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Nvidia Corporation NVIDIA CORPORATION / / 2011 A 2011 NVIDIA CORPORATION 2011 AnnUAL REviEW, nn NoticE OF AnnUAL MEEting, U A L RE L ProxY StatEMEnt and ForM 10-K vi EW FroM SUPER PHONES to SUPErcoMPUTErs, NVIDIA poWErs THE WorLD’S Most inspiring DEvicES. Since awakening the industry in 1999 to the power of computer graphics with the invention of the GPU, NVIDIA has consistently set new standards in visual computing. This expertise, initially focused on computer gaming, has led to breakthroughs in parallel processing for high-performance computing. While our demanding customers are as diverse as video-hungry teenagers, style-setting designers and prize-winning scientists, we serve them all with a singular passion—for excellent performance, rigorous power efficiency and continual innovation. “The Last Airbender” image courtesy of Industrial Light & Magic. © 2010 Paramount Pictures Corporation. All Rights Reserved. NVIDIA CORPORATION 2011 ANNUAL REVIEW 01 GEFORCE IGNITES PC GAMING. MORE THAN ONE BILLION GEFORCE GPU’S HAVE BEEN SOLD OVER THE PAST 12 YEARS. The devotion the brand stirs goes beyond customer loyalty. Fans have had the GeForce logo tattooed on their arm and shaved in their hair. The vivid graphics and seamless video fueled by NVIDIA® GeForce® technology delivers exceptional visual experiences for those looking to play state-of-the-art PC games, edit video and stream high-definition movies. Among the many market-leading innovations enabled by GeForce technology are: the NVIDIA PhysX® engine, which allows game developers to create virtual worlds that mirror dynamics of the real world; NVIDIA 3D Vision™ technology, which provides an immersive 3D experience on PCs by using specially designed active-shutter glasses; and NVIDIA Optimus™, an innovative laptop technology that extends battery life without compromising graphics performance. Epic Games’ Unreal Engine 3, the world’s most popular gaming engine, was built to support such leading NVIDIA technologies as DX11 tessellation, PhysX and 3D Vision. 02 GEFORCE NVIDIA CORPORATION 2011 ANNUAL REVIEW 03 Verizon Motorola XOOM tablet T E G RA AT&T Motorola Atrix 4G super phone with Lapdock 04 TEGRA IS REVOLUTIONIZING MOBILE COMpuTING AND POWERING A NEW WAVE OF SupER PHONES AND TABLETS. A thumbnail-sized chip with eight specialized processors, NVIDIA Tegra™ fuels the new generation of super phones, tablets, as well as in-car safety and infotainment systems. Tegra incorporates the world’s first mobile dual-core CPU, with up to two-times faster Web browsing support for full Adobe Flash, plus unprecedented multitasking capabilities. It is also equipped with a GeForce GPU, which provides stunningly rich visual experiences and console-quality gaming. Among the first super phones to utilize the Tegra processor are the Motorola Atrix 4G and the LG Optimus 2X. The chip also powers many tablets running on the new Android 3.0, or Honeycomb, operating system, such as the Motorola XOOM, LG Optimus Pad and Samsung Galaxy Tab 10.1. Vodaphone Samsung Galaxy Tab 10.1 tablet T-Mobile G2X with Google by LG NVIDIA CORPORATION 2011 ANNUAL REVIEW 05 QUADRO IS THE INDUSTRY STANDARD FOR ENgiNEERING, DESIGN, MEDICAL IMAGING AND fiLM PRODUCTION. Animators, broadcasters, visual-effects artists and industrial designers overwhelmingly use NVIDIA Quadro® processors to create and visualize complex projects. Products ranging from such massive undertakings as skyscrapers and airplanes to everyday items like tennis shoes and plastic bottles take shape on Quadro-powered software. NVIDIA Fermi-class processors leverage the CUDA® parallel-computing architecture to enhance workstations, delivering both advanced visualization and high-performance simulation capabilities. This unique processor gives automotive designers the ability to view their creations photorealistically, as well as to model airflow around the vehicle; and it provides engineers with the ability to analyze and visualize data critical to guiding oil & gas exploration. “Iron Man 2” image courtesy of Double Negative Visual Effects. © Marvel and Paramount. 06 Quadro accelerates visualization across a wide range of professional fields, facilitating new insights and enabling work to be done faster and with greater precision. Q U ADRO NVIDIA CORPORATION 2011 ANNUAL REVIEW 07 Tesla processors power the world’s fastest supercomputer, China’s Tianhe-1A, used for large-scale scientifi c computation. Supercomputing has broad applications in such fi elds as drug design and seismic imaging, as depicted in the inset pictures. TESLA 08 TESLA IS AT THE FOREFRONT OF SupERCOMpuTING, COMBINING TOP PERFORMANCE WITH ENERGY EffiCIENCY. NVIDIA Tesla™ processors enable scientists to address the most challenging problems in science—in such fields as climate modeling, space exploration, medical imaging and computational biology. Tesla solutions power the world’s fastest supercomputer, China’s Tianhe-1A, a 2.5 petaflop system that uses more than 7,000 Tesla GPUs and is three times more power efficient than a CPU-only system. Tesla GPUs are also behind two other systems that are