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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-QQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended July 28,2024ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934Commis

2、sion file number:0-23985NVIDIA CORPORATION(Exact name of registrant as specified in its charter)Delaware94-3177549(State or other jurisdiction of(I.R.S.Employerincorporation or organization)Identification No.)2788 San Tomas Expressway,Santa Clara,California95051(Address of principal executive office

3、s)(Zip Code)(408)486-2000(Registrants telephone number,including area code)N/A(Former name,former address and former fiscal year if changed since last report)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon

4、Stock,$0.001 par value per shareNVDAThe Nasdaq Global Select MarketIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12months(or for such shorter period that the registrant was

5、required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 ofthis chapter)

6、during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.Se

7、e the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indic

8、ate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-

9、2 of the Exchange Act).Yes No The number of shares of common stock,$0.001 par value,outstanding as of August 23,2024,was 24.53 billion.NVIDIA CorporationForm 10-QFor the Quarter Ended July 28,2024Table of Contents Page Part I:Financial Information Item 1.Financial Statements(Unaudited)a)Condensed Co

10、nsolidated Statements of Income for the three and six months ended July 28,2024 and July 30,20233b)Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 28,2024 and July 30,20234 c)Condensed Consolidated Balance Sheets as of July 28,2024 and January 28,202

11、45d)Condensed Consolidated Statements of Shareholders Equity for the three and six months ended July 28,2024 and July 30,20236 e)Condensed Consolidated Statements of Cash Flows for the six months ended July 28,2024 and July 30,20238 f)Notes to Condensed Consolidated Financial Statements9Item 2.Manag

12、ements Discussion and Analysis of Financial Condition and Results of Operations24Item 3.Quantitative and Qualitative Disclosures About Market Risk33Item 4.Controls and Procedures33 Part II:Other Information Item 1.Legal Proceedings34Item 1A.Risk Factors34Item 2.Unregistered Sales of Equity Securitie

13、s and Use of Proceeds40Item 5.Other Information40Item 6.Exhibits41Signature 42Where You Can Find More InformationInvestors and others should note that we announce material financial information to our investors using our investor relations website,press releases,SECfilings and public conference call

14、s and webcasts.We also use the following social media channels as a means of disclosing information about the company,ourproducts,our planned financial and other announcements and attendance at upcoming investor and industry conferences,and other matters,and for complyingwith our disclosure obligati

15、ons under Regulation FD:NVIDIA Corporate Blog(http:/)NVIDIA Technical Blog(http:/ LinkedIn Page(http:/ Facebook Page(https:/ Instagram Page(https:/ X Account(https:/ addition,investors and others can view NVIDIA videos on YouTube(https:/www.YouT information we post through these social media channel

16、s may be deemed material.Accordingly,investors should monitor these accounts and the blog,inaddition to following our press releases,SEC filings and public conference calls and webcasts.This list may be updated from time to time.The information wepost through these channels is not a part of this Qua

17、rterly Report on Form 10-Q.These channels may be updated from time to time on NVIDIAs investorrelations website.2Part I.Financial InformationItem 1.Financial Statements(Unaudited)NVIDIA Corporation and SubsidiariesCondensed Consolidated Statements of Income(In millions,except per share data)(Unaudit

18、ed)Three Months EndedSix Months Ended Jul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023Revenue$30,040$13,507$56,084$20,699 Cost of revenue7,466 4,045 13,105 6,589 Gross profit22,574 9,462 42,979 14,110 Operating expenses Research and development3,090 2,040 5,810 3,916 Sales,general and administrative842

19、622 1,618 1,253 Total operating expenses3,932 2,662 7,428 5,169 Operating income18,642 6,800 35,551 8,941 Interest income444 187 803 338 Interest expense(61)(65)(125)(131)Other,net189 59 264 42 Other income(expense),net572 181 942 249 Income before income tax19,214 6,981 36,493 9,190 Income tax expe

20、nse2,615 793 5,013 958 Net income$16,599$6,188$31,480$8,232 Net income per share:Basic$0.68$0.25$1.28$0.33 Diluted$0.67$0.25$1.27$0.33 Weighted average shares used in per share computation:Basic24,578 24,729 24,599 24,716 Diluted24,848 24,994 24,869 24,948 See accompanying Notes to Condensed Consoli

21、dated Financial Statements.3NVIDIA Corporation and SubsidiariesCondensed Consolidated Statements of Comprehensive Income(In millions)(Unaudited)Three Months EndedSix Months Ended Jul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023 Net income$16,599$6,188$31,480$8,232 Other comprehensive income(loss),net of

22、 taxAvailable-for-sale securities:Net change in unrealized gain(loss)150(11)22 7 Cash flow hedges:Net change in unrealized gain23 22 20 8 Reclassification adjustments for net realized loss included in netincome(8)(12)(13)(23)Net change in unrealized gain(loss)15 10 7(15)Other comprehensive income(lo

23、ss),net of tax165(1)29(8)Total comprehensive income$16,764$6,187$31,509$8,224 See accompanying Notes to Condensed Consolidated Financial Statements.4NVIDIA Corporation and SubsidiariesCondensed Consolidated Balance Sheets(In millions)(Unaudited)Jul 28,2024Jan 28,2024AssetsCurrent assets:Cash and cas

24、h equivalents$8,563$7,280 Marketable securities26,237 18,704 Accounts receivable,net14,132 9,999 Inventories6,675 5,282 Prepaid expenses and other current assets4,026 3,080 Total current assets59,633 44,345 Property and equipment,net4,885 3,914 Operating lease assets1,556 1,346 Goodwill4,622 4,430 I

25、ntangible assets,net952 1,112 Deferred income tax assets9,578 6,081 Other assets4,001 4,500 Total assets$85,227$65,728 Liabilities and Shareholders Equity Current liabilities:Accounts payable$3,680$2,699 Accrued and other current liabilities10,289 6,682 Short-term debt 1,250 Total current liabilitie

26、s13,969 10,631 Long-term debt8,461 8,459 Long-term operating lease liabilities1,304 1,119 Other long-term liabilities3,336 2,541 Total liabilities27,070 22,750 Commitments and contingencies-see Note 12Shareholders equity:Preferred stock Common stock25 25 Additional paid-in capital12,115 13,109 Accum

27、ulated other comprehensive income56 27 Retained earnings45,961 29,817 Total shareholders equity58,157 42,978 Total liabilities and shareholders equity$85,227$65,728 See accompanying Notes to Condensed Consolidated Financial Statements.5NVIDIA Corporation and SubsidiariesCondensed Consolidated Statem

28、ents of Shareholders EquityFor the Three Months Ended July 28,2024 and July 30,2023(Unaudited)Common StockOutstandingAdditionalPaid-in CapitalAccumulated OtherComprehensiveIncome(Loss)RetainedEarningsTotalShareholdersEquitySharesAmount(In millions,except per share data)Balances,Apr 28,202424,598$25$

29、12,628$(109)$36,598$49,142 Net income 16,599 16,599 Other comprehensive income 165 165 Issuance of common stock from stock plans 38 Tax withholding related to vesting of restricted stock units(11)(1,637)(1,637)Shares repurchased(63)(38)(6,990)(7,028)Cash dividends declared and paid($0.01 per common

30、share)(246)(246)Stock-based compensation 1,162 1,162 Balances,Jul 28,202424,562$25$12,115$56$45,961$58,157 Balances,Apr 30,202324,731$25$12,430$(50)$12,115$24,520 Net income 6,188 6,188 Other comprehensive loss (1)(1)Issuance of common stock from stock plans 52 1 1 Tax withholding related to vesting

31、 of restricted stock units(16)(672)(672)Shares repurchased(75)(1)(3,283)(3,284)Cash dividends declared and paid($0.004 per common share)(99)(99)Stock-based compensation 848 848 Balances,Jul 30,202324,692$25$12,606$(51)$14,921$27,501 See accompanying Notes to Condensed Consolidated Financial Statemen

32、ts.6NVIDIA Corporation and SubsidiariesCondensed Consolidated Statements of Shareholders EquityFor the Six Months Ended July 28,2024 and July 30,2023(Unaudited)Common StockOutstandingAdditionalPaid-inCapitalAccumulated OtherComprehensiveIncome(Loss)RetainedEarningsTotalShareholdersEquitySharesAmount

