NVIDIA CORP 10-Q

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 ) ( 508 ) ( 317 ) Acquisition-related and other costs ( 144 ) ( 137 ) ( 286 ) ( 311 ) Other 3 3 4 — Total $ ( 1,575 ) $ ( 1,139 ) $ ( 2,954 ) $ ( 2,204 ) Revenue by geographic areas is based upon the billing location of the customer. 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 Six Months Ended Jul 28, 2024 Jul 30, 2023 Jul 28, 2024 Jul 30, 2023 (In millions) Revenue: United States $ 13,022 $ 6,043 $ 26,518 $ 8,428 Taiwan 5,740 2,839 10,113 4,635 Singapore 5,622 1,042 9,659 1,804 China (including Hong Kong) 3,667 2,740 6,158 4,330 Other countries 1,989 843 3,636 1,502 Total revenue $ 30,040 $ 13,507 $ 56,084 $ 20,699 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 % Customer E * 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. 22 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 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) Revenue: Data Center $ 26,272 $ 10,323 $ 48,835 $ 14,607 Compute 22,604 8,612 41,996 11,969 Networking 3,668 1,711 6,839 2,638 Gaming 2,880 2,486 5,527 4,726 Professional Visualization 454 379 881 674 Automotive 346 253 675 549 OEM and Other 88 66 166 143 Total revenue $ 30,040 $ 13,507 $ 56,084 $ 20,699 23