Item 1. Financial Statements (Unaudited)

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(In millions, except per share data)

(Unaudited)

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
Revenue			$	26,044					$	7,192
Cost of revenue			5,638						2,544
Gross profit			20,406						4,648
Operating expenses
Research and development			2,720						1,875
Sales, general and administrative			777						633
Total operating expenses			3,497						2,508
Operating income			16,909						2,140
Interest income			359						150
Interest expense			(64)						(66)
Other, net			75						(15)
Other income (expense), net			370						69
Income before income tax			17,279						2,209
Income tax expense			2,398						166
Net income			$	14,881					$	2,043
Net income per share:
Basic			$	6.04					$	0.83
Diluted			$	5.98					$	0.82
Weighted average shares used in per share computation:
Basic			2,462						2,470
Diluted			2,489						2,490

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(In millions)

(Unaudited)

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
Net income			$	14,881					$	2,043
Other comprehensive loss, net of tax
Available-for-sale securities:
Net change in unrealized gain (loss)			(128)						17
Cash flow hedges:
Net change in unrealized loss			(4)						(13)
Reclassification adjustments for net realized loss included in net income			(4)						(11)
Net change in unrealized loss			(8)						(24)
Other comprehensive loss, net of tax			(136)						(7)
Total comprehensive income			$	14,745					$	2,036

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

			Apr 28, 2024						Jan 28, 2024
Assets
Current assets:
Cash and cash equivalents			$	7,587					$	7,280
Marketable securities			23,851						18,704
Accounts receivable, net			12,365						9,999
Inventories			5,864						5,282
Prepaid expenses and other current assets			4,062						3,080
Total current assets			53,729						44,345
Property and equipment, net			4,006						3,914
Operating lease assets			1,532						1,346
Goodwill			4,453						4,430
Intangible assets, net			986						1,112
Deferred income tax assets			7,798						6,081
Other assets			4,568						4,500
Total assets			$	77,072					$	65,728
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable			$	2,715					$	2,699
Accrued and other current liabilities			11,258						6,682
Short-term debt			1,250						1,250
Total current liabilities			15,223						10,631
Long-term debt			8,460						8,459
Long-term operating lease liabilities			1,281						1,119
Other long-term liabilities			2,966						2,541
Total liabilities			27,930						22,750
Commitments and contingencies - see Note 12
Shareholders’ equity:
Preferred stock			—						—
Common stock			2						2
Additional paid-in capital			12,651						13,132
Accumulated other comprehensive income (loss)			(109)						27
Retained earnings			36,598						29,817
Total shareholders' equity			49,142						42,978
Total liabilities and shareholders' equity			$	77,072					$	65,728

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders' Equity

For the Three Months Ended April 28, 2024 and April 30, 2023

(Unaudited)

			Common Stock Outstanding												Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Retained Earnings						Total Shareholders' Equity
			Shares						Amount
(In millions, except per share data)
Balances, Jan 28, 2024			2,464						$	2					$	13,132					$	27					$	29,817					$	42,978
Net income			—						—						—						—						14,881						14,881
Other comprehensive loss			—						—						—						(136)						—						(136)
Issuance of common stock from stock plans			7						—						285						—						—						285
Tax withholding related to vesting of restricted stock units			(2)						—						(1,752)						—						—						(1,752)
Shares repurchased			(10)						—						(33)						—						(8,002)						(8,035)
Cash dividends declared and paid ($0.04 per common share)			—						—						—						—						(98)						(98)
Stock-based compensation			—						—						1,019						—						—						1,019
Balances, Apr 28, 2024			2,459						$	2					$	12,651					$	(109)					$	36,598					$	49,142
Balances, Jan 29, 2023			2,466						$	2					$	11,971					$	(43)					$	10,171					$	22,101
Net income			—						—						—						—						2,043						2,043
Other comprehensive loss			—						—						—						(7)						—						(7)
Issuance of common stock from stock plans			9						—						246						—						—						246
Tax withholding related to vesting of restricted stock units			(2)						—						(507)						—						—						(507)
Cash dividends declared and paid ($0.04 per common share)			—						—						—						—						(99)						(99)
Stock-based compensation			—						—						743						—						—						743
Balances, Apr 30, 2023			2,473						$	2					$	12,453					$	(50)					$	12,115					$	24,520

