2020 NVIDIA CORPORATION ANNUAL REVIEW NOTICE OF ANNUAL MEETING PROXY STATEMENT FORM 10-K “INNOVATIVE COMPANIES LIKE NVIDIA ARE AN AMERICAN TREASURE” THE STREET NVIDIA specializes in accelerated computing, solving important challenges beyond the reach of normal computers. We innovate at the intersection of computer graphics, high performance computing, and AI. At our core we are a real-time simulation company—simulating worlds, physics, and intelligence. JENSEN HUANG CEO and Founder, NVIDIA “KICKING DOWN BARRIERS, NVIDIA HAS AWOKEN THE INDUSTRY TO RAY TRACING” JOHN PEDDIE RESEARCH GeForce RTX has redefined what’s possible in gaming. Real-time ray tracing and neural graphics processing come together to create eye-popping images and deliver a level of photorealism never before seen in PC gaming. RTX is bringing a new visual dimension to AAA games like Call of Duty: Modern Warfare, Control, and Watch Dogs: Legion. RTX Studio laptops and workstations deliver this performance to digital creators, speeding applications for video editing, 3D animation, and graphic design. More than 60 models are available today from PC makers like Dell, HP, and Lenovo. For professionals, Turing-based Quadro RTX delivers photoreal graphics that the industry didn’t expect for another 5–10 years. Quadro RTX GPUs can now accelerate photoreal rendering for large industries that previously only used CPU server farms: film, animation, architecture, product design, and others. NVIDIA has reinvented computer graphics, again. “THE NEXT FRONTIER FOR REAL TIME COLLABORATION FOR 3D CONTENT CREATION” TWITTER TECHNEWS Large-scale 3D design in industries—from media and entertainment to architecture, engineering, and construction—is a giant collaboration and data sharing challenge. Experts from many companies work together across different design tools and file formats. NVIDIA Omniverse is a new collaboration platform to unite these project pipelines and let designers share assets seamlessly across creative applications. Now the work of many can be seen by all, in real time, in the splendor of NVIDIA RTX. “NVIDIA IS INVENTING THE FUTURE OF MACHINE LEARNING RIGHT IN FRONT OF OUR EYES” FORBES NVIDIA is the leading platform to accelerate AI and the world’s most demanding supercomputing applications. NVIDIA DGX systems are the world’s most powerful tools for AI training, uniting up to 16 GPUs to deliver petaflops of training performance. With the extreme I/O performance of Mellanox InfiniBand networking, DGX systems can quickly scale to supercomputer-class NVIDIA SuperPODs. In 2019, DGX-2 set world records on MLPerf, a new set of industry benchmarks designed to test deep learning performance. NVIDIA GPUs accelerate the U.S.-based Summit supercomputer, the world’s fastest, as well as the fastest systems in Europe and Japan. More than 130 supercomputers on the TOP500 list are powered by NVIDIA, including five of the top 10. “what about that one...” AI INFERENCE FOR HYPERSCALE Trained AI applications are deployed in large-scale, highly complex cloud data centers that serve voice, video, image, and recommendation services to billions of users. To be useful to our daily lives, they must work incredibly fast—a demand that is increasing exponentially with the rise of conversational AI. NVIDIA TensorRT software and NVIDIA GPUs converge to optimize, validate, and accelerate the world’s most demanding neural networks. “THE SMART EVERYTHING REVOLUTION IS NVIDIA AT ITS BEST” THE STREET AI is spilling out of the cloud and onto the edge, where oceans of raw data are generated by the world’s largest industries. On factory floors. In stores. On city streets. In urgent care facilities. These edge locations are equipped with billions of IoT sensors that stream terabytes of data. That information contains valuable insights that can drive decisions in real time. NVIDIA EGX is a state-of-the-art cloud-native platform that enables AI production to move beyond the data center and out to the edge. EGX delivers next-generation AI, IoT, and 5G-based services at large scale with low latency. Early adopters of EGX include Walmart, BMW, Procter & Gamble, Samsung Electronics, and the cities of Los Angeles and San Francisco. DEAR NVIDIANS Several hundred thousand gamers amassed the story—with revenue of $3.11 billion, up a 1.5 exaflops supercomputer. That is 41 percent from a year ago. AND STAKEHOLDERS, 1,500,000,000,000,000,000 operations per second! Five times the compute power of GPU revenue, which consists of GeForce As we prepare this annual report, the world Summit, the most powerful supercomputer gaming, Quadro workstation graphics, and is in an all-out war against COVID-19. Unlike in the world, and more than the world’s top Data Center platforms for HPC and AI, was anything we’ve confronted in generations, 100 supercomputers combined. $2.77 billion during the quarter, up 