33、(In millions,except per share data)Balances,Jan 28,202424,643$25$13,109$27$29,817$42,978 Net income 31,480 31,480 Other comprehensive income 29 29 Issuance of common stock from stock plans 113 285 285 Tax withholding related to vesting of restricted stock units(32)(3,389)(3,389)Shares repurchased(16

34、2)(71)(14,992)(15,063)Cash dividends declared and paid($0.014 per common share)(344)(344)Stock-based compensation 2,181 2,181 Balances,Jul 28,202424,562$25$12,115$56$45,961$58,157 Balances,Jan 29,202324,661$25$11,948$(43)$10,171$22,101 Net income 8,232 8,232 Other comprehensive loss (8)(8)Issuance o

35、f common stock from stock plans 143 247 247 Tax withholding related to vesting of restricted stock units(37)(1,179)(1,179)Shares repurchased(75)(1)(3,283)(3,284)Cash dividends declared and paid($0.008 per common share)(199)(199)Stock-based compensation 1,591 1,591 Balances,Jul 30,202324,692$25$12,60

36、6$(51)$14,921$27,501 See accompanying Notes to Condensed Consolidated Financial Statements.7NVIDIA Corporation and SubsidiariesCondensed Consolidated Statements of Cash Flows(In millions)(Unaudited)Six Months Ended Jul 28,2024Jul 30,2023Cash flows from operating activities:Net income$31,480$8,232 Ad

37、justments to reconcile net income to net cash provided by operating activities:Stock-based compensation expense2,164 1,576 Depreciation and amortization843 749 Gains on investments in non-affiliated entities and publicly-held equity securities,net(264)(45)Deferred income taxes(3,276)(1,881)Other(288

38、)(102)Changes in operating assets and liabilities,net of acquisitions:Accounts receivable(4,133)(3,239)Inventories(1,380)861 Prepaid expenses and other assets(12)(592)Accounts payable801 789 Accrued and other current liabilities3,314 2,675 Other long-term liabilities584 236 Net cash provided by oper

39、ating activities29,833 9,259 Cash flows from investing activities:Proceeds from maturities of marketable securities8,098 5,111 Proceeds from sales of marketable securities164 Purchases of marketable securities(15,047)(5,343)Purchases related to property and equipment and intangible assets(1,346)(537

40、)Acquisitions,net of cash acquired(317)(83)Purchases of investments in non-affiliated entities(534)(456)Proceeds from sales of investments in non-affiliated entities105 Other 21 Net cash used in investing activities(8,877)(1,287)Cash flows from financing activities:Proceeds related to employee stock

41、 plans285 247 Payments related to repurchases of common stock(14,898)(3,067)Repayment of debt(1,250)(1,250)Payments related to tax on restricted stock units(3,389)(1,179)Dividends paid(344)(199)Principal payments on property and equipment and intangible assets(69)(31)Net cash used in financing activ

42、ities(19,665)(5,479)Change in cash,cash equivalents,and restricted cash1,291 2,493 Cash,cash equivalents,and restricted cash at beginning of period7,280 3,389 Cash,cash equivalents,and restricted cash at end of period$8,571$5,882 Reconciliation of cash,cash equivalents,and restricted cash to the Con

43、densed Consolidated Balance Sheet:Cash and cash equivalents$8,563$5,783 Restricted cash,included in prepaid expenses and other current assets8 99 Total cash,cash equivalents,and restricted cash$8,571$5,882 Supplemental disclosure of cash flow information:Cash paid for income taxes,net$7,449$328 See

44、accompanying Notes to Condensed Consolidated Financial Statements.8NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Unaudited)Note 1-Summary of Significant Accounting PoliciesBasis of PresentationThe accompanying unaudited condensed consolidated financial state

45、ments were prepared in accordance with accounting principles generally accepted in theUnited 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 ExchangeCommission,or SEC,Regulation S-X.The January 28,2024 consolidat

46、ed balance sheet was derived from our audited consolidated financial statementsincluded 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 byU.S.GAAP.In the opinion of management,all adjustments,consisting o

47、nly of normal recurring adjustments considered necessary for a fair presentation ofresults of operations and financial position,have been included.The results for the interim periods presented are not necessarily indicative of the resultsexpected for any future period.The following information shoul

48、d be read in conjunction with the audited consolidated financial statements and notes theretoincluded in our Annual Report on Form 10-K for the fiscal year ended January 28,2024.In May 2024,we announced a ten-for-one stock split,or the Stock Split,of our issued common stock,which was effected throug

49、h the filing of an amendment tothe Companys Restated Certificate of Incorporation,or the Amendment,with the Secretary of the State of Delaware.In June 2024,the Company filed theAmendment to effect the Stock Split and proportionately increased the number of shares of the Companys authorized common st

50、ock from 8.0 billion to80.0 billion.Shareholders of record at the close of market on June 6,2024 received nine additional shares of common stock,distributed after the close of marketon June 7,2024.All share,equity award and per share amounts presented herein have been retrospectively adjusted to ref

51、lect the Stock Split.Significant Accounting PoliciesThere 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 1

52、0-K for the fiscal year ended January 28,2024.Fiscal YearWe 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 second quarters of fiscalyears 2025 and 2024 were both 13-week quarters.Principles of ConsolidationOur condensed cons

53、olidated financial statements include the accounts of NVIDIA Corporation and our wholly-owned subsidiaries.All intercompany balancesand transactions have been eliminated in consolidation.Use of EstimatesThe preparation of financial statements in conformity with U.S.GAAP requires management to make e

54、stimates and assumptions that affect the reportedamounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenueand expenses during the reporting period.Actual results could differ materially from our

55、estimates.On an on-going basis,we evaluate our estimates,includingthose related to accounts receivable,cash equivalents and marketable securities,goodwill,income taxes,inventories and product purchase commitments,investigation and settlement costs,litigation,other contingencies,property,plant,and eq

56、uipment,revenue recognition,and stock-based compensation.Theseestimates are based on historical facts and other assumptions that we believe are reasonable.Recently Issued Accounting PronouncementsRecent Accounting Pronouncements Not Yet AdoptedIn November 2023,the Financial Accounting Standards Boar

57、d,or FASB,issued a new accounting standard requiring disclosures of significant expenses inoperating segments.We expect to adopt this standard in our annual reporting starting with fiscal year 2025.We are currently evaluating the impact of thisstandard on our Consolidated Financial Statements.In Dec

58、ember 2023,the FASB issued a new accounting standard which includes new and updated income tax disclosures,including disaggregation of ratereconciliation and income taxes paid.We expect to adopt this standard in our annual reporting starting with fiscal year 2026.We are currently evaluating theimpac

59、t of this standard on our Consolidated Financial Statements.9NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Note 2-LeasesOur lease obligations primarily consist of operating leases for our headquarters complex,domestic and international o

60、ffice facilities,and data center space,withlease periods expiring between fiscal years 2025 and 2035.Future minimum lease payments under our non-cancelable operating leases as of July 28,2024 were as follows:Operating LeaseObligations(In millions)Fiscal Year:2025(excluding first half of fiscal year

61、2025)$144 2026316 2027299 2028280 2029247 2030 and thereafter486 Total1,772 Less imputed interest218 Present value of net future minimum lease payments1,554 Less short-term operating lease liabilities250 Long-term operating lease liabilities$1,304 In addition,operating leases of$1.0 billion,primaril

62、y for our data centers,are expected to commence during fiscal year 2025 with lease terms of 2 to 10.5 years.Operating lease expenses were$84 million and$67 million for the second quarter of fiscal years 2025 and 2024,respectively,and$164 million and$126 millionfor the first half of fiscal years 2025

63、 and 2024,respectively.Short-term and variable lease expenses for the second quarter and first half of fiscal years 2025 and2024 were not significant.Other information related to leases was as follows:Six Months EndedJul 28,2024Jul 30,2023(In millions)Supplemental cash flows information Operating ca

64、sh flow used for operating leases$146$135 Operating lease assets obtained in exchange for lease obligations$405$299 As of July 28,2024,our operating leases had a weighted average remaining lease term of 6.4 years and a weighted average discount rate of 4.03%.As ofJanuary 28,2024,our operating leases