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
Cash flows from operating activities:
Net income			$	14,881					$	2,043
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense			1,011						735
Depreciation and amortization			410						384
Realized and unrealized (gains) losses on investments in non-affiliated entities, net			(69)						14
Deferred income taxes			(1,577)						(1,135)
Other			(145)						(34)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable			(2,366)						(252)
Inventories			(577)						566
Prepaid expenses and other assets			(726)						(215)
Accounts payable			(22)						11
Accrued and other current liabilities			4,202						689
Other long-term liabilities			323						105
Net cash provided by operating activities			15,345						2,911
Cash flows from investing activities:
Proceeds from maturities of marketable securities			4,004						2,512
Proceeds from sales of marketable securities			149						—
Purchases of marketable securities			(9,303)						(2,801)
Purchases related to property and equipment and intangible assets			(369)						(248)
Acquisitions, net of cash acquired			(39)						(83)
Investments in non-affiliated entities			(135)						(221)
Net cash used in investing activities			(5,693)						(841)
Cash flows from financing activities:
Proceeds related to employee stock plans			285						246
Payments related to repurchases of common stock			(7,740)						—
Payments related to tax on restricted stock units			(1,752)						(507)
Dividends paid			(98)						(99)
Principal payments on property and equipment and intangible assets			(40)						(20)
Net cash used in financing activities			(9,345)						(380)
Change in cash and cash equivalents			307						1,690
Cash and cash equivalents at beginning of period			7,280						3,389
Cash and cash equivalents at end of period			$	7,587					$	5,079

See accompanying Notes to Condensed Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission, or SEC, Regulation S-X. The January 28, 2024 consolidated balance sheet was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024, as filed with the SEC, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of results of operations and financial position, have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024.

Significant Accounting Policies

There have been no material changes to our significant accounting policies disclosed in Note 1 - Organization and Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024.

Fiscal Year

We operate on a 52- or 53-week year, ending on the last Sunday in January. Fiscal years 2025 and 2024 are both 52-week years. The first quarters of fiscal years 2025 and 2024 were both 13-week quarters.

Principles of Consolidation

Our condensed consolidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from our estimates. On an on-going basis, we evaluate our estimates, including those related to revenue recognition, cash equivalents and marketable securities, accounts receivable, inventories and product purchase commitments, income taxes, goodwill, stock-based compensation, litigation, investigation and settlement costs, property, plant, and equipment, and other contingencies. These estimates are based on historical facts and various other assumptions that we believe are reasonable.

Recently Issued Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board, or FASB, issued a new accounting standard to provide for additional disclosures about significant expenses in operating segments. The standard is effective for our annual reporting starting with fiscal year 2025 and for interim period reporting starting in fiscal year 2026 retrospectively. We are currently evaluating the impact of this standard on our Consolidated Financial Statements.

In December 2023, the FASB issued a new accounting standard which provides for new and updated income tax disclosures, including disaggregation of rate reconciliation and income taxes paid. The standard is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and should be applied prospectively, with retrospective application permitted. We expect to adopt this standard in our annual reporting starting with fiscal year 2026. We are currently evaluating the impact of this standard on our Consolidated Financial Statements.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 2 - Leases

Our lease obligations primarily consist of operating leases for our headquarters complex, domestic and international office facilities, and data center space, with lease periods expiring between fiscal years 2025 and 2035.

Future minimum lease payments under our non-cancelable operating leases as of April 28, 2024 were as follows:

			Operating Lease Obligations
			(In millions)
Fiscal Year:
2025 (excluding first quarter of fiscal year 2025)			$	221
2026			306
2027			290
2028			270
2029			236
2030 and thereafter			410
Total			1,733
Less imputed interest			206
Present value of net future minimum lease payments			1,527
Less short-term operating lease liabilities			246
Long-term operating lease liabilities			$	1,281

In addition, we have operating leases, primarily for our data centers, that are expected to commence during fiscal year 2025 with lease terms of 2 to 11 years for $923 million.

Operating lease expenses were $80 million and $59 million for the first quarter of fiscal years 2025 and 2024, respectively. Short-term and variable lease expenses for the first quarter of fiscal years 2025 and 2024 were not significant.

Other information related to leases was as follows:

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
			(In millions)
Supplemental cash flows information
Operating cash flows used for operating leases			$	69					$	61
Operating lease assets obtained in exchange for lease obligations			250						106

As of April 28, 2024, our operating leases had a weighted average remaining lease term of 6.3 years and a weighted average discount rate of 3.89%. As of January 28, 2024, our operating leases had a weighted average remaining lease term of 6.1 years and a weighted average discount rate of 3.76%.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 3 - Stock-Based Compensation

Our stock-based compensation expense is associated with restricted stock units, or RSUs, performance stock units that are based on our corporate financial performance targets, or PSUs, performance stock units that are based on market conditions, or market-based PSUs, and our employee stock purchase plan, or ESPP.