40 the COVID-19 pandemic is a medical as well percent from a year ago. Data Center as an economic crisis. Citizens all over the No war has ever united the world’s revenue was a record $968 million, up 43 world are sheltered in place. Store shelves scientists like this pandemic. We will get percent from a year ago. Tegra system-on- are empty. Restaurants are closed. Streets through this together. chip processor revenue, which includes are eerily quiet. And while we battle this automotive, custom gaming systems, and virus by staying at home, brave nurses, embedded edge AI platforms, was $331 Rising to the Challenge doctors, and first responders are on the million, up 47 percent from a year ago. front lines risking their safety and that of As we entered the year, our outstanding their families to protect us. Their courage is growth was stopped in its tracks by the Graphics. Accelerated Computing. AI. breathtaking, and we owe them our thanks simultaneous headwinds of a collapsing Data Centers. Self-Driving Cars. and support. cryptocurrency market, a pause in hyperscale spending, and a rapidly We are innovating at the epicenter of the At NVIDIA, we exercised an abundance of deteriorating trade environment with China. most important technology trends of our caution and closed our nearly 60 offices Despite being knocked back on our heels at time. We made significant advances in each around the world. Employees are working the outset, we finished the year strong. area last year. Believing in the importance of from home to help reduce the spread of the this work and staying focused despite the virus. Our extended family of direct hourly Full-year revenue was $10.9 billion, down setback drove our return to growth. Let me contractors is also sheltered in place and 7 percent. Gross margins expanded to 62 say a few words about each area. will continue to be paid. percent and GAAP earnings per share were $4.52, down 32 percent. We returned $390 We are deploying our most powerful million during the year to shareholders weapons to defeat COVID-19: our through quarterly cash dividends. The technology and our scientists. NVIDIA- growth trajectory of the fourth quarter tells powered supercomputers all over the world are being called into service to search for new drug compounds that can treat or “THE GROWTH TRAJECTORY OF THE FOURTH QUARTER TELLS THE STORY” vaccinate against the virus. NVIDIA’s team of computational scientists is joining these REVENUE GROSS MARGINS EPS researchers to speed their discovery. We’re +41% +1,020 bps +66% giving COVID-19 researchers free access to 64.9% our Parabricks genome-sequencing $3.5 65% 1.75 $3.11 $1.53 software. So far, 325 institutions, including $3.0 1.50 $2.5 1.25 hospitals, universities, and supercomputing $2.21 60% centers, have engaged. Meanwhile, we $2.0 1.00 $0.92 united gamers around the world to share the $1.5 0.75 54.7% in Billions 55% GPUs in their gaming rigs, assembling the $1.0 0.50 largest distributed supercomputer ever to $0.5 0.25 run Folding@Home. $0 50% 0 4Q19 4Q20 4Q19 4Q20 4Q19 4Q20 GAAP results NVIDIA Omniverse for architecture, engineering, and construction Reinventing Graphics NVIDIA RTX: Biggest Upgrade in the History NVIDIA RTX is democratizing film-quality of the GPU rendering for all creators and designers. Graphics is the force that fuels NVIDIA’s Photorealistic rendering is no longer solely massive R&D engine. NVIDIA invented The graphics industry—including game the realm of professional studios with large the GPU and introduced the world to developers, design tool makers, and film server farms. Forty creative and design programmable shading nearly 20 years studios—has overwhelmingly adopted applications are now RTX-accelerated, ago. Since then, we have dreamed about NVIDIA RTX. Leaders like Pixar, ILM, Sony, including Dimension, Substance Alchemist, creating the next big thing: real-time ray Weta Digital, Epic, Adobe, Autodesk, and Premiere Pro from Adobe, as well as tracing, which simulates the behavior of Dassault, EA, Activision Blizzard, Chaos Group’s V-Ray, Autodesk’s Arnold, light more accurately to create Microsoft, Ubisoft, and many more have and Blender’s Cycles. photorealistic images. added accelerated ray tracing. NVIDIA RTX is a home run. We have created the best And in partnership with leading PC makers After more than a decade’s work, reason to upgrade graphics since the Dell, HP, and Lenovo, we built a whole new we created the world’s first real-time invention of the GPU. line of NVIDIA RTX-powered consumer and ray-tracing GPU. It combines two new professional workstations and laptops to groundbreaking technologies: a ray-tracing We have the best lineup of GeForce run these new design and creative tools. accelerator and a deep learning Tensor desktop PC gaming GPUs in our history. More than 60 models of RTX Studio laptops Core processor.