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Item 1. Financial Statements

2024-08-28 compared with 2024-05-29 · 236 added, 199 removed, 490 unchanged (47% of the section changed)

3 unchanged sentences

(In millions, except per share data)

Three Months Ended

Apr 28, 2024 Apr 30, 2023

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

10 unchanged sentences

Other income (expense), net

572 181 942 249

Income before income tax 19,214 6,981 36,493 9,190

11 unchanged sentences

(In millions)

Three Months Ended

Apr 28, 2024 Apr 30, 2023

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 loss, net of tax

Other comprehensive income (loss), net of tax

Available-for-sale securities:

1 unchanged sentence

Cash flow hedges:

Net change in unrealized loss ( 4 ) ( 13 )

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 loss ( 8 ) ( 24 )

Other comprehensive loss, net of tax ( 136 ) ( 7 )

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

3 unchanged sentences

(In millions)

Apr 28, 2024 Jan 28, 2024

Jul 28, 2024 Jan 28, 2024

Current assets:

27 unchanged sentences

Additional paid-in capital 12,115 13,109

Accumulated other comprehensive income (loss) ( 109 ) 27

Accumulated other comprehensive income 56 27

Retained earnings 45,961 29,817

4 unchanged sentences

Condensed Consolidated Statements of Shareholders' Equity

For the Three Months Ended April 28, 2024 and April 30, 2023

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

Outstanding Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Shareholders' Equity

1 unchanged sentence

(In millions, except per share data)

Balances, Jan 28, 2024 2,464 $ 2 $ 13,132 $ 27 $ 29,817 $ 42,978

Balances, Apr 28, 2024 24,598 $ 25 $ 12,628 $ ( 109 ) $ 36,598 $ 49,142

Net income — — — — 16,599 16,599

Other comprehensive loss — — — ( 136 ) — ( 136 )

Other comprehensive income — — — 165 — 165

Issuance of common stock from stock plans 38 — — — — —

4 unchanged sentences

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.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity

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

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 )

1 unchanged sentence

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)

1 unchanged sentence

Stock-based compensation — — 1,591 — — 1,591

Balances, Apr 30, 2023 2,473 $ 2 $ 12,453 $ ( 50 ) $ 12,115 $ 24,520

Balances, Jul 30, 2023 24,692 $ 25 $ 12,606 $ ( 51 ) $ 14,921 $ 27,501

See accompanying Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(In millions)

Three Months Ended

Apr 28, 2024 Apr 30, 2023

Six Months Ended

Jul 28, 2024 Jul 30, 2023

Cash flows from operating activities:

3 unchanged sentences

Depreciation and amortization 843 749

Realized and unrealized (gains) losses on investments in non-affiliated entities, net ( 69 ) 14

Gains on investments in non-affiliated entities and publicly-held equity securities, net ( 264 ) ( 45 )

Deferred income taxes ( 3,276 ) ( 1,881 )

14 unchanged sentences

Acquisitions, net of cash acquired ( 317 ) ( 83 )

Investments in non-affiliated entities ( 135 ) ( 221 )

Purchases of investments in non-affiliated entities ( 534 ) ( 456 )

Proceeds from sales of investments in non-affiliated entities 105 —

Net cash used in investing activities ( 8,877 ) ( 1,287 )

2 unchanged sentences

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 )

2 unchanged sentences

Net cash used in financing activities ( 19,665 ) ( 5,479 )

Change in cash and cash equivalents 307 1,690

Cash and cash equivalents at beginning of period 7,280 3,389

Cash and cash equivalents at end of period $ 7,587 $ 5,079

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.

6 unchanged sentences

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.

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.

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

2 unchanged sentences

Fiscal years 2025 and 2024 are both 52-week years.

The first quarters of fiscal years 2025 and 2024 were both 13-week quarters.

The second quarters of fiscal years 2025 and 2024 were both 13-week quarters.

Principles of Consolidation

5 unchanged sentences

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.

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 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.

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 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.

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.

4 unchanged sentences

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:

Future minimum lease payments under our non-cancelable operating leases as of July 28, 2024 were as follows:

Operating Lease Obligations

(In millions)

2025 (excluding first quarter of fiscal year 2025)

2025 (excluding first half of fiscal year 2025)

2030 and thereafter

3 unchanged sentences

Long-term operating lease liabilities $ 1,304

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.