Our Condensed Consolidated Statements of Income include stock-based compensation expense, net of amounts capitalized into inventory and subsequently recognized to cost of revenue, as follows:

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
			(In millions)
Cost of revenue			$	36					$	27
Research and development			727						524
Sales, general and administrative			248						184
Total			$	1,011					$	735

Equity Award Activity

The following is a summary of our equity award transactions under our equity incentive plans:

			RSUs, PSUs, and Market-based PSUs Outstanding
			Number of Shares						Weighted Average Grant-Date Fair Value Per Share
			(In millions, except per share data)
Balances, Jan 28, 2024			37						$	245.94
Granted			7						$	801.79
Vested			(6)						$	176.59
Balances, Apr 28, 2024			38						$	361.45

As of April 28, 2024, there was $13.2 billion of aggregate unearned stock-based compensation expense. This amount is expected to be recognized over a weighted average period of 2.6 years for RSUs, PSUs, and market-based PSUs, and 0.8 years for ESPP.

Note 4 - Net Income Per Share

The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented:

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
			(In millions, except per share data)
Numerator:
Net income			$	14,881					$	2,043
Denominator:
Basic weighted average shares			2,462						2,470
Dilutive impact of outstanding equity awards			27						20
Diluted weighted average shares			2,489						2,490
Net income per share:
Basic (1)			$	6.04					$	0.83
Diluted (2)			$	5.98					$	0.82
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive			6						4

(1) Calculated as net income divided by basic weighted average shares.

(2) Calculated as net income divided by diluted weighted average shares.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Diluted net income per share is computed using the weighted average number of common and potentially dilutive shares outstanding during the period, using the treasury stock method. Any anti-dilutive effect of equity awards outstanding is not included in the computation of diluted net income per share.

Note 5 - Income Taxes

Income tax expense was $2.4 billion and $166 million for the first quarter of fiscal years 2025 and 2024, respectively. Income tax expense as a percentage of income before income tax was 13.9% and 7.5% for the first quarter of fiscal years 2025 and 2024, respectively.

The effective tax rate increased primarily due to a decreased effect of tax benefits from the foreign-derived intangible income deduction and stock-based compensation relative to the increase in income before income tax.

Our effective tax rates for the first quarter of fiscal years 2025 and 2024 were lower than the U.S. federal statutory rate of 21% due to tax benefits from stock-based compensation, the foreign-derived intangible income deduction, income earned in jurisdictions that are subject to taxes lower than the U.S. federal statutory tax rate, and the U.S. federal research tax credit.

While we believe that we have adequately provided for all uncertain tax positions, or tax positions where we believe it is not more-likely-than-not that the position will be sustained upon review, amounts asserted by tax authorities could be greater or less than our accrued position. Accordingly, our provisions on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved with the respective tax authorities. As of April 28, 2024, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next 12 months.

Note 6 - Cash Equivalents and Marketable Securities

Our cash equivalents and marketable securities related to publicly held debt securities are classified as “available-for-sale” debt securities.

The following is a summary of cash equivalents and marketable securities:

			Apr 28, 2024
			Amortized Cost						Unrealized Gain						Unrealized Loss						Estimated Fair Value						Reported as
															Cash Equivalents						Marketable Securities
			(In millions)
Corporate debt securities			$	11,397					$	3					$	(43)					$	11,357					$	733					$	10,624
Debt securities issued by the U.S. Treasury			11,314						—						(62)						11,252						886						10,366
Money market funds			5,374						—						—						5,374						5,374						—
Debt securities issued by U.S. government agencies			2,826						—						(7)						2,819						189						2,630
Certificates of deposit			286						—						—						286						69						217
Foreign government bonds			14						—						—						14						—						14
Total			$	31,211					$	3					$	(112)					$	31,102					$	7,251					$	23,851

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

			Jan 28, 2024
			Amortized Cost						Unrealized Gain						Unrealized Loss						Estimated Fair Value						Reported as
															Cash Equivalents						Marketable Securities
			(In millions)
Corporate debt securities			$	10,126					$	31					$	(5)					$	10,152					$	2,231					$	7,921
Debt securities issued by the U.S. Treasury			9,517						17						(10)						9,524						1,315						8,209
Money market funds			3,031						—						—						3,031						3,031						—
Debt securities issued by U.S. government agencies			2,326						8						(1)						2,333						89						2,244
Certificates of deposit			510						—						—						510						294						216
Foreign government bonds			174						—						—						174						60						114
Total			$	25,684					$	56					$	(16)					$	25,724					$	7,020					$	18,704

The following tables provide the breakdown of unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position:

			Apr 28, 2024
			Less than 12 Months												12 Months or Greater												Total
			Estimated Fair Value						Gross Unrealized Loss						Estimated Fair Value						Gross Unrealized Loss						Estimated Fair Value						Gross Unrealized Loss
			(In millions)
Debt securities issued by the U.S. Treasury			$	9,720					$	(60)					$	756					$	(2)					$	10,476					$	(62)
Corporate debt securities			6,943						(42)						188						(1)						7,131						(43)
Debt securities issued by U.S. government agencies			2,391						(7)						—						—						2,391						(7)
Total			$	19,054					$	(109)					$	944					$	(3)					$	19,998					$	(112)