65、 had a weighted average remaining lease term of 6.1 years and a weighted average discount rate of 3.76%.10NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Note 3-Stock-Based CompensationStock-based compensation expense is associated with re

66、stricted stock units,or RSUs,performance stock units that are based on our corporate financialperformance targets,or PSUs,performance stock units that are based on market conditions,or market-based PSUs,and employee stock purchase plan,orESPP.Condensed Consolidated Statements of Income include stock

67、-based compensation expense,net of amounts capitalized into inventory and subsequentlyrecognized to cost of revenue,as follows:Three Months EndedSix Months Ended Jul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023(In millions)Cost of revenue$40$31$75$58 Research and development832 600 1,559 1,124 Sales,gen

68、eral and administrative282 211 530 394 Total$1,154$842$2,164$1,576 Equity Award ActivityThe following is a summary of our equity award transactions under our equity incentive plans:RSUs,PSUs,and Market-based PSUs Outstanding Number of SharesWeighted Average Grant-Date FairValue Per Share(In millions

69、,except per share data)Balances,Jan 28,2024367$24.59 Granted79$82.68 Vested(93)$19.23 Canceled and forfeited(5)$28.82 Balances,Jul 28,2024348$39.16 As of July 28,2024,aggregate unearned stock-based compensation expense was$12.8 billion,which is expected to be recognized over a weighted averageperiod

70、 of 2.5 years for RSUs,PSUs,and market-based PSUs,and 0.8 years for ESPP.Note 4-Net Income Per ShareThe following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented:Three Months EndedSix Months EndedJul 28,2024Jul 30,2023Jul 28

71、,2024Jul 30,2023(In millions,except per share data)Numerator:Net income$16,599$6,188$31,480$8,232 Denominator:Basic weighted average shares24,578 24,729 24,599 24,716 Dilutive impact of outstanding equity awards270 265 270 232 Diluted weighted average shares24,848 24,994 24,869 24,948 Net income per

72、 share:Basic(1)$0.68$0.25$1.28$0.33 Diluted(2)$0.67$0.25$1.27$0.33 Equity awards excluded from diluted net income per share because theireffect would have been anti-dilutive5 104 68 136(1)Calculated as net income divided by basic weighted average shares.(2)Calculated as net income divided by diluted

73、 weighted average shares.11NVIDIA Corporation and SubsidiariesNotes 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,usingthe treasury

74、 stock method.The anti-dilutive effect of equity awards outstanding is not included in the computation of diluted net income per share.Note 5-Income TaxesIncome tax expense was$2.6 billion and$5.0 billion for the second quarter and first half of fiscal year 2025,respectively,and$793 million and$958

75、million forthe second quarter and first half of fiscal year 2024,respectively.The income tax expense as a percentage of income before income tax for the second quarterand first half of fiscal year 2025 was 13.6%and 13.7%,respectively,and 11.4%and 10.4%for the second quarter and first half of fiscal

76、year 2024,respectively.The effective tax rate increased primarily due to a lower percentage of tax benefits from the foreign-derived intangible income deduction relative to the increasein income before income tax.Effective tax rates for the first half of fiscal years 2025 and 2024 were lower than th

77、e U.S.federal statutory rate of 21%due to tax benefits from stock-basedcompensation,the foreign-derived intangible income deduction,income earned in jurisdictions that are subject to taxes lower than the U.S.federal statutory taxrate,and the U.S.federal research tax credit.Given our current and anti

78、cipated future earnings,we believe that we may release the valuation allowance associated with certain state deferred tax assets inthe near term,which would decrease our income tax expense for the period the release is recorded.The timing and amount of the valuation allowance releasecould vary based

79、 on our assessment of all available evidence.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 positionwill be sustained upon review,amounts asserted by tax authorities could be greater or less

80、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 otherwiseresolved with the respective tax authorities.As of July 28,2024,we do not beli

81、eve that our estimates,as otherwise provided for,on such tax positions willsignificantly increase or decrease within the next 12 months.Note 6-Cash Equivalents and Marketable Securities The following is a summary of cash equivalents and marketable securities:Jul 28,2024AmortizedCostUnrealizedGainUnr

82、ealizedLossEstimatedFair ValueReported as Cash EquivalentsMarketableSecurities(In millions)Debt securities issued by the U.S.Treasury$14,051$42$(10)$14,083$2,132$11,951 Corporate debt securities11,994 37(7)12,024 682 11,342 Money market funds5,252 5,252 5,252 Debt securities issued by U.S.government

83、agencies2,461 7(2)2,466 50 2,416 Certificates of deposit141 141 32 109 Total marketable securities with fair valueadjustments recorded in other comprehensiveincome$33,899$86$(19)$33,966$8,148$25,818 Publicly-held equity securities(1)$419$419 Total$33,899$86$(19)$34,385$8,148$26,237(1)Fair value adju

84、stments on publicly-held equity securities are recorded in net income.In the second quarter of fiscal year 2025,publicly-held equity securities from investments in non-affiliated entitieswere classified in marketable securities on our Condensed Consolidated Balance Sheets.For the second quarter and

85、first half of fiscal year 2025,net unrealized gains on investments in publicly-held equity securities were$132 million and$181 million,respectively.For the second quarter and first half of fiscal year 2024,net unrealized gains on investments in publicly-held equity securities were not significant.12

86、NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Jan 28,2024AmortizedCostUnrealizedGainUnrealizedLossEstimatedFair ValueReported as CashEquivalentsMarketableSecurities(In millions)Corporate debt securities$10,126$31$(5)$10,152$2,231$7,921 D

87、ebt securities issued by the U.S.Treasury9,517 17(10)9,524 1,315 8,209 Money market funds3,031 3,031 3,031 Debt securities issued by U.S.government agencies2,326 8(1)2,333 89 2,244 Certificates of deposit510 510 294 216 Foreign government bonds174 174 60 114 Total marketable securities with fair val

88、uechanges recorded in other comprehensiveincome$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 debt securities have beenin a continuous loss position:Jul 28,2024 Less than 12 Mont

89、hs12 Months or GreaterTotal Estimated FairValueGrossUnrealized LossEstimated FairValueGrossUnrealized LossEstimated FairValueGrossUnrealized Loss(In millions)Debt securities issued by U.S.government agencies$4,031$(8)$857$(2)$4,888$(10)Corporate debt securities3,170(5)396(2)3,566(7)Debt securities i

90、ssued by the U.S.Treasury1,210(1)117(1)1,327(2)Total$8,411$(14)$1,370$(5)$9,781$(19)Jan 28,2024 Less than 12 Months12 Months or GreaterTotal Estimated FairValueGrossUnrealized LossEstimated FairValueGrossUnrealized LossEstimated FairValueGrossUnrealized Loss(In millions)Debt securities issued by the

91、 U.S.Treasury$3,343$(5)$1,078$(5)$4,421$(10)Corporate debt securities1,306(3)618(2)1,924(5)Debt securities issued by U.S.government agencies670(1)670(1)Total$5,319$(9)$1,696$(7)$7,015$(16)Gross unrealized losses are related to fixed income securities,driven primarily by changes in interest rates.13N

92、VIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)The amortized cost and estimated fair value of debt securities included in cash equivalents and marketable securities are shown below by contractual maturity.Jul 28,2024Jan 28,2024Amortized Co

93、stEstimated FairValueAmortized CostEstimated FairValue(In millions)Less than one year$15,535$15,532$16,336$16,329 Due in 1-5 years18,364 18,434 9,348 9,395 Total$33,899$33,966$25,684$25,724 Note 7-Fair Value of Financial Assets and Liabilities and Investments in Non-Affiliated EntitiesThe fair value

94、s of our financial assets and liabilities are determined using quoted market prices of identical assets or market prices of similar assets from activemarkets.We review fair value classification on a quarterly basis.Pricing CategoryFair Value atJul 28,2024Jan 28,2024(In millions)AssetsCash equivalent

95、s and marketable securities:Money market fundsLevel 1$5,252$3,031 Publicly-held equity securitiesLevel 1$419$Debt securities issued by the U.S.TreasuryLevel 2$14,083$9,524 Corporate debt securitiesLevel 2$12,024$10,152 Debt securities issued by U.S.government agenciesLevel 2$2,466$2,333 Certificates