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:

Three Months Ended

Apr 28, 2024 Apr 30, 2023

Six Months Ended

Jul 28, 2024 Jul 30, 2023

(In millions)

Supplemental cash flows information

Operating cash flows used for operating leases $ 69 $ 61

Operating cash flow used for operating leases $ 146 $ 135

Operating lease assets obtained in exchange for lease obligations $ 405 $ 299

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 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 %.

2 unchanged sentences

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, 2024 Apr 30, 2023

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)

11 unchanged sentences

Vested ( 93 ) $ 19.23

Balances, Apr 28, 2024 38 $ 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.

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

Apr 28, 2024 Apr 30, 2023

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

(In millions, except per share data)

12 unchanged sentences

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.

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 $ 2.4 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.

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.

1 unchanged sentence

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 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.

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

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:

5 unchanged sentences

(In millions)

Corporate debt securities $ 11,397 $ 3 $ ( 43 ) $ 11,357 $ 733 $ 10,624

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 —

2 unchanged sentences

Certificates of deposit 141 — — 141 32 109

Foreign government bonds 14 — — 14 — 14

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.

NVIDIA Corporation and Subsidiaries

14 unchanged sentences

Foreign government bonds 174 — — 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:

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:

Less than 12 Months 12 Months or Greater Total

1 unchanged sentence

(In millions)

Debt securities issued by the U.S.

Treasury $ 9,720 $ ( 60 ) $ 756 $ ( 2 ) $ 10,476 $ ( 62 )

Corporate debt securities 6,943 ( 42 ) 188 ( 1 ) 7,131 ( 43 )

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 )

8 unchanged sentences

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.

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

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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

Apr 28, 2024 Jan 28, 2024

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

4 unchanged sentences

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.

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

Apr 28, 2024 Jan 28, 2024

Jul 28, 2024 Jan 28, 2024

(In millions)

1 unchanged sentence

Money market funds Level 1 $ 5,252 $ 3,031

Corporate debt securities Level 2 $ 11,357 $ 10,152

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.

23 unchanged sentences

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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Our investments in non-affiliated entities include non-marketable equity securities, which are primarily investments in privately held companies.

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, 2024 Apr 30, 2023

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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)

5 unchanged sentences

Balance at end of period $ 1,819 $ 676 $ 1,819 $ 676

The following table summarizes the cumulative gross unrealized gains, losses and impairments related to non-marketable equity securities:

(In millions)

Cumulative gross unrealized gains $ 285

Cumulative gross impairments and unrealized losses ( 45 )

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:

Apr 28, 2024 Jan 28, 2024

Jul 28, 2024 Jan 28, 2024

Amount Accumulated

6 unchanged sentences

Total intangible assets $ 3,194 $ ( 2,242 ) $ 952 $ 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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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

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)

2025 (excluding first quarter of fiscal year 2025)

2025 (excluding first half of fiscal year 2025)

2030 and thereafter 101

In the first quarter of fiscal year 2025, goodwill increased by $ 23 million from business combinations, and was assigned to our Compute & Networking segment.

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

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Note 9 - Balance Sheet Components

Two customers accounted for 16 % and 15 % of our accounts receivable balance as of April 28, 2024.

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:

Apr 28, 2024 Jan 28, 2024

Inventories (1):

Jul 28, 2024 Jan 28, 2024

(In millions)

3 unchanged sentences

Total inventories (1) $ 6,675 $ 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, 2024 Jan 28, 2024

Other Assets:

(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)

Prepaid supply and capacity agreements (1) $ 2,232 $ 2,458

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 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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Apr 28, 2024 Jan 28, 2024

(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)

Taxes payable (1) $ 3,881 $ 296

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

Product warranty and return provisions 643 415

Accrued payroll and related expenses 941 675

Unsettled share repurchases 262 187

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) 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, 2024 Jan 28, 2024

(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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Jul 28, 2024 Jan 28, 2024

Other Long-Term Liabilities:

3 unchanged sentences

Deferred income tax 697 462

Licenses payable 60 80

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 primarily includes deferrals related to hardware support and software support.