			Jan 28, 2024
			Less than 12 Months												12 Months or Greater												Total
			Estimated Fair Value						Gross Unrealized Loss						Estimated Fair Value						Gross Unrealized Loss						Estimated Fair Value						Gross Unrealized Loss
			(In millions)
Debt securities issued by the U.S. Treasury			$	3,343					$	(5)					$	1,078					$	(5)					$	4,421					$	(10)
Corporate debt securities			1,306						(3)						618						(2)						1,924						(5)
Debt securities issued by U.S. government agencies			670						(1)						—						—						670						(1)
Total			$	5,319					$	(9)					$	1,696					$	(7)					$	7,015					$	(16)

The gross unrealized losses are related to fixed income securities, driven primarily by changes in interest rates. Net realized gains and losses were not significant for all periods presented.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The amortized cost and estimated fair value of cash equivalents and marketable securities are shown below by contractual maturity.

			Apr 28, 2024												Jan 28, 2024
			Amortized Cost						Estimated Fair Value						Amortized Cost						Estimated Fair Value
			(In millions)
Less than one year			$	16,811					$	16,800					$	16,336					$	16,329
Due in 1 - 5 years			14,400						14,302						9,348						9,395
Total			$	31,211					$	31,102					$	25,684					$	25,724

Note 7 - Fair Value of Financial Assets and Liabilities and Investments in Non-Affiliated Entities

The fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. We review fair value hierarchy classification on a quarterly basis.

			Pricing Category						Fair Value at
						Apr 28, 2024						Jan 28, 2024
									(In millions)
Assets
Cash equivalents and marketable securities:
Money market funds			Level 1						$	5,374					$	3,031
Corporate debt securities			Level 2						$	11,357					$	10,152
Debt securities issued by the U.S. Treasury			Level 2						$	11,252					$	9,524
Debt securities issued by U.S. government agencies			Level 2						$	2,819					$	2,333
Certificates of deposit			Level 2						$	286					$	510
Foreign government bonds			Level 2						$	14					$	174
Other assets (Investments in non-affiliated entities):
Publicly-held equity securities			Level 1						$	287					$	225
Liabilities (1)
0.584% Notes Due 2024			Level 2						$	1,242					$	1,228
3.20% Notes Due 2026			Level 2						$	960					$	970
1.55% Notes Due 2028			Level 2						$	1,096					$	1,115
2.85% Notes Due 2030			Level 2						$	1,331					$	1,367
2.00% Notes Due 2031			Level 2						$	1,026					$	1,057
3.50% Notes Due 2040			Level 2						$	805					$	851
3.50% Notes Due 2050			Level 2						$	1,487					$	1,604
3.70% Notes Due 2060			Level 2						$	368					$	403

(1) These liabilities are carried on our Condensed Consolidated Balance Sheets at their original issuance value, net of unamortized debt discount and issuance costs.

Investments in Non-Affiliated Entities

Our investments in non-affiliated entities include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies.

Our marketable equity securities have readily determinable fair values and are recorded in long-term other assets on our Condensed Consolidated Balance Sheets at fair value with changes in fair value recorded in Other income and expense, net on our Condensed Consolidated Statements of Income. Marketable equity securities totaled $287 million and $225 million as of April 28, 2024 and January 28, 2024, respectively. The net unrealized and realized gains and losses of investments in marketable securities were not significant for the first quarter of fiscal years 2025 and 2024.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Our non-marketable equity securities are recorded in long-term other assets on our Condensed Consolidated Balance Sheets and valued under the measurement alternative. The carrying value of our non-marketable equity securities totaled $1.5 billion and $1.3 billion as of April 28, 2024 and January 28, 2024, respectively. Gains and losses on these investments, realized and unrealized, are recognized in Other income and expense, net on our Condensed Consolidated Statements of Income.

