2017 NVIDIA CORPORATION ANNUAL REVIEW NOTICE OF ANNUAL MEETING PROXY STATEMENT FORM 10-K THE AGE OF THE GPU IS UPON US THE NEXT PLATFORM A decade ago, we set out to transform the GPU into a powerful computing platform—a specialized tool for the da Vincis and Einsteins of our time. GPU computing has since opened a floodgate of innovation. From gaming and VR to AI and self-driving cars, we’re at the center of the most promising trends in our lifetime. The world has taken notice. Jensen Huang CEO and Founder, NVIDIA NVIDIA GEFORCE HAS MOVED FROM GRAPHICS CARD TO GAMING PLATFORM FORBES The PC drives the growth of computer gaming, the largest entertainment industry in the world. The mass popularity of eSports, the evolution of gaming into a social medium, and the advance of new technologies like 4K, HDR, and VR will fuel its further growth. Today, 200 million gamers play on GeForce, the world’s largest gaming platform. Our breakthrough NVIDIA Pascal architecture delighted gamers, and we built on its foundation with new capabilities, like NVIDIA Ansel, the most advanced in-game photography system ever built. To serve the 1 billion new or infrequent gamers whose PCs are not ready for today’s games, we brought the GeForce NOW game streaming service to Macs and PCs. Mass Effect: Andromeda. Courtesy of Electronic Arts. THE BEST ANDROID TV DEVICE JUST GOT BETTER ENGADGET NVIDIA SHIELD TV, controller, and remote. NVIDIA SHIELD is taking NVIDIA gaming and AI into living rooms around the world. The most advanced streamer now boasts 1,000 games, has the largest open catalog of media in 4K, and can serve as the brain of the AI home. NVIDIA SPOT, an AI mic accessory, extends SHIELD’s intelligent control throughout the house. NVIDIA SHIELD SPOT. 10:00 AM 6:00 PM NVIDIA’S FIRST-EVER GAME A BLAST TO PLAY IN VR USA TODAY NVIDIA TAKES VIRTUAL REALITY ONE STEP CLOSER TO THE HOLODECK WITH IRAY VR TECHRADAR NVIDIA has led the field of visual computing since our invention of the GPU in 1999. VR is the next frontier. NVIDIA GPUs are the engines that power this new medium and we’re making VR even more immersive with technologies like NVIDIA Iray that bring the physical properties of light and materials into virtual worlds. Iray VR was used in the design of NVIDIA’s new headquarters (pictured here). 9:00 PM VR Funhouse, an NVIDIA game that brings advanced graphics, haptics, and realistic physics to VR, has been downloaded 200,000 times. NVIDIA’S INSANE DGX-1 IS A COMPUTER TAILOR-MADE FOR DEEP LEARNING ENGADGET NVIDIA IS NOT JUST ACCELERATING AI, IT AIMS TO RESHAPE COMPUTING FORBES A new era of computing is upon us. app. More than 2,000 AI startups have cropped up around the world. Healthcare Artificial intelligence amplifies our organizations, from the 165-year- cognitive abilities—letting us solve old Mount Sinai Hospital to startups problems where the complexity is too like PathAI, are using AI to advance great, the information is incomplete, everything from drug discovery to or the details are too subtle and require cancer diagnosis. FANUC, the Japanese expert training. Learning from data— industrial robotics giant, is building a computer’s version of life experience— the factory of the future on the NVIDIA is how AI evolves. AI platform. Hikvision, the world leader in surveillance systems, is using AI to GPU deep learning is a new computing help make cities safer. model in which deep neural networks are trained to recognize patterns from And we’re working with the world’s massive amounts of data. largest enterprise technology providers so every company can tap into the power Every industry has awoken to AI. The of GPU deep learning. world’s leading internet companies are racing to infuse intelligence into every NVIDIA DGX-1, an AI supercomputer in a box, delivers the computing power of a 250-node HPC cluster, reducing deep neural network training time from weeks to days. NVIDIA’S SELF-DRIVING CARS WILL HELP YOU DRIVE BETTER, TOO THE VERGE THIS IS THE FUTURE OF DRIVING ARS TECHNICA Autonomous vehicles will modernize the $10 trillion transportation industry, but they require an enormous amount of computing power. NVIDIA DRIVE PX 2 is a scalable AI car supercomputer that spans the entire range of autonomous driving. Using PX 2, BB8, our research AI car (pictured here), has learned to drive in all kinds of conditions—on highways and windy roads, through obstacle courses, at night, and in the rain. Every Tesla Motors vehicle now comes equipped with DRIVE PX 2 for full self-driving capabilities, and Audi will achieve Level 4 autonomous driving in cars powered by DRIVE PX starting in 2020. With our AI Co-Pilot capabilities, even when the car’s not driving for you, it can