96、 of depositLevel 2$141$510 Foreign government bondsLevel 2$174 Other assets(Investments in non-affiliated entities):Publicly-held equity securitiesLevel 1$225 Liabilities(1)0.584%Notes Due 2024Level 2$1,228 3.20%Notes Due 2026Level 2$973$970 1.55%Notes Due 2028Level 2$1,126$1,115 2.85%Notes Due 2030

97、Level 2$1,380$1,367 2.00%Notes Due 2031Level 2$1,068$1,057 3.50%Notes Due 2040Level 2$839$851 3.50%Notes Due 2050Level 2$1,559$1,604 3.70%Notes Due 2060Level 2$386$403(1)These liabilities are carried on our Condensed Consolidated Balance Sheets at their original issuance value,net of unamortized deb

98、t discount and issuance costs.Investments in Non-Affiliated EntitiesOur investments in non-affiliated entities include non-marketable equity securities,which are primarily investments in privately held companies.In the secondquarter of fiscal year 2025,publicly-held equity securities from investment

99、s in non-affiliated entities were classified in marketable securities on our CondensedConsolidated Balance Sheets.Our non-marketable equity securities are recorded in long-term other assets on our Condensed Consolidated Balance Sheets and valued under themeasurement alternative.Gains and losses on t

100、hese investments,realized and unrealized,are recognized in Other income and expense,net on our CondensedConsolidated Statements of Income.14NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Adjustments to the carrying value of our non-market

101、able equity securities during the second quarter and first half of fiscal years 2025 and 2024 were as follows:Three Months EndedSix Months EndedJul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023(In millions)Balance at beginning of period$1,463$496$1,321$288 Adjustments related to non-marketable equity sec

102、urities:Net additions294 181 421 402 Unrealized gains77 92 Impairments and unrealized losses(15)(1)(15)(14)Balance at end of period$1,819$676$1,819$676 Non-marketable equity securities had cumulative gross unrealized gains of$362 million and cumulative gross losses and impairments of$60 million as o

103、f July28,2024.Note 8-Amortizable Intangible Assets and GoodwillThe components of our amortizable intangible assets are as follows:Jul 28,2024Jan 28,2024 GrossCarryingAmountAccumulatedAmortizationNet CarryingAmountGrossCarryingAmountAccumulatedAmortizationNet CarryingAmount(In millions)Acquisition-re

104、lated intangible assets$2,752$(1,976)$776$2,642$(1,720)$922 Patents and licensed technology442(266)176 449(259)190 Total intangible assets$3,194$(2,242)$952$3,091$(1,979)$1,112 For the second quarter and first half of fiscal year 2025,amortization expense associated with intangible assets was$146 mi

105、llion and$289 million,respectively.For the second quarter and first half of fiscal year 2024,amortization expense was$146 million and$327 million,respectively.The following table outlines the estimated amortization expense related to the net carrying amount of intangible assets as of July 28,2024:Fu

106、ture Amortization Expense(In millions)Fiscal Year:2025(excluding first half of fiscal year 2025)$295 2026304 2027192 202851 20299 2030 and thereafter101 Total$952 In the first half of fiscal year 2025,goodwill increased by$192 million from business combinations assigned to our Compute&Networking rep

107、orting unit.15NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Note 9-Balance Sheet Components Three customers accounted for 23%,15%,and 11%of our accounts receivable balance as of July 28,2024.Two customers accounted for 24%and 11%of ourac

108、counts receivable balance as of January 28,2024.Certain balance sheet components are as follows:Jul 28,2024Jan 28,2024Inventories:(In millions)Raw materials$1,895$1,719 Work in process2,111 1,505 Finished goods2,669 2,058 Total inventories(1)$6,675$5,282(1)During the second quarter of fiscal years 2

109、025 and 2024,we recorded an inventory provision of$345 million and$343 million,respectively and during the first half of fiscal years 2025 and 2024,werecorded an inventory provision of$555 million and$448 million,respectively,in cost of revenue.Jul 28,2024Jan 28,2024Other Assets(Long Term):(In milli

110、ons)Investments in non-affiliated entities$1,819$1,546 Prepaid supply and capacity agreements(1)1,313 2,458 Prepaid royalties352 364 Prepaid tax331 2 Other186 130 Total other assets$4,001$4,500(1)As of July 28,2024 and January 28,2024,there were$3.3 billion and$2.5 billion of short-term prepaid supp

111、ly and capacity agreements included in short term Prepaid expenses and other currentassets,respectively.Jul 28,2024Jan 28,2024Accrued and Other Current Liabilities:(In millions)Customer program accruals$3,584$2,081 Excess inventory purchase obligations(1)2,051 1,655 Taxes payable1,173 296 Deferred r

112、evenue(2)948 764 Accrued payroll and related expenses941 675 Product warranty and return provisions868 415 Operating leases250 228 Licenses and royalties154 182 Unsettled share repurchases130 187 Other190 199 Total accrued and other current liabilities$10,289$6,682(1)During the second quarter of fis

113、cal years 2025 and 2024,we recorded$563 million and$232 million,respectively and during the first half of fiscal years 2025 and 2024,we recorded$746 million and$261 million,respectively,in cost of revenue.(2)Deferred revenue includes customer advances and unearned revenue related to hardware support

114、,software support,cloud services,and license and development arrangements.The balance as ofJuly 28,2024 and January 28,2024 included$340 million and$233 million of customer advances,respectively.16NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unau

115、dited)Jul 28,2024Jan 28,2024Other Long-Term Liabilities:(In millions)Income tax payable(1)$1,670$1,361 Deferred revenue(2)773 573 Deferred income tax697 462 Other196 145 Total other long-term liabilities$3,336$2,541(1)Income tax payable is comprised of the long-term portion of the one-time transitio

116、n tax payable,unrecognized tax benefits,and related interest and penalties.(2)Deferred revenue includes unearned revenue related to hardware support and software support.Deferred RevenueThe following table shows the changes in short and long term deferred revenue during the first half of fiscal year

117、s 2025 and 2024:Six Months Ended Jul 28,2024Jul 30,2023(In millions)Balance at beginning of period$1,337$572 Deferred revenue additions1,478 713 Revenue recognized(1,094)(556)Balance at end of period$1,721$729 We recognized revenue of$323 million and$199 million for the first half of fiscal years 20

118、25 and 2024 respectively,that were included in the prior year enddeferred revenue balances.For revenue contracts with a length greater than one year,$1.3 billion is included in deferred revenue and$123 million has not yet been billed nor recognized asrevenue as of July 28,2024.Approximately 37%of th

119、is combined amount will be recognized as revenue over the next twelve months.Note 10-Derivative Financial InstrumentsWe entered into foreign currency forward contracts mitigating the impact of foreign currency exchange rate movements on our operating expenses.Thesecontracts are designated as cash fl

120、ow hedges.Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss andreclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur.We also entered into foreign currency forward contracts mitiga

121、ting the impact of foreign currency movements on monetary assets and liabilities.The change infair value of these non-designated contracts was recorded in other income or expense and offsets the change in fair value of the hedged foreign currencydenominated monetary assets and liabilities,which was

122、also recorded in other income or expense.The table below presents the notional value of our foreign currency contracts outstanding:Jul 28,2024Jan 28,2024(In millions)Designated as cash flow hedges$1,278$1,168 Non-designated hedges$894$597 The unrealized gains and losses or fair value of our foreign

123、currency contracts were not significant as of July 28,2024 and January 28,2024.As of July 28,2024,all designated foreign currency contracts mature within 18 months and the expected realized gains and losses were not significant.During the first half of fiscal years 2025 and 2024,the impact of deriva

124、tive financial instruments designated for cash flow hedges was not significant and theinstruments were determined to be highly effective.17NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Note 11-DebtLong-Term DebtExpectedRemaining Term(yea

125、rs)EffectiveInterest RateCarrying Value atJul 28,2024Jan 28,2024(In millions)0.584%Notes Due 2024(1)0.66%$1,250 3.20%Notes Due 20262.13.31%1,000 1,000 1.55%Notes Due 20283.91.64%1,250 1,250 2.85%Notes Due 20305.72.93%1,500 1,500 2.00%Notes Due 20316.92.09%1,250 1,250 3.50%Notes Due 204015.73.54%1,00

126、0 1,000 3.50%Notes Due 205025.73.54%2,000 2,000 3.70%Notes Due 206035.73.73%500 500 Unamortized debt discount and issuance costs(39)(41)Net carrying amount8,461 9,709 Less short-term portion(1,250)Total long-term portion$8,461$8,459(1)We repaid the 0.584%Notes Due 2024 in the second quarter of fisca

127、l year 2025.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 note

128、s are calendar year.As of July 28,2024,we complied with the required covenants,which are non-financial in nature,under the outstanding notes.Commercial PaperWe have a$575 million commercial paper program to support general corporate purposes.As of July 28,2024,we had no commercial paper outstanding.