among the world’s five fastest supercomputers. Their massively parallel architecture divides complex computing problems into thousands of smaller tasks and processes them simultaneously, leading to performance increases of 10 to 100 times. This enables computing problems to be solved in minutes instead of hours, dramatically outpacing traditional computing with CPUs alone. NVIDIA CORPORATION 2011 ANNUAL REVIEW 09 DEAR FELLOW STAKEHOLDERS, This was one of the most important years in NVIDIA’s history. While extending our leadership in computer graphics, we expanded our reach and began realizing our vision to help revolutionize the computer industry. Foreseeing the importance of energy efficiency, In many respects, the fourth quarter marked the we set out half a decade ago to build high-end beginning of a new NVIDIA. Our coming-out party parallel and mobile processors. These ground- was this year’s International Consumer Electronics breaking initiatives sought to address two of our Show, where major news was announced: fundamental convictions: that power will limit the OEMs announced a range of super phones number of computers in large data centers, and incorporating the NVIDIA Tegra 2 mobile super that energy efficiency will define our experience chip, making it the show’s runaway hit. with mobile devices. We unveiled Project Denver, a secret NVIDIA-built These beliefs turned out to be well placed. And, custom CPU based on ultra energy-efficient ARM with both products on the market, we began to architecture. achieve major wins. Microsoft underscored Project Denver’s importance, disclosing that the next generation Results in the fourth quarter provided a glimpse of Windows will, for the first time, run on ARM of their potential. Net profit more than doubled architecture. to $172 million from the previous quarter, and gross margin hit a record 48.1 percent. For the full And less than a week later, NVIDIA entered into a year, net profit totaled $253 million, from 2010’s significant cross-licensing agreement with Intel. $68 million loss, as revenue rose 6.5 percent to This provides us with access to all of Intel’s $3.54 billion. technologies to build our own processors, as well as $1.5 billion in licensing payments over six years. TESLA GPU TEGRA SYSTEm-on-A-CHIP 1 billion transistors 241 million transistors 512 processors 8 processors NVIDIA is the only company in the world that makes highly energy-efficient processors which both fit in your pocket and power your datacenter. The Tesla GPU is designed for high-performance computing, and the Tegra chip is used in mobile devices. 10 A NEW COMputING REVOLutION After a 30-year run with the PC at the center of innovation, the computer industry is being rocked by dramatic changes. In this new world, PCs will remain the main platform for creative expression. But the devices Jen-Hsun Huang – Co-founder, President and Chief Executive Officer most central to our lives will be super phones and tablets. They will be our most personal computers. This and so much more will be possible. But Just as the PC revolution once transformed the delivering on the full promise of mobile computing computer industry, the mobile computing revolu- will require a new class of processor—one that tion will have equally far-reaching impact. provides supercomputing capabilities yet sips tiny amounts of power. Consider….These handheld computers are created by phone companies, not traditional OEMs. We buy We believe the most energy-efficient architecture them from carriers—not just retailers. We use them for this challenge is a GPU. It works in parallel, to enjoy books, games, music, and apps downloaded breaking down a large challenge into small tasks from a digital store—not shrink-wrapped software. that can be handled simultaneously by hundreds And their architecture is based on processors like of tiny processors. Tegra, which are entire computers on a thumbnail- size chip incorporating ARM CPUs, not x86-com- A CuLtuRE OF REINVENTION patible CPUs. Realizing the potential of mobile computing plays to NVIDIA’s strengths. And we have demonstrated Nearly everything about these devices is different, our adaptability to seize new opportunities by including the way we will use them. repeatedly reinventing ourselves. In the future, you’ll be able to hold up your phone to Back in 1993, we launched our three-man startup a Chinese menu and see it instantly translated into to revolutionize PC graphics, believing that the a chosen language. You may be able to use it to PC would become a consumer device for enjoying take your pulse, gauge your blood pressure, and games and multimedia. This, in time, became a perhaps even measure blood-sugar levels. massive industry, leading us to $1 billion in revenue faster than any semiconductor company in history. You’ll be able to use your tablet’s video camera to view your living room. Magically, a computer- In the early 2000s, we invented the programmable generated 3D image of the coffee table you are graphics processor, giving software developers thinking about buying will appear in the room.
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