Adjustments to the carrying value of our non-marketable equity securities during the first quarter of fiscal years 2025 and 2024 were as follows:

			Apr 28, 2024						Apr 30, 2023
			(In millions)
Balance at beginning of period			$	1,321					$	288
Adjustments related to non-marketable equity securities:
Net additions			127						221
Unrealized gains			15						—
Impairments and unrealized losses			—						(13)
Balance at end of period			$	1,463					$	496

The following table summarizes the cumulative gross unrealized gains, losses and impairments related to non-marketable equity securities:

			Apr 28, 2024
			(In millions)
Cumulative gross unrealized gains			$	285
Cumulative gross impairments and unrealized losses			(45)

Note 8 - Amortizable Intangible Assets and Goodwill

The components of our amortizable intangible assets are as follows:

			Apr 28, 2024																		Jan 28, 2024
			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
			(In millions)
Acquisition-related intangible assets			$	2,648					$	(1,844)					$	804					$	2,642					$	(1,720)					$	922
Patents and licensed technology			442						(260)						182						449						(259)						190
Total intangible assets			$	3,090					$	(2,104)					$	986					$	3,091					$	(1,979)					$	1,112

Amortization expense associated with intangible assets was $143 million and $181 million for the first quarter of fiscal year 2025 and 2024, respectively.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The following table outlines the estimated amortization expense related to the net carrying amount of intangible assets as of April 28, 2024:

			Future Amortization Expense
			(In millions)
Fiscal Year:
2025 (excluding first quarter of fiscal year 2025)			$	418
2026			267
2027			155
2028			37
2029			9
2030 and thereafter			100
Total			$	986

In the first quarter of fiscal year 2025, goodwill increased by $23 million from business combinations, and was assigned to our Compute & Networking segment.

Note 9 - Balance Sheet Components

Two customers accounted for 16% and 15% of our accounts receivable balance as of April 28, 2024. Two customers accounted for 24% and 11% of our accounts receivable balance as of January 28, 2024.

Certain balance sheet components are as follows:

			Apr 28, 2024						Jan 28, 2024
Inventories (1):			(In millions)
Raw materials			$	1,991					$	1,719
Work in process			1,625						1,505
Finished goods			2,248						2,058
Total inventories			$	5,864					$	5,282

(1) During the first quarter of fiscal years 2025 and 2024, we recorded an inventory provision of $210 million and $105 million, respectively, in cost of revenue.

			Apr 28, 2024						Jan 28, 2024
Other Assets:			(In millions)
Prepaid supply and capacity agreements (1)			$	2,232					$	2,458
Investments in non-affiliated entities			1,750						1,546
Prepaid royalties			358						364
Other			228						132
Total other assets			$	4,568					$	4,500

(1) As of April 28, 2024 and January 28, 2024, there were an additional $3.3 billion and $2.5 billion of short-term prepaid supply and capacity agreements included in Prepaid expenses and other current assets, respectively.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

			Apr 28, 2024						Jan 28, 2024
Accrued and Other Current Liabilities:			(In millions)
Taxes payable (1)			$	3,881					$	296
Customer program accruals			2,744						2,081
Excess inventory purchase obligations (2)			1,684						1,655
Deferred revenue (3)			845						764
Product warranty and return provisions			643						415
Accrued payroll and related expenses			639						675
Unsettled share repurchases			262						187
Operating leases			246						228
Licenses and royalties			164						182
Other			150						199
Total accrued and other current liabilities			$	11,258					$	6,682

(1) We did not make any estimated federal or state tax payments in the first quarter and expect our cash taxes to substantially increase in the second quarter as we will make two federal and state estimated tax payments.

(2) During the first quarter of fiscal years 2025 and 2024, we recorded an expense of approximately $183 million and $29 million, respectively, in cost of revenue for inventory purchase obligations in excess of our current demand projections, supplier charges, and penalties related to cancellations and underutilization.

(3) Deferred revenue primarily includes customer advances and deferrals related to hardware support, software support, cloud services, and license and development arrangements. $274 million and $233 million of the balance in the first quarter of fiscal year 2025 and in fiscal year 2024, respectively, were related to customer advances.

			Apr 28, 2024						Jan 28, 2024
Other Long-Term Liabilities:			(In millions)
Income tax payable (1)			$	1,553					$	1,361
Deferred revenue (2)			704						573
Deferred income tax			583						462
Licenses payable			60						80
Other			66						65
Total other long-term liabilities			$	2,966					$	2,541

(1) Income tax payable is comprised of the long-term portion of the one-time transition tax payable, unrecognized tax benefits, and related interest and penalties.

(2) Deferred revenue primarily includes deferrals related to hardware support and software support.

Deferred Revenue

The following table shows the changes in short and long term deferred revenue during the first quarter of fiscal years 2025 and 2024:

			Apr 28, 2024						Apr 30, 2023
			(In millions)
Balance at beginning of period			$	1,337					$	572
Deferred revenue additions during the period			553						287
Revenue recognized during the period			(341)						(262)
Balance at end of period			$	1,549					$	597

We recognized $188 million in revenue in the first quarter of fiscal year 2025 from deferred revenue as of January 28, 2024.

Revenue allocated to remaining performance obligations, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods, was $1.3 billion as of April 28, 2024. We expect to recognize approximately 38% of this revenue over the next twelve months and the remainder thereafter. This excludes revenue related to performance obligations for contracts with a length of one year or less.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 10 - Derivative Financial Instruments

We enter into foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. These contracts are designated as cash flow hedges for hedge accounting treatment. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss and reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur.