129、Note 12-Commitments and ContingenciesPurchase ObligationsOur purchase obligations reflect our commitment to purchase components used to manufacture our products,including long-term supply and capacityagreements,certain software and technology licenses,other goods and services and long-lived assets.A

130、s of July 28,2024,we had outstanding inventory purchases and long-term supply and capacity obligations totaling$27.8 billion,an increase from the prior yeardue to commitments for Hopper and Blackwell capacity and components.We enter into agreements with contract manufacturers that allow them to proc

131、ureinventory based upon our defined criteria,and in certain instances,these agreements are cancellable,able to be rescheduled,and adjustable for our businessneeds prior to placing firm orders.Though,changes to these agreements may result in additional costs.Other non-inventory purchase obligations w

132、ere$12.0 billion,including$9.8 billion of multi-year cloud service agreements.We expect our cloud service agreements to be used to support our research anddevelopment efforts and our DGX Cloud offerings.18NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continu

133、ed)(Unaudited)Total future purchase commitments as of July 28,2024 are as follows:Commitments(In millions)Fiscal Year:2025(excluding first half of fiscal year 2025)$21,934 202610,671 20272,778 20282,436 20291,543 2030 and thereafter419 Total$39,781 Accrual for Product Warranty LiabilitiesThe estimat

134、ed amount of product warranty liabilities was$741 million and$306 million as of July 28,2024 and January 28,2024,respectively.The estimatedproduct returns and product warranty activity consisted of the following:Three Months EndedSix Months EndedJul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023(In millio

135、ns)Balance at beginning of period$532$77$306$82 Additions237 42 471 55 Utilization(28)(4)(36)(22)Balance at end of period$741$115$741$115 We have provided indemnities for matters such as tax,product,and employee liabilities.We have included intellectual property indemnification provisions in ourtech

136、nology-related agreements with third parties.Maximum potential future payments cannot be estimated because many of these agreements do not have amaximum stated liability.We have not recorded any liability in our Condensed Consolidated Financial Statements for such indemnifications.LitigationSecuriti

137、es Class Action and Derivative LawsuitsThe 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 Courtfor the Northern District of California,and titled In Re NVIDIA Corporation Securities Litigation,f

138、iled an amended complaint on May 13,2020.The amendedcomplaint 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 inven

139、tory and the impact of cryptocurrency mining on GPU demandbetween May 10,2017 and November 14,2018.Plaintiffs also alleged that the NVIDIA executives who they named as defendants violated Section 20(a)of theExchange Act.Plaintiffs sought class certification,an award of unspecified compensatory damag

140、es,an award of reasonable costs and expenses,includingattorneys fees and expert fees,and further relief as the Court may deem just and proper.On March 2,2021,the district court granted NVIDIAs motion todismiss the complaint without leave to amend,entered judgment in favor of NVIDIA and closed the ca

141、se.On March 30,2021,plaintiffs filed an appeal fromjudgment 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 panelaffirmed in part and reversed in part the district courts dismissal of the case,with a third j

142、udge dissenting on the basis that the district court did not err indismissing the case.On November 15,2023,the Ninth Circuit denied NVIDIAs petition for rehearing en banc of the Ninth Circuit panels majority decision toreverse in part the dismissal of the case,which NVIDIA had filed on October 10,20

143、23.On November 21,2023,NVIDIA filed a motion with the Ninth Circuit for astay of the mandate pending NVIDIAs petition for a writ of certiorari in the Supreme Court of the United States and the Supreme Courts resolution of the matter.On December 5,2023,the Ninth Circuit granted NVIDIAs motion to stay

144、 the mandate.NVIDIA filed a petition for a writ of certiorari on March 4,2024.On June17,2024,the Supreme Court of the United States granted NVIDIAs petition for a writ of certiorari.Four amicus briefs were filed in support of NVIDIAs petition.Oral arguments are scheduled for November 13,2024.19NVIDI

145、A Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)The putative derivative lawsuit pending in the United States District Court for the Northern District of California,captioned 4:19-cv-00341-HSG,initially filedJanuary 18,2019 and titled In re NVID

146、IA Corporation Consolidated Derivative Litigation,was stayed pending resolution of the plaintiffs appeal in the In ReNVIDIA Corporation Securities Litigation action.On February 22,2022,the court administratively closed the case,but stated that it would reopen the case oncethe appeal in the In Re NVI

147、DIA Corporation Securities Litigation action is resolved.The stay remains in place.The lawsuit asserts claims,purportedly on behalfof us,against certain officers and directors of the Company for breach of fiduciary duty,unjust enrichment,waste of corporate assets,and violations of Sections14(a),10(b

148、),and 20(a)of the Exchange Act based on the dissemination of allegedly false and misleading statements related to channel inventory and the impactof cryptocurrency mining on GPU demand.The plaintiffs are seeking unspecified damages and other relief,including reforms and improvements to NVIDIAscorpor

149、ate 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,etal.(Case No.1:19-cv-01795-UNA)and Nelson v.Huang,et.al.(Case No.1:19-cv-01798-UNA),remain stayed pe

150、nding resolution of the plaintiffs appeal in theIn Re NVIDIA Corporation Securities Litigation action.The lawsuits assert claims,purportedly on behalf of us,against certain officers and directors of theCompany for breach of fiduciary duty,unjust enrichment,insider trading,misappropriation of informa

151、tion,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 ofcryptocurrency mining on GPU demand.The plaintiffs seek unspecified damages and other relief,

152、including disgorgement of profits from the sale of NVIDIA stockand 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

153、 claims,purportedly on behalf of us,against certain officers and directors of the Company for breach of fiduciary duty andinsider trading based on the dissemination of allegedly false and misleading statements related to channel inventory and the impact of cryptocurrency mining onGPU demand.The plai

154、ntiffs seek unspecified damages and other relief,including disgorgement of profits from the sale of NVIDIA stock and reform ofunspecified corporate governance measures.This derivative matter is stayed pending the final resolution of In Re NVIDIA Corporation Securities Litigationaction.Accounting for

155、 Loss ContingenciesAs of July 28,2024,there are no accrued contingent liabilities associated with the legal proceedings described above based on our belief that liabilities,whilepossible,are not probable.Further,except as described above,any possible loss or range of loss in these matters cannot be

156、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,webelieve that the ultimate outcome of these actions will not have a material adverse effect on our operating res

157、ults,liquidity or financial position.Note 13-Shareholders Equity Capital Return Program During the second quarter and first half of fiscal year 2025,we repurchased 62.8 million and 162.1 million shares of our common stock for$7.0 billion and$15.1billion,respectively.During the second quarter and fir

158、st half of fiscal year 2024,we repurchased 75.5 million shares of our common stock for$3.3 billion.As ofJuly 28,2024,we were authorized,subject to certain specifications,to repurchase up to$7.5 billion of our common stock.On August 26,2024,our Board ofDirectors approved an additional$50.0 billion to

159、 our share repurchase authorization,without expiration.As of August 26,2024,a total of$53.9 billion wasavailable for repurchase.Our share repurchase program aims to offset dilution from shares issued to employees while maintaining adequate liquidity to meet ouroperating requirements.We may pursue ad

160、ditional share repurchases as we weigh market factors and other investment opportunities.From July 29,2024 through August 26,2024,we repurchased 31.5 million shares for$3.6 billion pursuant to a Rule 10b5-1 trading plan.On June 7,2024,we increased our quarterly cash dividend to$0.01 per share on a p

161、ost-Stock Split basis to all shareholders of record on June 11,2024.Ourquarterly cash dividend was paid on June 28,2024.During the second quarter and first half of fiscal year 2025,we paid$246 million and$344 million in cash dividends,respectively.During the second quarter andfirst half of fiscal ye