be watching out for you—alerting you to dangerous situations on the road, knowing where you’re looking, and reading your lips to understand your commands in noisy situations. DEAR NVIDIANS AND STAKEHOLDERS, GPU COMPUTING HAS ARRIVED. The tool that we built for the da Vincis and Einsteins of our time is the force behind today’s most promising trends, from gaming and VR to AI and self-driving cars. We leverage our powerful platform by focusing on the hardest problems that only we can solve. They require deep technical integration, from processor to software to systems to domain expertise. They are worth the efforts of our talented, dedicated employees. And they matter to the world. OUR COMPANY IS UNIQUE IN ITS EVOLUTION AND MARKET POSITION. OUR STRATEGY IS FIRING ON ALL CYLINDERS. Revenue was up 38% to reach a record AI fueled the rapid growth of our Transformed from chips to platforms $6.9 billion and gross margins expanded datacenter business, which tripled year and products. Along with our moves 270 basis points to hit 58.8 percent. GAAP over year in the fourth quarter, bringing to build platforms for select vertical earnings per share were $2.57, up 138 total annual revenue to $830 million. We markets, we’ve also evolved from percent. And we returned $1 billion to have a multi-year lead in AI computing. building chips to building systems. shareholders through dividends and We’ve built an end-to-end platform that NVIDIA SHIELD is one example of stock repurchases. starts with a GPU optimized for AI. Our this transformation. SHIELD is a tiny single architecture spans computers of supercomputer for the home. It brings Our gaming business grew 44% this year every shape and size—PCs, servers, IoT NVIDIA’s famed gaming capabilities to a record $4.1 billion. The breakthrough devices—and is available from every to the living room, serves up 4K HDR Pascal architecture solidified our market cloud service provider—Alibaba, Amazon, movies, and is the AI computer that will leadership. And we expanded our Google, IBM, Microsoft. GPU deep one day let you talk to and control your platform with solutions to ride the learning is the most advanced, most home. The DGX-1 AI supercomputer, massive waves of blockbuster games, accessible platform for AI. our main thrust to bring AI to every eSports, and social media. enterprise, is another example of our Adoption of DRIVE PX 2 spurred our systems approach. We continued to lead visual computing, multi-year lead in AI car computing. seeing double digit growth in our Our AI car platform spans the range of Today, NVIDIA is capable of innovating professional visualization business autonomous vehicles, from auto-piloted across the entire computing stack— and advancing the field with our latest cars to driverless shuttles, from training from the most advanced GPUs to Iray and VR technologies. to cloud mapping to in-car AI capabilities. innovative systems, from graphics to AI, Some of the world’s most innovative from device to cloud—to serve the most automakers, the world’s largest auto exciting growth industries of our time. suppliers, and the leading mapping companies have adopted DRIVE PX. REVENUE GROSS MARGINS OPERATING MARGINS EPS +38% +270 bps +1,310 bps +138% $8 B 60% 30% 28.0% $3.00 $6.9 B $2.57 59% 58.8% $6 B 20% $2.00 58% $4 B 57% 10% $1.00 $2 B 56% $ 0 55% 0% $0.00 FY '16 FY '17 FY '16 FY '17 FY '16 FY '17 FY '16 FY '17 GIVING BACK TO OUR COMMUNITIES SHAPING THE FUTURE NVIDIANs are passionate about giving This includes $200,000 grants this year NVIDIA is a learning machine. For back to their communities, with a long to the Translational Genomics Research over two decades, we’ve continuously history of volunteerism and strong Institute for research to discover reinvented ourselves. Our work today support for fighting cancer and improving individualized therapeutic vulnerability is shaping the industries and society education. Our philanthropic giving this in cancer, and to a team at the University of tomorrow. year exceeded $5 million. of North Texas that aims to discover new cancer biomarkers to improve Our company regularly receives top diagnosis and treatment. marks on prominent lists of the most socially and environmentally responsible With Project Inspire, our employees and companies, including debuting at No. 20 their families come together each year on the 100 Best Corporate Citizens to enhance their local communities. In list in 2016. Santa Clara, we celebrated our 10th annual and largest yet event, which Our employee-run NVIDIA Foundation brought together 1,650 of us to transform sets the priorities for our philanthropic a local high school in an underserved The computing model that we pioneered efforts.