We also enter into foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities. The change in fair value of these non-designated contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense.

The table below presents the notional value of our foreign currency contracts outstanding:

			Apr 28, 2024						Jan 28, 2024
			(In millions)
Designated as cash flow hedges			$	1,198					$	1,168
Non-designated hedges			$	704					$	597

The unrealized gains and losses or fair value of our foreign currency contracts was not significant as of April 28, 2024 and January 28, 2024.

As of April 28, 2024, all designated foreign currency contracts mature within 18 months. The expected realized gains and losses deferred to accumulated other comprehensive income or loss related to foreign currency contracts was not significant.

During the first quarter of fiscal years 2025 and 2024, the impact of derivative financial instruments designated for hedge accounting treatment in other comprehensive income or loss was not significant and the instruments were determined to be highly effective.

Note 11 - Debt

Long-Term Debt

						Expected Remaining Term (years)						Effective Interest Rate						Carrying Value at
												Apr 28, 2024						Jan 28, 2024
																		(In millions)
0.584% Notes Due 2024						0.1						0.66%						1,250						1,250
3.20% Notes Due 2026						2.4						3.31%						1,000						1,000
1.55% Notes Due 2028						4.1						1.64%						1,250						1,250
2.85% Notes Due 2030						5.9						2.93%						1,500						1,500
2.00% Notes Due 2031						7.1						2.09%						1,250						1,250
3.50% Notes Due 2040						15.9						3.54%						1,000						1,000
3.50% Notes Due 2050						25.9						3.54%						2,000						2,000
3.70% Notes Due 2060						36.0						3.73%						500						500
Unamortized debt discount and issuance costs																		(40)						(41)
Net carrying amount																		9,710						9,709
Less short-term portion																		(1,250)						(1,250)
Total long-term portion																		$	8,460					$	8,459

Our notes are unsecured senior obligations. Existing and future liabilities of our subsidiaries will be effectively senior to the notes. Our notes pay interest semi-annually. We may redeem each of our notes prior to maturity, as defined in the applicable form of note. The maturity of the notes are calendar year.

As of April 28, 2024, we were in compliance with the required covenants, which are non-financial in nature, under the outstanding notes.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Commercial Paper

We have a $575 million commercial paper program to support general corporate purposes. As of April 28, 2024, we had no commercial paper outstanding.

Note 12 - Commitments and Contingencies

Purchase Obligations

Our purchase obligations reflect our commitment to purchase components used to manufacture our products, including long-term supply and capacity agreements, certain software and technology licenses, other goods and services and long-lived assets.

As of April 28, 2024, we had outstanding inventory purchases and long-term supply and capacity obligations totaling $18.8 billion. We enter into agreements with contract manufacturers that allow them to procure inventory based upon our defined criteria, and in certain instances, these agreements are cancellable, able to be rescheduled, and adjustable for our business needs prior to placing firm orders. These changes may result in costs incurred through the date of cancellation. Other non-inventory purchase obligations were $10.6 billion, including $8.8 billion of multi-year cloud service agreements. We expect our cloud service agreements to be used to support our research and development efforts and our DGX Cloud offerings.

Total future purchase commitments as of April 28, 2024 are as follows:

			Commitments
			(In millions)
Fiscal Year:
2025 (excluding first quarter of fiscal year 2025)			$	19,306
2026			3,438
2027			2,573
2028			2,222
2029			1,585
2030 and thereafter			249
Total			$	29,373

In addition to the purchase commitments included in the table above, at the end of the first quarter of fiscal year 2025, we had commitments of approximately $1.2 billion to complete business combinations, subject to closing conditions, and acquire land and buildings.

Accrual for Product Warranty Liabilities

The estimated amount of product warranty liabilities was $532 million and $306 million as of April 28, 2024 and January 28, 2024, respectively. The estimated product returns and product warranty activity consisted of the following:

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
			(In millions)
Balance at beginning of period			$	306					$	82
Additions			234						13
Utilization			(8)						(18)
Balance at end of period			$	532					$	77

We have provided indemnities for matters such as tax, product, and employee liabilities. We have included intellectual property indemnification provisions in our technology-related agreements with third parties. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Litigation