162、ar 2024,we paid$99 million and$199 million in cash dividends to our shareholders,respectively.Our cash dividend program and thepayment of future cash dividends under that program are subject to our Board of Directors continuing determination that the dividend program and thedeclaration of dividends

163、thereunder are in the best interests of our shareholders.20NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Note 14-Segment InformationOur Chief Executive Officer is our chief operating decision maker,or CODM,and reviews financial informati

164、on presented on an operating segment basis forpurposes of making decisions and assessing financial performance.The Compute&Networking segment includes our Data Center accelerated computing platforms and artificial intelligence,or AI,solutions and software;networking;automotive platforms and autonomo

165、us and electric vehicle solutions;Jetson for robotics and other embedded platforms;and DGX Cloud computingservices.The Graphics segment includes GeForce GPUs for gaming and PCs,the GeForce NOW game streaming service and related infrastructure,and solutions forgaming platforms;Quadro/NVIDIA RTX GPUs

166、for enterprise workstation graphics;virtual GPU software for cloud-based visual and virtual computing;automotiveplatforms for infotainment systems;and Omniverse Enterprise software for building and operating 3D internet applications.Operating results by segment include costs or expenses directly att

167、ributable to each segment,and costs or expenses that are leveraged across our unifiedarchitecture 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 operatingdecis

168、ions 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 inform

169、ation regarding total assets on a reportable segment basis.Depreciation and amortization expenses directly attributableto each reportable segment are included in operating results for each segment.However,our CODM does not evaluate depreciation and amortization expenseby operating segment and,theref

170、ore,it is not separately presented.The accounting policies for segment reporting are the same as for our consolidated financialstatements.The table below presents details of our reportable segments and the“All Other”category.Compute&NetworkingGraphicsAll OtherConsolidated(In millions)Three Months En

171、ded Jul 28,2024 Revenue$26,446$3,594$30,040 Operating income(loss)$18,848$1,369$(1,575)$18,642 Three Months Ended Jul 30,2023 Revenue$10,402$3,105$13,507 Operating income(loss)$6,728$1,211$(1,139)$6,800 Six Months Ended Jul 28,2024Revenue$49,121$6,963$56,084 Operating income(loss)$35,896$2,609$(2,95

172、4)$35,551 Six Months Ended Jul 30,2023Revenue$14,862$5,837$20,699 Operating income(loss)$8,887$2,258$(2,204)$8,941 21NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)Three Months EndedSix Months EndedJul 28,2024Jul 30,2023Jul 28,2024Jul 30,

173、2023(In millions)Reconciling items included in All Other category:Stock-based compensation expense$(1,154)$(842)$(2,164)$(1,576)Unallocated cost of revenue and operating expenses(280)(163)(508)(317)Acquisition-related and other costs(144)(137)(286)(311)Other3 3 4 Total$(1,575)$(1,139)$(2,954)$(2,204

174、)Revenue by geographic areas is based upon the billing location of the customer.The end customer and shipping location may be different from our customersbilling location.For example,most shipments associated with Singapore revenue were to locations other than Singapore and shipments to Singapore we

175、reinsignificant.Revenue by geographic areas was as follows:Three Months EndedSix Months Ended Jul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023(In millions)Revenue:United States$13,022$6,043$26,518$8,428 Taiwan5,740 2,839 10,113 4,635 Singapore5,622 1,042 9,659 1,804 China(including Hong Kong)3,667 2,740

176、 6,158 4,330 Other countries1,989 843 3,636 1,502 Total revenue$30,040$13,507$56,084$20,699 We refer to customers who purchase products directly from NVIDIA as direct customers,such as add-in board manufacturers,distributors,original devicemanufacturers,or ODMs,original equipment manufacturers,or OE

177、Ms,and system integrators.We have certain customers that may purchase products directlyfrom NVIDIA and may use either internal resources or third-party system integrators to complete their build.We also have indirect customers,who purchaseproducts through our direct customers;indirect customers incl

178、ude cloud service providers,consumer internet companies,enterprises,and public sector entities.Sales to direct customers which represented 10%or more of total revenue,all of which were primarily attributable to the Compute&Networking segment,arepresented in the following table:Three Months EndedSix

179、Months Ended Jul 28,2024Jul 28,2024Customer A14%14%Customer B11%*Customer C11%*Customer D10%10%Customer E*10%*Less than 10%of total revenueOne customer represented approximately 17%and 13%of total revenue for the second quarter and first half of fiscal year 2024,respectively,and wasattributable to t

180、he Compute&Networking segment.22NVIDIA Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements(Continued)(Unaudited)The following table summarizes revenue by specialized markets:Three Months EndedSix Months Ended Jul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023(In millions)Reven

181、ue:Data Center$26,272$10,323$48,835$14,607 Compute22,604 8,612 41,996 11,969 Networking3,668 1,711 6,839 2,638 Gaming2,880 2,486 5,527 4,726 Professional Visualization454 379 881 674 Automotive346 253 675 549 OEM and Other88 66 166 143 Total revenue$30,040$13,507$56,084$20,699 23Item 2.Managements D

182、iscussion and Analysis of Financial Condition and Results of OperationsForward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements based on managements beliefs and assumptions and on information currentlyavailable to management.In some cases,you can identify for

183、ward-looking statements by terms such as“may,”“will,”“should,”“could,”“goal,”“would,”“expect,”“plan,”“anticipate,”“believe,”“estimate,”“project,”“predict,”“potential”and similar expressions intended to identify forward-looking statements.Thesestatements involve known and unknown risks,uncertainties

184、and other factors,which may cause our actual results,performance,time frames or achievements tobe materially different from any future results,performance,time frames or achievements expressed or implied by the forward-looking statements.We discussmany of these risks,uncertainties and other factors

185、in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year endedJanuary 28,2024 in greater detail under the heading“Risk Factors”of such reports.Given these risks,uncertainties,and other factors,you should not placeundue reliance on these forward-looking statements.

186、Also,these forward-looking statements represent our estimates and assumptions only as of the date of thisfiling.You should read this Quarterly Report on Form 10-Q completely and understand that our actual future results may be materially different from what weexpect.We hereby qualify our forward-loo

187、king statements by these cautionary statements.Except as required by law,we assume no obligation to update theseforward-looking statements publicly,or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements,even if new information becom

188、es available in the future.All references to“NVIDIA,”“we,”“us,”“our”or the“Company”mean NVIDIA Corporation and its subsidiaries.2024 NVIDIA Corporation.All rights reserved.The following discussion and analysis of our financial condition and results of operations should be read in conjunction with th

189、e risk factors set forth in Item 1A.“Risk Factors”of our Annual Report on Form 10-K for the fiscal year ended January 28,2024 and Part II,Item 1A.“Risk Factors”of this Quarterly Report onForm 10-Q and our Condensed Consolidated Financial Statements and related Notes thereto,as well as other cautiona

190、ry statements and risks describedelsewhere in this Quarterly Report on Form 10-Q and our other filings with the SEC,before deciding to purchase,hold,or sell shares of our common stock.OverviewOur Company and Our BusinessesNVIDIA pioneered accelerated computing to help solve the most challenging comp

191、utational problems.Since our original focus on PC graphics,we haveexpanded to several other large and important computationally intensive fields.Fueled by the sustained demand for exceptional 3D graphics and the scale of thegaming market,NVIDIA has leveraged its GPU architecture to create platforms

192、for scientific computing,AI,data science,autonomous vehicles,robotics,and 3Dinternet applications.Our two operating segments are Compute&Networking and Graphics,as described in Note 14 of the Notes to CondensedConsolidated Financial Statements in Part I,Item 1 of this Quarterly Report on Form 10-Q.H

193、eadquartered in Santa Clara,California,NVIDIA was incorporated in California in April 1993 and reincorporated in Delaware in April 1998.Recent Developments,Future Objectives and ChallengesDemand and SupplyRevenue growth in the second quarter of fiscal year 2025 was driven by data center compute plat

194、forms and networking for accelerated computing and AIsolutions.Hopper architecture demand is strong,and shipments are expected to increase in the second half of fiscal 2025.We shipped customer samples of ourBlackwell architecture in the second quarter.We executed a change to the Blackwell GPU mask t

