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2016 Nvidia Corporation Annual Review

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2016 Nvidia Corporation Annual Review 2016 NVIDIA CORPORATION ANNUAL REVIEW NOTICE OF ANNUAL MEETING PROXY STATEMENT FORM 10-K A ONE-OF-A-KIND COMPANY NVIDIA is dedicated to creating products that are loved by the most demanding computer users in the world—gamers, designers, and scientists. We are the pioneers of GPU-accelerated computing. Our company is united by a core belief that excellence and mastery of our craft are the source of power that lets us tackle challenges that matter to the world. We aspire to build one of the world’s great companies, respected and admired for the amazing work we do and the impact we make. —Jen-Hsun Huang BARRON’S PC gaming is expanding. There are multiple drivers. The exploding popularity of eSports, a steady NVIDIA: GAMING stream of blockbuster titles, and the transformation of gaming into a EXPLOSION social, creative medium are bringing new energy and enthusiasm to an already massive market. VR is TRANSFORMING coming next. THEM, VR IS NEXT Our GeForce GTX platform is the heart and soul of PC gaming. More than 100 million gamers around the world play on GeForce. NVIDIA GameWorks technologies were integrated in 12 blockbuster titles in 2015. Our discrete GPU market share approached 80 percent, with the GeForce GTX 970 the most popular graphics card on Steam, the online gaming platform. IEM ESL Katowice eSports Tournament, 2016 SF CHRONICLE The future of TV will be apps and the future of gaming will be streaming. THE FUTURE NVIDIA SHIELD is our foothold in this future. With 4K streaming and advanced OF HOME gaming, it’s the best Android TV box on the market. And it will only get better with our regular software updates ENTERTAINMENT and a growing app catalog. GeForce NOW is our “Netflix for games.” The game-streaming service delivers an incredible GeForce GTX experience to SHIELD devices. With SHIELD, we’ve created an amazing platform that integrates everything from the processor architecture to the industrial design to the user interface. And we’re just getting started. SHIELD campaign skydiving stunt. Dissection in virtual reality. DNA NVIDIA PAVES THE WAY FOR VR. Virtual reality is sparking a revolution in the computing experience. It will transform gaming and ripple through product design, retail, sports, medicine, and many other industries. VR requires “If we had unlimited GPU horsepower in everybody’s computers that would make our lives much easier.” — Palmer Luckey, Founder, Oculus powerful GPUs, and our NVIDIA VRWorks software helps headset makers and game developers create amazing VR experiences. COMPUTER GRAPHICS WORLD NVIDIA ILLUSTRATES THE POWER OF PHYSICALLY BASED RENDERING. For designers who build the products people use every day—from cars to skyscrapers—it’s critical that what they see digitally mirrors reality. NVIDIA Iray—technologies for physically based rendering of lighting and materials—is integrated into leading design applications, including Dassault Systèmes Catia, SOLIDWORKS Visualize, Autodesk 3DS Max and Maya, as well as McNeel Rhino and Maxon Cinema 4D. As we advance the state of the art of design, we’re also extending it to more people. With NVIDIA GRID, enterprise workers can access any app on any device anywhere. More than 500 companies, including 11 of the Fortune 100, have deployed it. At VMworld 2015, we demonstrated GRID’s capabilities—7.4 billion pixels worth of virtualized desktops filled our “Tower of Power” demo. Gensler, one of the world’s leading architecture firms, is using Iray technologies in the design of our new headquarters. POPULAR SCIENCE THE GPU IS THE WORKHORSE OF MODERN AI Since the dawn of the computer age, college post-graduate level. Then artificial intelligence has been the final Baidu announced that a deep learning frontier. Building intelligent machines system called Deep Speech 2 had that can perceive the world as we do, learned both English and Mandarin understand our language, and learn with a single algorithm. from examples has been the life’s work of computer scientists for In just two years, the number of over five decades. companies NVIDIA collaborates with on deep learning has jumped nearly Recently, the combination of deep 35x to over 3,400. Industries such as neural networks, big data, and powerful healthcare, life sciences, energy, GPU platforms has dramatically financial services, automotive, accelerated the advance of AI. In manufacturing, and entertainment 2015, GPU-accelerated deep learning will all benefit by inferring insight from systems achieved superhuman levels mountains of data. And with Facebook, of perception for the first time. Google, and Microsoft opening their deep-learning platforms for all to use, Using deep learning, Google and AI-powered applications will spread fast. Microsoft both beat the best human score in the ImageNet challenge. Deep-learning breakthroughs have Shortly thereafter, Microsoft and sparked the AI revolution. Progress the China University of Science and