Securities Class Action and Derivative Lawsuits

The plaintiffs in the putative securities class action lawsuit, captioned 4:18-cv-07669-HSG, initially filed on December 21, 2018 in the United States District Court for the Northern District of California, and titled In Re NVIDIA Corporation Securities Litigation, filed an amended complaint on May 13, 2020. The amended complaint asserted that NVIDIA and certain NVIDIA executives violated Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 10b-5, by making materially false or misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand between May 10, 2017 and November 14, 2018. Plaintiffs also alleged that the NVIDIA executives who they named as defendants violated Section 20(a) of the Exchange Act. Plaintiffs sought class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees and expert fees, and further relief as the Court may deem just and proper. On March 2, 2021, the district court granted NVIDIA’s motion to dismiss the complaint without leave to amend, entered judgment in favor of NVIDIA and closed the case. On March 30, 2021, plaintiffs filed an appeal from judgment in the United States Court of Appeals for the Ninth Circuit, case number 21-15604. On August 25, 2023, a majority of a three-judge Ninth Circuit panel affirmed in part and reversed in part the district court’s dismissal of the case, with a third judge dissenting on the basis that the district court did not err in dismissing the case. On November 15, 2023, the Ninth Circuit denied NVIDIA’s petition for rehearing en banc of the Ninth Circuit panel’s majority decision to reverse in part the dismissal of the case, which NVIDIA had filed on October 10, 2023. On November 21, 2023, NVIDIA filed a motion with the Ninth Circuit for a stay of the mandate pending NVIDIA’s petition for a writ of certiorari in the Supreme Court of the United States and the Supreme Court’s resolution of the matter. On December 5, 2023, the Ninth Circuit granted NVIDIA’s motion to stay the mandate. NVIDIA filed a petition for a writ of certiorari on March 4, 2024. Four amicus briefs in support of NVIDIA’s petition were filed on April 5, 2024.

The putative derivative lawsuit pending in the United States District Court for the Northern District of California, captioned 4:19-cv-00341-HSG, initially filed January 18, 2019 and titled In re NVIDIA Corporation Consolidated Derivative Litigation, was stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. On February 22, 2022, the court administratively closed the case, but stated that it would reopen the case once the appeal in the In Re NVIDIA Corporation Securities Litigation action is resolved. The stay remains in place. The lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs are seeking unspecified damages and other relief, including reforms and improvements to NVIDIA’s corporate governance and internal procedures.

The putative derivative actions initially filed September 24, 2019 and pending in the United States District Court for the District of Delaware, Lipchitz v. Huang, et al. (Case No. 1:19-cv-01795-UNA) and Nelson v. Huang, et. al. (Case No. 1:19-cv-01798- UNA), remain stayed pending resolution of the plaintiffs’ appeal in the In Re NVIDIA Corporation Securities Litigation action. The lawsuits assert claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty, unjust enrichment, insider trading, misappropriation of information, corporate waste and violations of Sections 14(a), 10(b), and 20(a) of the Exchange Act based on the dissemination of allegedly false, and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and unspecified corporate governance measures.

Another putative derivative action was filed on October 30, 2023 in the Court of Chancery of the State of Delaware, captioned Horanic v. Huang, et al. (Case No. 2023-1096-KSJM). This lawsuit asserts claims, purportedly on behalf of us, against certain officers and directors of the Company for breach of fiduciary duty and insider trading based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining on GPU demand. The plaintiffs seek unspecified damages and other relief, including disgorgement of profits from the sale of NVIDIA stock and reform of unspecified corporate governance measures. This derivative matter is stayed pending the final resolution of In Re NVIDIA Corporation Securities Litigation action.

Accounting for Loss Contingencies

As of April 28, 2024, there are no accrued contingent liabilities associated with the legal proceedings described above based on our belief that liabilities, while possible, are not probable. Further, except as described above, any possible loss or range of loss in these matters cannot be reasonably estimated at this time. We are engaged in legal actions not described above arising in the ordinary course of business and, while there can be no assurance of favorable outcomes, we believe that the ultimate outcome of these actions will not have a material adverse effect on our operating results, liquidity or financial position.

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 13 - Shareholders’ Equity

Capital Return Program

During the first quarter of fiscal year 2025, we repurchased 9.9 million shares of our common stock for $8.0 billion. We did not repurchase any shares during the first quarter of fiscal year 2024. As of April 28, 2024, we were authorized, subject to certain specifications, to repurchase up to $14.5 billion additional shares of our common stock. Our share repurchase program aims to offset dilution from shares issued to employees. We may pursue additional share repurchases as we weigh market factors and other investment opportunities.

From April 29, 2024 through May 24, 2024, we repurchased 2.3 million shares for $2.1 billion pursuant to a Rule 10b5-1 trading plan.

During the first quarter of fiscal years 2025 and 2024, we paid $98 million and $99 million in cash dividends to our shareholders, respectively. Our cash dividend program and the payment of future cash dividends under that program are subject to our Board of Directors' continuing determination that the dividend program and the declaration of dividends thereunder are in the best interests of our shareholders.