195、o improve production yield.Blackwell production ramp isscheduled to begin in the fourth quarter and continue into fiscal year 2026.In the fourth quarter of fiscal year 2025,we expect to ship several billion dollars inBlackwell revenue.Demand estimates for our new products,applications,and services c

196、an be incorrect and create volatility in our revenue or supply levels.We may not be able togenerate significant revenue from them.Recent technologies,such as generative AI models,have emerged,and while they have driven increased demand forData Center,the long-term trajectory is unknown.We continue t

197、o increase our supply and capacity purchases with existing and new suppliers to support our demand projections.With these additions,we havealso entered and may continue to enter into prepaid manufacturing and capacity agreements to supply both current and future products.The increased purchasevolume

198、s and integration of new suppliers and contract manufacturers into our supply chain may create more complexity in managing multiple suppliers withvariations in production planning,execution and logistics.Our expanding product portfolio and varying component compatibility and quality may lead toincre

199、ased inventory levels.We have incurred and may in the future incur inventory24provisions or impairments if our inventory or supply or capacity commitments exceed demand for our products or demand declines.Product Transitions and New Product IntroductionsProduct transitions are complex and we often s

200、hip both new and prior architecture products simultaneously as our channel partners prepare to ship and supportnew products.We may be in various stages of transitioning the architectures of our Data Center,Gaming,Professional Visualization and Automotive products.The computing industry is experienci

201、ng a broader and faster launch cadence of accelerated computing platforms to meet a growing and diverse set of AIopportunities.We have introduced a new cadence of our Data Center architectures where we seek to complete a new GPU computing architecture each yearand we are providing a greater variety

202、of Data Center offerings.The increased frequency of these transitions and the larger number of products and productconfigurations may magnify the challenges associated with managing our supply and demand which may create volatility in our revenue.The increasedfrequency and complexity of newly introd

203、uced products could result in quality or production issues that could increase inventory provisions,warranty,or othercosts or result in product delays.We incur significant engineering development resources for new products,and changes to our product roadmap may impactour ability to develop other pro

204、ducts or adequately manage our supply chain cost.Customers may delay purchasing existing products as we increase thefrequency of new products or may not be able to adopt our new products as fast as forecasted,both impacting the timing of our revenue and supply chain cost.While we have managed prior

205、product transitions and have sold multiple product architectures at the same time,these transitions are difficult,may impair ourability to predict demand and impact our supply mix,and may cause us to incur additional costs.For example,we executed a change to the Blackwell GPUmask to improve producti

206、on yield.Our gross margins in the second quarter of fiscal year 2025 were negatively impacted by inventory provisions for low-yieldingBlackwell material and they may continue to be impacted in the future.Global TradeIn August 2022,the U.S.government,or the USG,announced licensing requirements that,w

207、ith certain exceptions,impact exports to China(including HongKong and Macau)and Russia of our A100 and H100 integrated circuits,DGX or any other systems or boards which incorporate A100 or H100 integrated circuits.In July 2023,the USG informed us of an additional licensing requirement for a subset o

208、f A100 and H100 products destined to certain customers and otherregions,including some countries in the Middle East.In October 2023,the USG announced new and updated licensing requirements that became effective in our fourth quarter of fiscal year 2024 for exports toChina and Country Groups D1,D4,an

209、d D5(including but not limited to Saudi Arabia,the United Arab Emirates,and Vietnam,but excluding Israel)of ourproducts exceeding certain performance thresholds,including A100,A800,H100,H800,L4,L40,L40S and RTX 4090.The licensing requirements also apply tothe export of products exceeding certain per

210、formance thresholds to a party headquartered in,or with an ultimate parent headquartered in,Country Group D5,including China.On October 23,2023,the USG informed us the licensing requirements were effective immediately for shipments of our A100,A800,H100,H800,and L40S products.We have not received li

211、censes to ship these restricted products to China.Additionally,partners and customers have experienceddelays in receiving licenses or have not received a license to ship these restricted products.We expanded our Data Center product portfolio to offer new solutions,including those for which the USG d

212、oes not require a license or advance notice beforeeach shipment.We ramped new products designed specifically for China that do not require an export control license.Our Data Center revenue in China grewsequentially in the second quarter of fiscal year 2025 and is a significant contributor to our Dat

213、a Center revenue.As a percentage of total Data Center revenue,itremains below levels seen prior to the imposition of export controls in October 2023.To the extent that a customer requires products covered by the licensingrequirements,we may seek a license for the customer but have no assurance that

214、the USG will grant such a license,or that the USG will act on the licenseapplication in a timely manner or at all.Our competitive position has been harmed,and our competitive position and future results may be further harmed in the long term,if there are further changes inthe USGs export controls.Gi

215、ven the increasing strategic importance of AI and rising geopolitical tensions,the USG has changed and may again change theexport control rules at any time and further subject a wider range of our products to export restrictions and licensing requirements,negatively impacting ourbusiness and financi

216、al results.In the event of such change,we may be unable to sell our inventory of such products and may be unable to develop replacementproducts not subject to the licensing requirements,effectively excluding us from all or part of the China market,as well as other impacted markets,including theMiddl

217、e East.While we work to enhance the resiliency and redundancy of our supply chain,which is currently concentrated in the Asia-Pacific region,new and existing exportcontrols or changes to existing export controls could limit alternative manufacturing locations and negatively impact our business.Refer

218、 to“Item 1A.RiskFactors”for a discussion of this potential impact.25Macroeconomic FactorsMacroeconomic factors,includinginflation,interest rate changes,capital market volatility,global supply chain constraints and global economic and geopoliticaldevelopments,may have direct and indirect impacts on o

219、ur results of operations,particularly demand for our products.While difficult to isolate and quantify,these macroeconomic factors can also impact our supply chain and manufacturing costs,employee wages,costs for capital equipment and value of ourinvestments.Our product and solution pricing generally

220、 does not fluctuate with short-term changes in our costs.Within our supply chain,we continuouslymanage product availability and costs with our vendors.Israel and Regional ConflictsWe are monitoring the impact of the geopolitical conflict in and around Israel on our operations,including the health an

221、d safety of our approximately 4,000employees in the region who primarily support the research and development,operations,and sales and marketing of our networking products.Our globalsupply chain for our networking products has not experienced any significant impact.A substantial number of our employ

222、ees in the region have been called-upfor active military duty in Israel.Some employees in Israel have been on active military duty for an extended period and may continue to be absent,which maycause disruption to our product development or operations.We have not experienced significant impact or exp

223、ense to our business;however,if the conflict isfurther extended,it could impact future product development,operations,and revenue or create other uncertainty for our business.Second Quarter of Fiscal Year 2025 SummaryThree Months EndedQuarter-over-QuarterChangeYear-over-YearChange Jul 28,2024Apr 28,

224、2024Jul 30,2023($in millions,except per share data)Revenue$30,040$26,044$13,507 15%122%Gross margin75.1%78.4%70.1%(3.3)pts5.0 ptsOperating expenses$3,932$3,497$2,662 12%48%Operating income$18,642$16,909$6,800 10%174%Net income$16,599$14,881$6,188 12%168%Net income per diluted share$0.67$0.60$0.25 12

225、%168%We specialize in markets where our computing platforms can provide tremendous acceleration for applications.These platforms incorporate processors,interconnects,software,algorithms,systems and services to deliver unique value.Our platforms address four large markets where our expertise is criti

226、cal:DataCenter,Gaming,Professional Visualization,and Automotive.Revenue was$30.0 billion,up 122%from a year ago and up 15%sequentially.Data Center revenue was up 154%from a year ago and up 16%sequentially.The strong sequential and year-on-year growth was driven by demand for ourHopper GPU computing

227、platform for training and inferencing of large language models,recommendation engines,and generative AI applications.Sequentialgrowth was driven by consumer internet and enterprise companies.Cloud service providers represented roughly 45%of our Data Center revenue,and morethan 50%stemmed from consum

228、er internet and enterprise companies.Strong year-on-year growth was driven by all customer types from both compute andnetworking revenue.Customers continue to accelerate their Hopper architecture purchases while gearing up to adopt Blackwell.Data Center compute revenuewas$22.6 billion,up 162%from a