is exponential. Adoption is exponential. Technology announced a network The impact to the tech industry and that achieved IQ test scores at the society will also be exponential. EVERY INDUSTRY WANTS INTELLIGENCE Organizations engaged with NVIDIA on deep learning Higher Education Manufacturing Internet Defense Life Sciences Automotive Development Tools Gaming Finance Oil & Gas Media & Entertainment Other Government 3409 1549 100 2013 2014 2015 WALL STREET JOURNAL NVIDIA STEPS ON THE GAS Accelerated computing and AI will make DRIVE PX 2 to power a fleet of 100 Volvo networks; and DriveNet, our reference future cars safer and more delightful to XC90 SUVs starting next year in its Drive deep neural network. Global automakers drive. Driverless shuttles will change Me autonomous-car pilot program. such as Audi, BMW, Daimler, and Ford; how we think about transportation. With Japanese robot taxi developer ZMP; the horsepower of 150 MacBook Pros, The DRIVE PX platform is loaded with and Toyota-partner Preferred Networks the lunchbox-sized NVIDIA DRIVE PX 2 software, including DriveWorks, for are using NVIDIA DRIVE to develop is a supercomputer for the car that will developing applications across the entire autonomous cars. In all, more than 70 usher in this transformation. Volvo, a self-driving pipeline; NVIDIA DIGITS, companies and institutions are working brand synonymous with safety, chose for training and visualizing deep neural with the DRIVE PX platform. ENGADGET NVIDIA’S ‘MOBILE SUPERCOMPUTER’ CAN MAKE MACHINES SMARTER. We’re also bringing AI and deep learning to the world of robots and drones. NVIDIA Jetson TX1, the first embedded computer designed to process deep neural networks, delivers an astounding 1 teraflops of performance in a credit card-sized module. Such power will enable autonomous machines to learn on their own. Walking, obstacle-avoiding robot developed by General Electric. DEAR NVIDIANS AND STAKEHOLDERS, A ONE-OF-A-KIND COMPANY —AN EXTRAORDINARY YEAR NVIDIA is dedicated to creating products that are loved by the most demanding computer users in the world—gamers, designers, and scientists. Our company is united by a core belief that excellence and mastery of our craft is the source of power that lets us tackle challenges that matter to the world. We aspire to build one of the world’s great companies, respected and admired for the amazing work we do and the impact we make. NVIDIA is the pioneer of GPU-accelerated computing. Our strategy is to leverage our deep expertise and significant scale to serve markets where our specialty is greatly valued. The problems we tackle require a tight integration of processor, software, algorithms, system architecture, and deep domain expertise. We have chosen to serve several important and sustainable markets—Gaming, Professional Visualization, Data Center, and Automotive. CAPITAL MARKET LABORATORIES THE CROWN JEWEL $5.01B 5 6.1% OF TECHNOLOGY JUST RECORD REVENUE RECORD GROSS MARGINS CRUSHED ITS EARNINGS. The success of our strategy is clear in a new computing model and our specialty We exited the mobile market this our financial results. Revenue was up of GPU-accelerated computing has year and stopped building modems. 7 percent to reach a record $5.01 billion quickly become the standard. Every We were one of the first entrants to and gross margins expanded by 60 basis deep learning framework—including mobile computing. We saw the mobile points to a record 56.1 percent. Facebook’s Torch, Google’s TensorFlow, device becoming our most personal IBM’s Watson, and Microsoft’s CNTK— computers—always connected, and Our strategy has propelled us to strong runs on our GPU platform. We’re working eventually replacing music players, positions in our focused markets: with more than 3,400 companies across GPS devices, cameras, readers, portable industries. And we’re engaged in deep game consoles, and even some PCs. NVIDIA GeForce is the #1 PC gaming learning in every function and at every Our vision was right, but the mobile platform: NVIDIA Maxwell, our level of our company. business is not for us. NVIDIA is not breakthrough GPU architecture, gives us in the commodity chip business that a powerful foundation on which to build. NVIDIA DRIVE PX takes the pole position the smartphone market has become. GeForce Experience, an application that in the race to self-driving cars: A very We are in the specialized-computing optimizes games, now boasts 77 million promising application of GPU-powered business, where computing challenges users. And GeForce GTX graphics cards deep learning, the self-driving car is are near infinite and our deep expertise continued to gain share. Revenue in our the most important development in advances the field. gaming market grew by a remarkable transportation in our lifetime. More 37 percent this year to hit $2.8 billion. than 70 companies are working with Our mobile experience was far from DRIVE PX—our scalable, programmable a bust. The future of computing is NVIDIA Quadro is the #1 design platform is off to a great start.
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