10-KPeriod: FY2025

NVIDIA CORP Annual Report, Year Ended Jan 26, 2025

Filed February 26, 2025For Securities:NVDA

Summary

NVIDIA Corporation reported exceptional financial results for the fiscal year ended January 26, 2025, showcasing a substantial 114% year-over-year revenue increase, reaching $130.5 billion. This remarkable growth was predominantly fueled by a surge in demand for its Data Center solutions, which saw a 145% increase, driven by the adoption of its Hopper architecture for AI workloads like large language models and generative AI. The company also initiated shipments of its new Blackwell architecture in the fourth quarter, signaling continued innovation and future growth potential in the AI infrastructure space. Despite a 45% increase in operating expenses, largely attributed to investments in research and development and increased headcount, NVIDIA maintained strong profitability, with operating income growing by 147% and net income by 145% year-over-year. The company's strategic focus on its full-stack computing platform, encompassing hardware, software, and networking, continues to solidify its market leadership, though it remains subject to evolving geopolitical and regulatory environments, particularly concerning export controls.

Financial Highlights

55 data points
Beta

Revenue

$130.50B

75.0% Gross Margin

Net Income

$72.88B

55.8% Net Margin

EPS (Diluted)

$2.94

Total Assets

$111.60B

Cash & Equivalents

$8.59B

Free Cash Flow

$64.09B

Financial Statements
Beta
Revenue$130.50B
Cost of Revenue$32.64B
Gross Profit$97.86B
R&D Expenses$12.91B
SG&A Expenses$3.49B
Operating Expenses$16.41B
Operating Income$81.45B
Net Income$72.88B
EPS (Basic)$2.97
EPS (Diluted)$2.94
Shares Outstanding (Basic)24.55B
Shares Outstanding (Diluted)24.80B

Key Highlights

  • 1Revenue surged by an impressive 114% to $130.5 billion for the fiscal year ended January 26, 2025.
  • 2Data Center revenue experienced a significant 145% increase, reaching $116.2 billion, driven by high demand for AI and accelerated computing platforms.
  • 3Gross margin improved to 75.0% from 72.7% in the prior year, primarily due to a higher mix of Data Center revenue.
  • 4Operating income grew by 147% to $81.5 billion, while net income saw a 145% increase to $72.9 billion, demonstrating robust profitability.
  • 5NVIDIA began shipping its new Blackwell architecture in Q4 FY2025, indicating continued technological advancement.
  • 6The company repurchased $34.0 billion of its common stock in fiscal year 2025, underscoring its commitment to returning capital to shareholders.
  • 7Export control regulations, particularly those impacting sales to China and other regions, remain a significant factor affecting business operations and market access.

Frequently Asked Questions

NVIDIA's revenue drivers in fiscal year 2025 were overwhelmingly its Data Center solutions, which saw a 145% year-over-year increase, driven by the high demand for its accelerated computing and AI platforms, particularly the Hopper architecture. Gaming revenue also saw growth, up 9%, and Professional Visualization revenue increased by 21%, while Automotive revenue grew by 55%.

The report indicates that export control regulations, especially those imposed by the U.S. government, have impacted NVIDIA's ability to serve certain markets, particularly China. While the company has developed specific products for China that do not require export licenses and has seen Data Center revenue grow in China, this segment remains below pre-control levels and highly competitive. The company anticipates that further changes in export controls could continue to harm its competitive position and future results.

NVIDIA's strategy centers on advancing its accelerated computing platform, extending its technology and platform leadership in AI through its full-stack offerings (hardware, software, networking), and developing the leading autonomous vehicle platform. The introduction of the Blackwell architecture and continued investment in research and development are key components of this strategy, aiming to meet evolving market demands and deliver next-generation computing solutions.

NVIDIA operates a fabless manufacturing strategy, relying on third-party suppliers for wafer fabrication, assembly, testing, and packaging. The company has expanded its supplier relationships and entered into long-term supply and capacity agreements, including prepaid arrangements, to support demand projections. However, this reliance on third parties and the complexity of managing multiple suppliers, along with long manufacturing lead times, create ongoing challenges and risks related to supply and demand mismatches, as highlighted by inventory provisions for low-yielding Blackwell material.