth Drivers Rising a
Slide 29: GeForce Extends Growth, Large Upgrade Opportunity
GeForce Extends Growth, Large Upgrade Opportunity GeForce Gaming Revenue Installed Base $699+ Cumulative Sell-Through $ NVIDIA 13% CAGR 53% RTX RTX Ada NVIDIA 3YR CAGR Ampere ASP 16% Units -2% 3060+ NVIDIA 25% RTX3060+ Turing Performance 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 FY21 FY24 W
Slide 30: Professional Visualization
Professional Visualization Workstation graphics Revenue ($M) Leader in Workstation Graphics 7% 5-YR CAGR 95%+ market share in graphics Through FY24 $2,111 for workstations 45M Designers and Creators Strong software ecosystem with over 100 RTX $1,544 $1,554 accelerated and supported applications $1,2
Slide 31: Automotive
Automotive Autonomous Vehicle and AI Cockpit Revenue ($M) Leader in Autonomous Driving 11% 5-YR CAGR NVIDIA DRIVE is our end-to-end Autonomous Vehicle (AV) and Through FY24 AI Cockpit platform featuring a full software stack and is powered by NVIDIA (systems-on-a-chip) SoCs in the vehicle $1,091 DRI
Slide 32: $1 Trillion Long-Term Available Market Opportunity
$1 Trillion Long-Term Available Market Opportunity Omniverse Enterprise $150B Industrial Digitalization Autonomous Vehicles Autonomous Machines & Robotics $300B Enterprise NVIDIA AI Enterprise & DGX Cloud $150B Gaming Data Center Systems Cloud Service Providers & Consumer Internet $100B $300B
Slide 33: Financials
Financials
Slide 34: Annual Cash & Cash Flow Metrics
Annual Cash & Cash Flow Metrics Operating Income (Non-GAAP) — $M Operating Cash Flow — $M 37,134 28,090 12,690 9,108 9,040 5,822 5,641 6,803 4,761 3,735 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Free Cash Flow (Non-GAAP) — $M Cash Balance — $M 26,947 25,984 21,208 13,296 10,897 11,561 8,049
Slide 35: Corporate Sustainability
Corporate Sustainability Environmentally Conscious A Place For People To Do Their Life’s Work Management Time Magazine’s 100 Most Influential Companies Fast Company’s Best Workplaces for By FY26, we will engage manufacturing suppliers comprising Innovators at least 67% of NVIDIA’s scope 3 category 1
Slide 36: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 37: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures Gross Margin Acquisition-Related Stock-Based ($ in Millions & Non-GAAP and Other Costs Compensation IP-Related Costs GAAP Margin Percentage) (A) (B) $6,821 — (39) (14) $6,768 FY 2020 62.5% — (0.4) (0.1) 62.0% $10,947 (425) (88) (38) $10,396 FY 20
Slide 38: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Income Acquisition-Related Stock-Based and Margin Acquisition IP-Related Other Non-GAAP and Other Costs Compensation GAAP ($ in Millions & Termination Cost Costs (C) (A) (B) Margin Percentage) $3,735 — (31) (844) (14) — $2,846
Slide 39: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Principal Payments Purchases Related to Property Net Cash on Property ($ in Millions) Free Cash Flow and Equipment Provided by and Equipment and Intangible and Intangible Assets Operating Activities Assets FY 2020 $4,272 489 — $4,761 FY
Slide 40: nVIDIA st”
nVIDIA st”