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 Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 Revenue $ 35,082 $ 18,120 $ 91,166 $ 38,819 Cost of revenue 8,926 4,720 22,031 11,309 Gross profit 26,156 13,400 69,135 27,510 Operating expenses Research and development 3,390 2,294 9,200 6,210 Sales, general and administrative 897 689 2,516 1,942 Total operating expenses 4,287 2,983 11,716 8,152 Operating income 21,869 10,417 57,419 19,358 Interest income 472 234 1,275 572 Interest expense ( 61 ) ( 63 ) ( 186 ) ( 194 ) Other, net 36 ( 66 ) 301 ( 24 ) Other income (expense), net 447 105 1,390 354 Income before income tax 22,316 10,522 58,809 19,712 Income tax expense 3,007 1,279 8,020 2,237 Net income $ 19,309 $ 9,243 $ 50,789 $ 17,475 Net income per share: Basic $ 0.79 $ 0.37 $ 2.07 $ 0.71 Diluted $ 0.78 $ 0.37 $ 2.04 $ 0.70 Weighted average shares used in per share computation: Basic 24,533 24,680 24,577 24,700 Diluted 24,774 24,940 24,837 24,940 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 Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 Net income $ 19,309 $ 9,243 $ 50,789 $ 17,475 Other comprehensive income (loss), net of tax Available-for-sale securities: Net change in unrealized gain 49 — 71 7 Cash flow hedges: Net change in unrealized gain (loss) — ( 23 ) 20 ( 14 ) Reclassification adjustments for net realized loss included in net income ( 2 ) ( 14 ) ( 15 ) ( 38 ) Net change in unrealized gain (loss) ( 2 ) ( 37 ) 5 ( 52 ) Other comprehensive income (loss), net of tax 47 ( 37 ) 76 ( 45 ) Total comprehensive income $ 19,356 $ 9,206 $ 50,865 $ 17,430 See accompanying Notes to Condensed Consolidated Financial Statements. 4 NVIDIA Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In millions) (Unaudited) Oct 27, 2024 Jan 28, 2024 Assets Current assets: Cash and cash equivalents $ 9,107 $ 7,280 Marketable securities 29,380 18,704 Accounts receivable, net 17,693 9,999 Inventories 7,654 5,282 Prepaid expenses and other current assets 3,806 3,080 Total current assets 67,640 44,345 Property and equipment, net 5,343 3,914 Operating lease assets 1,755 1,346 Goodwill 4,724 4,430 Intangible assets, net 838 1,112 Deferred income tax assets 10,276 6,081 Other assets 5,437 4,500 Total assets $ 96,013 $ 65,728 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 5,353 $ 2,699 Accrued and other current liabilities 11,126 6,682 Short-term debt — 1,250 Total current liabilities 16,479 10,631 Long-term debt 8,462 8,459 Long-term operating lease liabilities 1,490 1,119 Other long-term liabilities 3,683 2,541 Total liabilities 30,114 22,750 Commitments and contingencies - see Note 12 Shareholders’ equity: Preferred stock — — Common stock 25 25 Additional paid-in capital 11,821 13,109 Accumulated other comprehensive income 103 27 Retained earnings 53,950 29,817 Total shareholders' equity 65,899 42,978 Total liabilities and shareholders' equity $ 96,013 $ 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 October 27, 2024 and October 29, 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, Jul 28, 2024 24,562 $ 25 $ 12,115 $ 56 $ 45,961 $ 58,157 Net income — — — — 19,309 19,309 Other comprehensive income — — — 47 — 47 Issuance of common stock from stock plans 53 — 204 — — 204 Tax withholding related to vesting of restricted stock units ( 15 ) — ( 1,680 ) — — ( 1,680 ) Shares repurchased ( 92 ) — ( 71 ) — ( 11,075 ) ( 11,146 ) Cash dividends declared and paid ($ 0.01 per common share) — — — — ( 245 ) ( 245 ) Stock-based compensation — — 1,253 — — 1,253 Balances, Oct 27, 2024 24,508 $ 25 $ 11,821 $ 103 $ 53,950 $ 65,899 Balances, Jul 30, 2023 24,692 $ 25 $ 12,606 $ ( 51 ) $ 14,921 $ 27,501 Net income — — — — 9,243 9,243 Other comprehensive loss — — — ( 37 ) — ( 37 ) Issuance of common stock from stock plans 71 — 157 — — 157 Tax withholding related to vesting of restricted stock units ( 18 ) — ( 764 ) — — ( 764 ) Shares repurchased ( 83 ) — ( 14 ) — ( 3,705 ) ( 3,719 ) Cash dividends declared and paid ($ 0.004 per common share) — — — — ( 99 ) ( 99 ) Stock-based compensation — — 983 — — 983 Balances, Oct 29, 2023 24,662 $ 25 $ 12,968 $ ( 88 ) $ 20,360 $ 33,265 See accompanying Notes to Condensed Consolidated Financial Statements. 