10-KPeriod: FY2024

NVIDIA CORP Annual Report, Year Ended Jan 28, 2024

Filed February 21, 2024For Securities:NVDA

Summary

NVIDIA Corporation (NVDA) delivered an exceptional fiscal year 2024, marked by a staggering 126% increase in revenue to $60.9 billion, primarily driven by a 217% surge in its Data Center segment. This growth is largely attributed to the insatiable demand for AI infrastructure, particularly for training and inference of large language models (LLMs) and generative AI applications. The company's full-stack computing platform, encompassing GPUs, networking, and software, has solidified its dominant position in the AI revolution. While the Data Center segment is the clear growth engine, the Graphics segment also demonstrated resilience, growing 15%. The company continues to invest heavily in research and development to maintain its technological leadership across all its markets, including Gaming, Professional Visualization, and Automotive. Despite facing geopolitical and supply chain complexities, including U.S. export controls impacting sales to China, NVIDIA has demonstrated robust demand and a strong ability to navigate these challenges. The company's substantial cash generation and ongoing share repurchase program further underscore its financial strength and commitment to shareholder returns.

Financial Highlights

56 data points
Beta

Revenue

$60.92B

72.7% Gross Margin

Net Income

$29.76B

48.8% Net Margin

EPS (Diluted)

$1.19

Total Assets

$65.73B

Cash & Equivalents

$7.28B

Free Cash Flow

$28.09B

Financial Statements
Beta
Revenue$60.92B
Cost of Revenue$16.62B
Gross Profit$44.30B
R&D Expenses$8.68B
SG&A Expenses$2.65B
Operating Expenses$11.33B
Operating Income$32.97B
Interest Expense$257.00M
Net Income$29.76B
EPS (Basic)$1.21
EPS (Diluted)$1.19
Shares Outstanding (Basic)24.69B
Shares Outstanding (Diluted)24.94B

Key Highlights

  • 1Exceptional revenue growth of 126% year-over-year, reaching $60.9 billion for fiscal year 2024.
  • 2Data Center segment revenue surged by 217% year-over-year, reaching $47.5 billion, primarily fueled by AI demand.
  • 3Gross margin improved significantly to 72.7% from 56.9% in the prior year, driven by strong Data Center performance and lower inventory provisions.
  • 4Net income saw an impressive 581% increase, reaching $29.76 billion, with diluted EPS growing 586% to $11.93.
  • 5The company repurchased $9.7 billion of its common stock in fiscal year 2024 under an expanded share repurchase program, signaling strong confidence and commitment to shareholder returns.
  • 6NVIDIA is actively managing supply chain complexities and U.S. export control regulations, particularly concerning China, while expanding its product portfolio to offer licensed alternatives.
  • 7Significant ongoing investment in R&D, with over half of engineers focused on software, highlighting a commitment to innovation in AI and accelerated computing.

Frequently Asked Questions

The primary driver of NVIDIA's significant revenue growth in fiscal year 2024 was the exceptional performance of its Data Center segment, which saw a 217% increase year-over-year. This surge was fueled by robust demand for AI infrastructure, including GPUs and related platforms, essential for training and inference of large language models and generative AI applications.

NVIDIA is actively navigating U.S. export control regulations by seeking necessary licenses for restricted product sales. The company is also expanding its Data Center product portfolio to offer new solutions that do not require licenses or advance notice for shipments. While these regulations have impacted sales to China, NVIDIA has started to ship alternative products in small volumes and is working to mitigate the effects by diversifying its supply chain and potentially developing new products that comply with current and future export control requirements.

NVIDIA is committed to returning capital to shareholders through a combination of share repurchases and cash dividends. In fiscal year 2024, the company repurchased $9.7 billion of its common stock under an expanded $25 billion share repurchase program. Additionally, NVIDIA paid $395 million in quarterly cash dividends. These actions reflect the company's strong financial position and its focus on enhancing shareholder value.

NVIDIA continues to make substantial investments in research and development, with over half of its engineers dedicated to software development. This strategic focus ensures the company remains at the forefront of AI and accelerated computing innovation. NVIDIA is expanding its full-stack platform, including its CUDA programming model, software libraries, and domain-specific SDKs, to address evolving customer needs across various industries and maintain its competitive edge.