Note 14 - Segment Information

Our Chief Executive Officer is our chief operating decision maker, or CODM, and reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance.

The Compute & Networking segment includes our Data Center accelerated computing platform; networking; automotive artificial intelligence, or AI, Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; electric vehicle computing platforms; Jetson for robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud.

The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse Enterprise software for building and operating 3D internet applications.

Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments.

The “All Other” category includes the expenses that our CODM does not assign to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance. The expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related and other costs, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature.

Our CODM does not review any information regarding total assets on a reportable segment basis. Depreciation and amortization expenses directly attributable to each reportable segment are included in operating results for each segment. However, our CODM does not evaluate depreciation and amortization expense by operating segment and, therefore, it is not separately presented. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments and the “All Other” category.

			Compute & Networking						Graphics						All Other						Consolidated
			(In millions)
Three Months Ended Apr 28, 2024
Revenue			$	22,675					$	3,369					$	—					$	26,044
Operating income (loss)			$	17,047					$	1,241					$	(1,379)					$	16,909
Three Months Ended Apr 30, 2023
Revenue			$	4,460					$	2,732					$	—					$	7,192
Operating income (loss)			$	2,160					$	1,046					$	(1,066)					$	2,140

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
			(In millions)
Reconciling items included in "All Other" category:
Stock-based compensation expense			$	(1,011)					$	(735)
Unallocated cost of revenue and operating expenses			(229)						(154)
Acquisition-related and other costs			(140)						(173)
Other			1						(4)
Total			$	(1,379)					$	(1,066)

Revenue by geographic areas is based upon the billing location of the customer. End customer and shipping location may be different from our customer’s billing location. For example, most of the shipments associated with Singapore revenue went to either the United States or Taiwan in the first quarter of fiscal year 2025. Shipments to Singapore were insignificant. Revenue by geographic areas was as follows:

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
			(In millions)
Revenue:
United States			$	13,496					$	2,385
Taiwan			4,373						1,796
Singapore			4,037						762
China (including Hong Kong)			2,491						1,590
Other countries			1,647						659
Total revenue			$	26,044					$	7,192

The increase in revenue to the United States for the first quarter of fiscal year 2025 was primarily due to higher U.S.-based Compute & Networking segment demand.

Sales to one direct customer, Customer A, represented 13% of total revenue and sales to a second direct customer, Customer B, represented 11% of total revenue for the first quarter of fiscal year 2025, both of which were attributable to the Compute & Networking segment. No customer represented 10% or more of total revenue for the first quarter of fiscal year 2024.

The following table summarizes information pertaining to our revenue by each of the specialized markets we serve:

			Three Months Ended
			Apr 28, 2024						Apr 30, 2023
			(In millions)
Revenue:
Data Center			$	22,563					$	4,284
Compute			19,392						3,357
Networking			3,171						927
Gaming			2,647						2,240
Professional Visualization			427						295
Automotive			329						296
OEM and Other			78						77
Total revenue			$	26,044					$	7,192

NVIDIA Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 15 - Subsequent Events

On May 22, 2024, we announced a ten-for-one forward stock split, or the Stock Split, of our issued common stock to be effected through the filing of an amendment to our Restated Certificate of Incorporation, or the Amendment, with the Secretary of the State of Delaware. The Amendment will result in a proportionate increase in the number of shares of authorized common stock. As a result of the Stock Split, each record holder of common stock as of the close of market on June 6, 2024 will receive nine additional shares of common stock, to be distributed after the close of market on June 7, 2024. The following table reflects basic and diluted weighted average shares and net income per share on an unaudited pro forma basis giving effect to the Stock Split as if it had been effective for all periods presented:

			Pro Forma (Unaudited)
			Three Months Ended												Year Ended
			Apr 28, 2024						Apr 30, 2023						Jan 28, 2024						Jan 29, 2023						Jan 30, 2022
			(In millions, except per share data)
Numerator:
Net income			$	14,881					$	2,043					$	29,760					$	4,368					$	9,752
Denominator:
Basic weighted average shares			24,620						24,700						24,690						24,870						24,960
Dilutive impact of outstanding equity awards			270						200						250						200						390
Diluted weighted average shares			24,890						24,900						24,940						25,070						25,350
Net income per share:
Basic (1)			$	0.60					$	0.08					$	1.21					$	0.18					$	0.39
Diluted (2)			$	0.60					$	0.08					$	1.19					$	0.17					$	0.38

(1) Calculated as net income divided by basic weighted average shares.

(2) Calculated as net income divided by diluted weighted average shares.

On May 22, 2024, we also announced an increase in our quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock. The increased dividend is equivalent to $0.01 per share on a post-Stock Split basis and will be paid on June 28, 2024, to all shareholders of record on June 11, 2024.