6 NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Shareholders' Equity For the Nine Months Ended October 27, 2024 and October 29, 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 — — — — 50,789 50,789 Other comprehensive income — — — 76 — 76 Issuance of common stock from stock plans 165 — 489 — — 489 Tax withholding related to vesting of restricted stock units ( 46 ) — ( 5,068 ) — — ( 5,068 ) Shares repurchased ( 254 ) — ( 141 ) — ( 26,067 ) ( 26,208 ) Cash dividends declared and paid ($ 0.024 per common share) — — — — ( 589 ) ( 589 ) Stock-based compensation — — 3,432 — — 3,432 Balances, Oct 27, 2024 24,508 $ 25 $ 11,821 $ 103 $ 53,950 $ 65,899 Balances, Jan 29, 2023 24,661 $ 25 $ 11,948 $ ( 43 ) $ 10,171 $ 22,101 Net income — — — — 17,475 17,475 Other comprehensive loss — — — ( 45 ) — ( 45 ) Issuance of common stock from stock plans 214 — 403 — — 403 Tax withholding related to vesting of restricted stock units ( 54 ) — ( 1,942 ) — — ( 1,942 ) Shares repurchased ( 159 ) — ( 15 ) — ( 6,990 ) ( 7,005 ) Cash dividends declared and paid ($ 0.012 per common share) — — — — ( 296 ) ( 296 ) Stock-based compensation — — 2,574 — — 2,574 Balances, Oct 29, 2023 24,662 $ 25 $ 12,968 $ ( 88 ) $ 20,360 $ 33,265 See accompanying Notes to Condensed Consolidated Financial Statements. 7 NVIDIA Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited) Nine Months Ended Oct 27, 2024 Oct 29, 2023 Cash flows from operating activities: Net income $ 50,789 $ 17,475 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 3,416 2,555 Depreciation and amortization 1,321 1,121 (Gains) losses on investments in non-affiliated entities and publicly-held equity securities, net ( 302 ) 24 Deferred income taxes ( 3,879 ) ( 2,411 ) Other ( 365 ) ( 170 ) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable ( 7,694 ) ( 4,482 ) Inventories ( 2,357 ) 405 Prepaid expenses and other assets ( 726 ) ( 337 ) Accounts payable 2,490 1,250 Accrued and other current liabilities 3,918 953 Other long-term liabilities 849 208 Net cash provided by operating activities 47,460 16,591 Cash flows from investing activities: Proceeds from maturities of marketable securities 9,485 8,001 Proceeds from sales of marketable securities 318 — Proceeds from sales of investments in non-affiliated entities 171 — Purchases of marketable securities ( 19,565 ) ( 10,688 ) Purchases related to property and equipment and intangible assets ( 2,159 ) ( 815 ) Purchases of investments in non-affiliated entities ( 1,008 ) ( 897 ) Acquisitions, net of cash acquired ( 465 ) ( 83 ) Other — 25 Net cash used in investing activities ( 13,223 ) ( 4,457 ) Cash flows from financing activities: Proceeds related to employee stock plans 489 403 Payments related to repurchases of common stock ( 25,895 ) ( 6,874 ) Payments related to tax on restricted stock units ( 5,068 ) ( 1,942 ) Repayment of debt ( 1,250 ) ( 1,250 ) Dividends paid ( 589 ) ( 296 ) Principal payments on property and equipment and intangible assets ( 97 ) ( 44 ) Other — ( 1 ) Net cash used in financing activities ( 32,410 ) ( 10,004 ) Change in cash, cash equivalents, and restricted cash 1,827 2,130 Cash, cash equivalents, and restricted cash at beginning of period 7,280 3,389 Cash, cash equivalents, and restricted cash at end of period $ 9,107 $ 5,519 Supplemental disclosure of cash flow information: Cash paid for income taxes, net $ 10,989 $ 4,676 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 third 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 fiscal year 2025 annual report. 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 fiscal year 2026 annual report. We are currently evaluating the impact of this standard on our Consolidated Financial Statements. In November 2024, the FASB issued a new accounting standard requiring disclosures of certain additional expense information on an annual and interim basis, including, among other items, the amounts of purchases of inventory, 9 NVIDIA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Unaudited) employee compensation, depreciation and intangible asset amortization included within each income statement expense caption, as applicable. We expect to adopt this standard in our fiscal year 2028 annual report. We are currently evaluating the impact of this standard on our Consolidated Financial Statements. Note 2 - Leases Our lease obligations primarily consist of operating leases for our headquarters' campus and domestic and international offices and data centers, with lease periods expiring between fiscal years 2025 and 2036. Future minimum lease obligations under our non-cancelable lease agreements as of October 27, 2024 were as follows: Operating Lease Obligations (In millions) Fiscal Year: 2025 (excluding the first nine months of fiscal year 2025) $ 78 2026 336 2027 340 2028 320 2029 288 2030 and thereafter 667 Total 2,029 Less imputed interest 266 Present value of net future minimum lease payments 1,763 Less short-term operating lease liabilities 273 Long-term operating lease liabilities $ 1,490 Between the fourth quarter of fiscal year 2025 and fiscal year 2027, we expect to commence leases with future obligations of $ 4.2 billion primarily of data center and office operating leases, with lease terms of 1.5 to 15.5 years. Operating lease expenses were $ 92 million and $ 69 million for the third quarter, and $ 258 million and $ 195 million for the first nine months, of fiscal years 2025 and 2024, respectively. Short-term and variable lease expenses for the third quarter and first nine months of fiscal years 2025 and 2024 were not significant. Other information related to leases was as follows: Nine Months Ended Oct 27, 2024 Oct 29, 2023 (In millions) Supplemental cash flows information Operating cash flow used for operating leases $ 227 $ 200 Operating lease assets obtained in exchange for lease obligations $ 679 $ 439 As of October 27, 2024, our operating leases have a weighted average remaining lease term of 6.5 years and a weighted average discount rate of 4.15 %. 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 %. Note 3 - Stock-Based Compensation Stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units, or PSUs, that are based on our corporate financial performance targets, market-based PSUs that are performance stock units based on our performance compared to market performance, and the 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: 10 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Three Months Ended Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 (In millions) Cost of revenue $ 50 $ 38 $ 125 $ 96 Research and development 910 701 2,469 1,826 Sales, general and administrative 292 240 822 633 Total $ 1,252 $ 979 $ 3,416 $ 2,555 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) Balance as of Jan 28, 2024 367 $ 24.59 Granted 84 $ 84.70 Vested ( 135 ) $ 23.03 Canceled and forfeited ( 8 ) $ 31.23 Balance as of Oct 27, 2024 308 $ 41.45 As of October 27, 2024, aggregate unearned stock-based compensation expense was $ 12.4 billion, which is expected to be recognized over a weighted average period of 2.3 years for RSUs, PSUs, and market-based PSUs, and one year 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 Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 (In millions, except per share data) Numerator: Net income $ 19,309 $ 9,243 $ 50,789 $ 17,475 Denominator: Basic weighted average shares 24,533 24,680 24,577 24,700 Dilutive impact of outstanding equity awards 241 260 260 240 Diluted weighted average shares 24,774 24,940 24,837 24,940 Net income per share: Basic (1) $ 0.79 $ 0.37 $ 2.07 $ 0.71 Diluted (2) $ 0.78 $ 0.37 $ 2.04 $ 0.70 Anti-dilutive equity awards excluded from diluted net income per share 9 10 72 140 (1) Net income divided by basic weighted average shares. (2) Net income divided by diluted weighted average shares. Diluted net income per share was computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. Note 5 - Income Taxes Income tax expense was $ 3.0 billion and $ 1.3 billion for the third quarter, and $ 8.0 billion and $ 2.2 billion for the first nine months, of fiscal years 2025 and 2024, respectively. The income tax expense as a percentage of income before income 11 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) tax was 13.5 % and 12.2 % for the third quarter, and 13.6 % and 11.3 % for the first nine months, of fiscal years 2025 and 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 and a discrete benefit in fiscal year 2024 due to an IRS audit resolution. Effective tax rates for the first nine months of fiscal years 2025 and 2024 were lower than the U.S. federal statutory rate of 21% due to tax benefits from the foreign-derived intangible income deduction, stock-based compensation, the U.S. federal research tax credit, and income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate. Given our current and possible 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 information. 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 October 27, 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: Oct 27, 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 $ 14,629 $ 72 $ ( 12 ) $ 14,689 $ 1,795 $ 12,894 Corporate debt securities 14,221 74 ( 17 ) 14,278 1,154 13,124 Money market funds 5,147 — — 5,147 5,147 — Debt securities issued by U.S. government agencies 3,542 11 ( 4 ) 3,549 759 2,790 Certificates of deposit 142 — — 142 42 100 Total debt securities with fair value adjustments recorded in other comprehensive income 37,681 157 ( 33 ) 37,805 8,897 28,908 Publicly-held equity securities (1) 472 — 472 Total $ 37,681 $ 157 $ ( 33 ) $ 38,277 $ 8,897 $ 29,380 (1) Fair value adjustments on publicly-held equity securities are recorded in net income. Beginning 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. Net unrealized gains on investments in publicly-held equity securities were not significant and $ 195 million for the third quarter and first nine months of fiscal year 2025, respectively. Net unrealized gains on investments in publicly-held equity securities were not significant for the third quarter and first nine months of fiscal year 2024. 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 debt 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: Oct 27, 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) Corporate debt securities $ 2,967 $ ( 17 ) $ 105 $ — $ 3,072 $ ( 17 ) Debt securities issued by the U.S. Treasury 2,562 ( 12 ) 532 — 3,094 ( 12 ) Debt securities issued by U.S. government agencies 1,134 ( 4 ) 21 — 1,155 ( 4 ) Total $ 6,663 $ ( 33 ) $ 658 $ — $ 7,321 $ ( 33 ) 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. Oct 27, 2024 Jan 28, 2024 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (In millions) Less than one year $ 17,695 $ 17,715 $ 16,336 $ 16,329 Due in 1 - 5 years 19,986 20,090 9,348 9,395 Total $ 37,681 $ 37,805 $ 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 Oct 27, 2024 Jan 28, 2024 (In millions) Assets Cash equivalents and marketable securities: Money market funds Level 1 $ 5,147 $ 3,031 Publicly-held equity securities Level 1 $ 472 $ — Debt securities issued by the U.S. Treasury Level 2 $ 14,689 $ 9,524 Corporate debt securities Level 2 $ 14,278 $ 10,152 Debt securities issued by U.S. government agencies Level 2 $ 3,549 $ 2,333 Certificates of deposit Level 2 $ 142 $ 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 $ 982 $ 970 1.55 % Notes Due 2028 Level 2 $ 1,139 $ 1,115 2.85 % Notes Due 2030 Level 2 $ 1,391 $ 1,367 2.00 % Notes Due 2031 Level 2 $ 1,079 $ 1,057 3.50 % Notes Due 2040 Level 2 $ 847 $ 851 3.50 % Notes Due 2050 Level 2 $ 1,556 $ 1,604 3.70 % Notes Due 2060 Level 2 $ 388 $ 403 (1) 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. Beginning 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 third quarter and first nine months of fiscal years 2025 and 2024 were as follows: Three Months Ended Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 (In millions) Balance at beginning of period $ 1,819 $ 676 $ 1,321 $ 288 Adjustments related to non-marketable equity securities: Net additions 409 341 830 743 Unrealized gains 23 3 115 3 Impairments and unrealized losses ( 14 ) ( 1 ) ( 29 ) ( 15 ) Balance at end of period $ 2,237 $ 1,019 $ 2,237 $ 1,019 Non-marketable equity securities had cumulative gross unrealized gains of $ 374 million and cumulative gross losses and impairments of $ 74 million as of October 27, 2024. Note 8 - Amortizable Intangible Assets and Goodwill The components of our amortizable intangible assets are as follows: Oct 27, 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 $ 2,785 $ ( 2,117 ) $ 668 $ 2,642 $ ( 1,720 ) $ 922 Patents and licensed technology 444 ( 274 ) 170 449 ( 259 ) 190 Total intangible assets $ 3,229 $ ( 2,391 ) $ 838 $ 3,091 $ ( 1,979 ) $ 1,112 Amortization expense associated with intangible assets was $ 149 million and $ 144 million for the third quarter, and $ 438 million and $ 471 million for the first nine months, of fiscal years 2025 and 2024, respectively. The following table outlines the estimated amortization expense related to the net carrying amount of intangible assets as of October 27, 2024: Future Amortization Expense (In millions) Fiscal Year: 2025 (excluding the first nine months of fiscal year 2025) $ 150 2026 317 2027 203 2028 57 2029 10 2030 and thereafter 101 Total $ 838 In the first nine months of fiscal year 2025, goodwill increased by $ 294 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 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. Four direct customers accounted for 18 %, 13 %, 11 % and 11 % of our accounts receivable balance as of October 27, 2024. Two direct customers accounted for 24 % and 11 % of our accounts receivable balance as of January 28, 2024. Certain balance sheet components are as follows: Oct 27, 2024 Jan 28, 2024 Inventories: (In millions) Raw materials $ 1,846 $ 1,719 Work in process 2,881 1,505 Finished goods 2,927 2,058 Total inventories (1) $ 7,654 $ 5,282 (1) We recorded an inventory provision of $ 322 million and $ 208 million for the third quarter, and $ 876 million and $ 657 million for the first nine months, of fiscal years 2025 and 2024, respectively, in cost of revenue. Oct 27, 2024 Jan 28, 2024 Other Assets (Long Term): (In millions) Investments in non-affiliated entities $ 2,237 $ 1,546 Prepaid supply and capacity agreements (1) 2,041 2,458 Income tax receivable 568 — Prepaid royalties 346 364 Other 245 132 Total other assets $ 5,437 $ 4,500 (1) Prepaid supply and capacity agreements of $ 3.2 billion and $ 2.5 billion were included in Prepaid expenses and other current assets as of October 27, 2024 and January 28, 2024, respectively. Oct 27, 2024 Jan 28, 2024 Accrued and Other Current Liabilities: (In millions) Customer program accruals $ 4,740 $ 2,081 Excess inventory purchase obligations (1) 1,728 1,655 Taxes payable 1,356 296 Product warranty and return provisions 1,107 415 Deferred revenue (2) 752 764 Accrued payroll and related expenses 677 675 Operating leases 273 228 Unsettled share repurchases 180 187 Licenses and royalties 148 182 Other 165 199 Total accrued and other current liabilities $ 11,126 $ 6,682 (1) We recorded $ 543 million and $ 473 million for the third quarter, and $ 1.3 billion and $ 734 million for the first nine months, of fiscal years 2025 and 2024, respectively, in cost of revenue. (2) Includes customer advances and unearned revenue related to hardware support, software support, cloud services, and license and development arrangements. The balance as of October 27, 2024 and January 28, 2024 included $ 101 million and $ 233 million of customer advances, respectively. 16 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Oct 27, 2024 Jan 28, 2024 Other Long-Term Liabilities: (In millions) Income tax payable (1) $ 1,945 $ 1,361 Deferred revenue (2) 833 573 Deferred income tax 790 462 Other 115 145 Total other long-term liabilities $ 3,683 $ 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) Includes unearned revenue related to hardware support, software support and cloud services. Deferred Revenue The following table shows the changes in short- and long-term deferred revenue during the first nine months of fiscal years 2025 and 2024: Nine Months Ended Oct 27, 2024 Oct 29, 2023 (In millions) Balance at beginning of period $ 1,337 $ 572 Deferred revenue additions 2,115 1,269 Revenue recognized ( 1,867 ) ( 903 ) Balance at end of period $ 1,585 $ 938 We recognized revenue of $ 585 million and $ 256 million in the first nine months of fiscal years 2025 and 2024, respectively, that were included in the prior year end deferred revenue balances. As of October 27, 2024, revenue related to remaining performance obligations from contracts greater than one year in length was $ 1.6 billion, which includes $ 1.4 billion from deferred revenue and $ 187 million which has not yet been billed nor recognized as revenue. Approximately 37 % of revenue from contracts greater than one year in length will be recognized over the next twelve months . Note 10 - Derivative Financial Instruments We utilize foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. The foreign currency forward contracts for operating expenses 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. For our foreign currency contracts for 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: Oct 27, 2024 Jan 28, 2024 (In millions) Designated as cash flow hedges $ 1,360 $ 1,168 Non-designated hedges $ 728 $ 597 The unrealized gains and losses or fair value of our foreign currency contracts were not significant as of October 27, 2024 and January 28, 2024. 17 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) As of October 27, 2024, all designated foreign currency contracts mature within 18 months and any unrealized gains and losses were not significant. During the first nine months 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. Note 11 - Debt Long-Term Debt Expected Remaining Term (years) Effective Interest Rate Carrying Value at Oct 27, 2024 Jan 28, 2024 (In millions) 0.584 % Notes Due 2024 (1) — 0.66 % $ — $ 1,250 3.20 % Notes Due 2026 1.9 3.31 % 1,000 1,000 1.55 % Notes Due 2028 3.6 1.64 % 1,250 1,250 2.85 % Notes Due 2030 5.4 2.93 % 1,500 1,500 2.00 % Notes Due 2031 6.6 2.09 % 1,250 1,250 3.50 % Notes Due 2040 15.4 3.54 % 1,000 1,000 3.50 % Notes Due 2050 25.4 3.54 % 2,000 2,000 3.70 % Notes Due 2060 35.4 3.73 % 500 500 Unamortized debt discount and issuance costs ( 38 ) ( 41 ) Net carrying amount 8,462 9,709 Less short-term portion — ( 1,250 ) Total long-term portion $ 8,462 $ 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 is calendar year. As of October 27, 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 October 27, 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 October 27, 2024, we had outstanding inventory purchase and long-term supply and capacity obligations totaling $ 28.9 billion, an increase from the prior year primarily due to commitments for 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, or 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 $ 13.2 billion, including $ 11.3 billion of multi-year cloud service agreements. We expect our cloud service agreements to primarily be used to support our research and development efforts, as well as our DGX Cloud offerings. 18 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Total future purchase commitments as of October 27, 2024 are as follows: Commitments (In millions) Fiscal Year: 2025 (excluding the first nine months of fiscal year 2025) $ 14,178 2026 18,895 2027 3,381 2028 2,979 2029 1,990 2030 and thereafter 621 Total $ 42,044 Accrual for Product Warranty Liabilities The estimated amount of product warranty liabilities was $ 1.0 billion and $ 306 million as of October 27, 2024 and January 28, 2024, respectively. The estimated product returns and product warranty activity consisted of the following: Three Months Ended Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 (In millions) Balance at beginning of period $ 741 $ 115 $ 306 $ 82 Additions 304 50 775 105 Utilization ( 36 ) ( 23 ) ( 72 ) ( 45 ) Balance at end of period $ 1,009 $ 142 $ 1,009 $ 142 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. Briefing concluded on October 25, 2024 and the Supreme Court heard oral arguments on 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 October 27, 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 We repurchased 92 million and 83 million shares of our common stock for $ 11.1 billion and $ 3.7 billion during the third quarter, and 254 million and 159 million shares of our common stock for $ 26.2 billion and $ 7 billion during the first nine months, of fiscal years 2025 and 2024, respectively. On August 26, 2024, our Board of Directors approved an additional $ 50 billion to our share repurchase authorization, without expiration. As of October 27, 2024, we were authorized, subject to certain specifications, to repurchase up to $ 46.4 billion of our common stock. 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 October 28, 2024 through November 15, 2024, we repurchased 19 million shares for $ 2.7 billion pursuant to a pre-established trading plan. We paid cash dividends to our shareholders of $ 245 million and $ 99 million during the third quarter, and $ 589 million and $ 296 million during the first nine months, of fiscal years 2025 and 2024, respectively. Our cash dividend program and the payment of future cash dividends under that program are subject to our Board of Directors' continuing determination that the dividend program and the declaration of dividends thereunder are in the best interests of our shareholders. Note 14 - Segment Information Our Chief Executive Officer is our chief operating decision maker, or CODM, and reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance. 20 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) 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 review 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 Oct 27, 2024 Revenue $ 31,036 $ 4,046 $ — $ 35,082 Operating income (loss) $ 22,081 $ 1,502 $ ( 1,714 ) $ 21,869 Three Months Ended Oct 29, 2023 Revenue $ 14,645 $ 3,475 $ — $ 18,120 Operating income (loss) $ 10,262 $ 1,493 $ ( 1,338 ) $ 10,417 Nine Months Ended Oct 27, 2024 Revenue $ 80,157 $ 11,009 $ — $ 91,166 Operating income (loss) $ 57,977 $ 4,111 $ ( 4,669 ) $ 57,419 Nine Months Ended Oct 29, 2023 Revenue $ 29,507 $ 9,312 $ — $ 38,819 Operating income (loss) $ 19,149 $ 3,751 $ ( 3,542 ) $ 19,358 Three Months Ended Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ ( 1,252 ) $ ( 979 ) $ ( 3,416 ) $ ( 2,555 ) Unallocated cost of revenue and operating expenses ( 307 ) ( 198 ) ( 816 ) ( 515 ) Acquisition-related and other costs ( 155 ) ( 135 ) ( 441 ) ( 446 ) Other — ( 26 ) 4 ( 26 ) Total $ ( 1,714 ) $ ( 1,338 ) $ ( 4,669 ) $ ( 3,542 ) 21 NVIDIA Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited) Revenue by geographic area 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 area was as follows: Three Months Ended Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 (In millions) Revenue: United States $ 14,800 $ 6,302 $ 41,318 $ 14,730 Singapore 7,697 2,702 17,356 4,506 China (including Hong Kong) 5,416 4,030 11,574 8,360 Taiwan 5,153 4,333 15,266 8,968 Other countries 2,016 753 5,652 2,255 Total revenue $ 35,082 $ 18,120 $ 91,166 $ 38,819 We refer to customers who purchase products directly from NVIDIA as direct customers, such as add-in board manufacturers, distributors, ODMs, 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 Nine Months Ended Oct 27, 2024 Oct 27, 2024 Customer A 12 % * Customer B 12 % 11 % Customer C 12 % 11 % Customer D * 12 % * Less than 10% of total revenue The customer references of A-D above may represent different customers than those reported in a previous period. Sales to one direct customer represented 12 % of total revenue for the third quarter of fiscal year 2024, and sales to a second direct customer represented 11 % of total revenue for the first nine months of fiscal year 2024, both of which were 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 Nine Months Ended Oct 27, 2024 Oct 29, 2023 Oct 27, 2024 Oct 29, 2023 (In millions) Revenue: Data Center $ 30,771 $ 14,514 $ 79,606 $ 29,121 Compute 27,644 11,908 69,640 23,877 Networking 3,127 2,606 9,966 5,244 Gaming 3,279 2,856 8,806 7,582 Professional Visualization 486 416 1,367 1,090 Automotive 449 261 1,124 810 OEM and Other 97 73 263 216 Total revenue $ 35,082 $ 18,120 $ 91,166 $ 38,819 23