(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 quarter of fiscal years 2025 and 2024:

Apr 28, 2024 Apr 30, 2023

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 during the period 553 287

Revenue recognized during the period ( 341 ) ( 262 )

Deferred revenue additions 1,478 713

Revenue recognized ( 1,094 ) ( 556 )

Balance at end of period $ 1,721 $ 729

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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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 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.

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 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.

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:

Apr 28, 2024 Jan 28, 2024

Jul 28, 2024 Jan 28, 2024

(In millions)

1 unchanged sentence

Non-designated hedges $ 894 $ 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.

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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Note 11 - Debt

2 unchanged sentences

Interest Rate Carrying Value at

Apr 28, 2024 Jan 28, 2024

Jul 28, 2024 Jan 28, 2024

(In millions)

19 unchanged sentences

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.

3 unchanged sentences

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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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 April 28, 2024, we had no commercial paper outstanding.

As of July 28, 2024, we had no commercial paper outstanding.

Note 12 - Commitments and Contingencies

1 unchanged sentence

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.

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.

These changes may result in costs incurred through the date of cancellation.

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.

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

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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

(In millions)

2025 (excluding first quarter of fiscal year 2025)

2025 (excluding first half of fiscal year 2025)

2030 and thereafter

Total $ 39,781

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 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

Apr 28, 2024 Apr 30, 2023

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

(In millions)

7 unchanged sentences

We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Securities Class Action and Derivative Lawsuits

10 unchanged sentences

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.

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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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.

16 unchanged sentences

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.

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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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.

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 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.

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.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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;

automotive artificial intelligence, or AI, Cockpit, autonomous driving development agreements, and autonomous vehicle solutions;

electric vehicle computing platforms;

The Compute & Networking segment includes our Data Center accelerated computing platforms and artificial intelligence, or AI, solutions and software;

automotive platforms and autonomous and electric vehicle solutions;

Jetson for robotics and other embedded platforms;

NVIDIA AI Enterprise and other software;

and DGX Cloud.

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;

13 unchanged sentences

(In millions)

Three Months Ended Apr 28, 2024

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 Apr 30, 2023

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

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

Three Months Ended

Apr 28, 2024 Apr 30, 2023

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

(In millions)

6 unchanged sentences

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.

The end customer and shipping location may be different from our customer’s billing location.

For example, most shipments associated with Singapore revenue were to locations other than Singapore and shipments to Singapore were insignificant.

Revenue by geographic areas was as follows:

Three Months Ended

Apr 28, 2024 Apr 30, 2023

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

(In millions)

5 unchanged sentences

Total revenue $ 30,040 $ 13,507 $ 56,084 $ 20,699

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, 2024 Apr 30, 2023

We refer to customers who purchase products directly from NVIDIA as direct customers, such as add-in board manufacturers, distributors, original device manufacturers, or ODMs, original equipment manufacturers, or OEMs, and system integrators.

We have certain customers that may purchase products directly from NVIDIA and may use either internal resources or third-party system integrators to complete their build.

We also have indirect customers, who purchase products through our direct customers;

indirect customers include cloud service providers, consumer internet companies, enterprises, and public sector entities.

Sales to direct customers which represented 10% or more of total revenue, all of which were primarily attributable to the Compute & Networking segment, are presented in the following table:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 28, 2024

Customer A 14 % 14 %

Customer B 11 % *

Customer C 11 % *

Customer D 10 % 10 %

* Less than 10% of total revenue

One customer represented approximately 17 % and 13 % of total revenue for the second quarter and first half of fiscal year 2024, respectively, and was attributable to the Compute & Networking segment.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

The following table summarizes revenue by specialized markets:

Three Months Ended Six Months Ended

Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023

(In millions)

7 unchanged sentences

Total revenue $ 30,040 $ 13,507 $ 56,084 $ 20,699

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

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

(In millions, except per share data)

$ 14,881 $ 2,043 $ 29,760 $ 4,368 $ 9,752

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:

$ 0.60 $ 0.08 $ 1.21 $ 0.18 $ 0.39

$ 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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements