Outlook
NVIDIA’s outlook for the second quarter of fiscal 2024 is as follows:

• Revenue is expected to be $11.00 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are expected to be 68.6% and 70.0%, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $2.71 billion and $1.90 billion, respectively.
• GAAP and non-GAAP other income and expense are expected to be an income of approximately $90 million, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are expected to be 14.0%, plus or minus 1%, excluding any discrete items.
  

Highlights

NVIDIA achieved progress since its previous earnings announcement in these areas: 

Data Center

• First-quarter revenue was a record $4.28 billion, up 14% from a year ago and up 18% from the previous quarter.
• Launched four inference platforms that combine the company’s full-stack inference software with the latest NVIDIA Ada, NVIDIA Hopper™ and NVIDIA Grace Hopper™ processors.
• Announced that Google Cloud is the first cloud provider offering the new NVIDIA L4 Tensor Core GPU to accelerate generative AI applications.
• Introduced NVIDIA AI Foundations to help businesses create and operate custom large language models and generative AI models trained with their own proprietary data for domain-specific tasks.
• Unveiled the NVIDIA cuLitho software library for computational lithography to accelerate the design and manufacturing of next-gen semiconductors.
• Expanded its partners offering new products and services based on the NVIDIA H100 Tensor Core GPU — including Amazon Web Services, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure.
• Partnered with ServiceNow to build generative AI across enterprise IT.
• Announced a collaboration with Medtronic to build an AI platform for medical devices.
• Joined with Dell Technologies in Project Helix to deliver full-stack solutions to help enterprises build and deploy trustworthy generative AI applications.
• Announced it is integrating NVIDIA AI Enterprise software into Microsoft’s Azure Machine Learning to help enterprises accelerate their AI initiatives.

Gaming

• First-quarter revenue was $2.24 billion, down 38% from a year ago and up 22% from the previous quarter.
• Announced the GeForce RTX™ 4060 family of GPUs, bringing the advancements of NVIDIA Ada Lovelace architecture and DLSS, starting at $299.
• Launched the GeForce RTX 4070 GPU based on the Ada architecture, which enables DLSS 3, real-time ray-tracing and the ability to run most modern games at over 100 frames per second at 1440p resolution.
• Added 36 DLSS gaming titles, bringing the total number of games and apps to 300.
• Made path tracing available for the first time on a major gaming title through collaboration with CD PROJEKT RED on an update to Cyberpunk 2077. 
• Expanded GeForce NOW’s game titles to more than 1,600, including the first Microsoft Xbox game, Gears 5. 

Professional Visualization

• First-quarter revenue was $295 million, down 53% from a year ago and up 31% from the previous quarter.
• Announced NVIDIA Omniverse™ Cloud, a fully managed service running in Microsoft Azure, for the development and deployment of industrial metaverse applications.
• Expanded its collaboration with Microsoft to connect Microsoft 365 applications with Omniverse. 
• Announced six new NVIDIA RTX™ GPUs for mobile and desktop workstations based on the Ada architecture.

Automotive

• First-quarter revenue was a record $296 million, up 114% from a year ago and up 1% from the previous quarter.
• Announced that its automotive design win pipeline has grown to $14 billion over the next six years, up from $11 billion a year ago.
• Announced that the world’s leading electric vehicle maker BYD will extend its use of NVIDIA DRIVE Orin™ across new models.
  

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com/.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2024 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its second quarter of fiscal 2024.

Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude acquisition termination costs, stock-based compensation expense, acquisition-related and other costs, IP-related costs, legal settlement costs, other, losses from non-affiliated investments, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases of property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.

About NVIDIA
Since its founding in 1993, NVIDIA (NASDAQ: NVDA) has been a pioneer in accelerated computing. The company’s invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, ignited the era of modern AI and is fueling the creation of the industrial metaverse. NVIDIA is now a full-stack computing company with data-center-scale offerings that are reshaping industry. More information at https://nvidianews.nvidia.com/.

For further information, contact:

Simona Jankowski		Robert Sherbin
Investor Relations		Corporate Communications
NVIDIA Corporation		NVIDIA Corporation
Email Contact		Email Contact

Certain statements in this press release including, but not limited to, statements as to: the computer industry going through two simultaneous transitions – accelerated computing and generative AI; installed global data center infrastructure transitioning from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process; NVIDIA’s entire data center family of products being in production; NVIDIA significantly increasing supply to meet surging demand; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook and expected tax rates for the second quarter of fiscal 2024; the benefits, impact, performance, features and availability of our products and technologies, including NVIDIA Ada, NVIDIA Hopper, NVIDIA Grace Hopper CPU, NVIDIA L4 Tensor Core GPU, NVIDIA AI Foundations, NVIDIA cuLitho software library, NVIDIA H100 Tensor Core GPU, NVIDIA AI Enterprise, GeForce RTX GPUs, DLSS 3, GeForce NOW, NVIDIA Omniverse Cloud, Omniverse, NVIDIA RTX GPUs, and NVIDIA DRIVE Orin; and the benefits and impact of our collaborations, including with Google Cloud, Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, ServiceNow, Medtronic, Dell Technologies, CD PROJEKT RED, Microsoft, and BYD are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.