229、year ago and up 17%sequentially.Networking revenue was$3.7 billion,up 114%from a year ago driven by InfiniBand andEthernet for AI revenue,which includes Spectrum-X end-to-end ethernet platform.Networking revenue sequentially was up 16%and includes a doubling ofEthernet for AI revenue.We shipped cust

230、omer samples of our Blackwell architecture in the second quarter.We executed a change to the Blackwell GPU mask to improve productionyield.Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal year 2026.In the fourth quarter of fiscal year 2025,we expectto sh

231、ip several billion dollars in Blackwell revenue.Hopper demand is strong,and shipments are expected to increase in the second half of fiscal year 2025.Gaming revenue was up 16%from a year ago and up 9%sequentially.These increases reflect higher sales of our GeForce RTX 40 Series GPUs and gameconsole

232、SOCs.We had solid demand in the second quarter for our gaming GPUs as part of the back-to-school season.Professional Visualization revenue was up 20%from a year ago and up 6%sequentially.These increases were driven by the continued ramp of RTX GPUworkstations based on our Ada architecture.26Automoti

233、ve revenue was up 37%from a year ago and up 5%sequentially.These increases were driven by AI Cockpit solutions and self-driving platforms.Gross margin increased from a year ago on strong Data Center revenue growth primarily driven by our Hopper GPU computing platform.Sequentially,grossmargin decreas

234、ed primarily driven by inventory provisions for low-yielding Blackwell material and a higher mix of new products within Data Center.Operating expenses were up 48%from a year ago and up 12%sequentially,largely driven by compensation and benefits,reflecting growth in employees andcompensation.Market P

235、latform HighlightsData Center revenue for the second quarter of fiscal year 2025 was$26.3 billion,up 16%from the previous quarter and up 154%from a year ago.We unveiledan array of NVIDIA Blackwell-powered systems featuring NVIDIA Grace CPUs,networking and infrastructure from top manufacturers.We ann

236、ounced broadadoption of the NVIDIA Spectrum-X Ethernet networking platform by cloud service providers,GPU cloud providers and enterprises,as well as partnersincorporating it into their offerings.We released NVIDIA Inference Microservices,or NIM,for broad availability to developers globally and unvei

237、led that more than150 companies are integrating NIM into their platforms to speed generative AI application development.We introduced an NVIDIA AI Foundry service and NIMinference microservices to accelerate generative AI for the worlds enterprises with the Llama 3.1 collection of models.We announce

238、d that the combination ofNVIDIA H200 and NVIDIA Blackwell architecture B200 processors swept the latest industry-standard MLPerf results for inference.We also unveiled an array ofBlackwell systems featuring NVIDIA Grace CPUs,networking and infrastructure.Over the trailing four quarters,we estimate t

239、hat inference drove over 40%ofour Data Center revenue.Gaming revenue for the second quarter of fiscal year 2025 was$2.9 billion,up 9%from the previous quarter and up 16%from a year ago.We announcedNVIDIA ACE generative AI microservices are in early access for RTX AI PCs.We announced new RTX and DLSS

240、 titles bringing the total number of RTX gamesand apps to over 600.We surpassed 2,000 games on GeForce NOW and expanded the service into Japan.Professional Visualization revenue for the second quarter of fiscal year 2025 was$454 million,up 6%from the previous quarter and up 20%from a year ago.We int

241、roduced generative AI models and NIM microservices for OpenUSD;and announced major Taiwanese electronics makers are creating more autonomousfactories with a new reference workflow that combines NVIDIA Metropolis vision AI,NVIDIA Omniverse simulation and NVIDIA Isaac AI robot development.Automotive r

242、evenue for the second quarter of fiscal year 2025 was$346 million,up 5%from the previous quarter and up 37%from a year ago.At the ComputerVision and Pattern Recognition conference,NVIDIA won the Autonomous Grand Challenge in the End-to-End Driving at Scale category,highlighting theimportance of gene

243、rative AI in building applications for physical AI deployments in autonomous vehicle development.Financial Information by Business Segment and Geographic DataRefer to Note 14 of the Notes to the Condensed Consolidated Financial Statements for disclosure regarding segment information.Critical Account

244、ing Policies and EstimatesRefer to Part II,Item 7,Critical Accounting Policies and Estimates of our Annual Report on Form 10-K for the fiscal year ended January 28,2024.There havebeen no material changes to our Critical Accounting Policies and Estimates.27Results of OperationsThe following table set

245、s forth,for the periods indicated,certain items in our Condensed Consolidated Statements of Income expressed as a percentage ofrevenue.Three Months EndedSix Months Ended Jul 28,2024Jul 30,2023Jul 28,2024Jul 30,2023Revenue100.0%100.0%100.0%100.0%Cost of revenue24.9 29.9 23.4 31.8 Gross profit75.1 70.

246、1 76.6 68.2 Operating expenses Research and development10.3 15.1 10.4 18.9 Sales,general and administrative2.8 4.7 2.9 6.1 Total operating expenses13.1 19.8 13.3 25.0 Operating income62.0 50.3 63.3 43.2 Interest income1.5 1.4 1.4 1.6 Interest expense(0.2)(0.5)(0.2)(0.6)Other,net0.6 0.4 0.5 0.2 Other

247、 income(expense),net1.9 1.3 1.7 1.2 Income before income tax63.9 51.6 65.0 44.4 Income tax expense8.7 5.9 8.9 4.6 Net income55.2%45.7%56.1%39.8%RevenueRevenue by Reportable SegmentsThree Months EndedSix Months Ended Jul 28,2024Jul 30,2023$Change%ChangeJul 28,2024Jul 30,2023$Change%Change($in million

248、s)Compute&Networking$26,446$10,402$16,044 154%$49,121$14,862$34,259 231%Graphics3,594 3,105 489 16%6,963 5,837 1,126 19%Total$30,040$13,507$16,533 122%$56,084$20,699$35,385 171%Operating Income by Reportable SegmentsThree Months EndedSix Months Ended Jul 28,2024Jul 30,2023$Change%ChangeJul 28,2024Ju

249、l 30,2023$Change%Change($in millions)Compute&Networking$18,848$6,728$12,120 180%$35,896$8,887$27,009 304%Graphics1,369 1,211 158 13%$2,609 2,258 351 16%All Other(1,575)(1,139)(436)38%$(2,954)(2,204)(750)34%Total$18,642$6,800$11,842 174%$35,551$8,941$26,610 298%Compute&Networking revenue The increase

250、 in the second quarter and first half of fiscal year 2025 compared to the second quarter and first half of fiscal year2024 was due to strength in Data Center computing and networking for accelerated computing and AI solutions.Revenue from GPU computing grew 166%year-on-year and 257%compared to the f

251、irst half of fiscal year 2024,was driven by demand for our Hopper GPU architecture computing platform for training andinferencing of large language models,recommendation engines,and generative AI applications.Networking was also up 114%year-on-year and 159%compared to the first half of last year dri

252、ven by both InfiniBand and Ethernet for AI revenue.28Graphics revenue The increase in the second quarter and first half of fiscal year 2025 compared to the second quarter and first half of fiscal year 2024 was ledby higher sales of our GeForce RTX 40 Series GPUs.Reportable segment operating income T

253、he increase in the second quarter and first half of fiscal year 2025 compared to the second quarter and first half offiscal year 2024 in Compute&Networking and Graphics operating income was driven by higher revenue.All Other operating loss The increase in the second quarter and first half of fiscal

254、year 2025 compared to the second quarter and first half of fiscal year 2024was due to an increase in stock-based compensation expense reflecting employee growth and compensation increases.Concentration of RevenueRevenue by geographic region is designated based on the billing location even if the rev

255、enue may be attributable to end customers,such as enterprises andgamers in a different location.Revenue from sales to customers outside of the United States accounted for 57%and 53%of total revenue for the second quarterand first half of fiscal year 2025,respectively,and 55%and 59%of total revenue f

256、or the second quarter and first half of fiscal year 2024,respectively.We refer to customers who purchase products directly from NVIDIA as direct customers,such as add-in board manufacturers,distributors,ODMs,OEMs,andsystem integrators.We have certain customers that may purchase products directly fro

257、m NVIDIA and may use either internal resources or third-party systemintegrators to complete their build.We also have indirect customers,who purchase products through our direct customers;indirect customers include cloudservice providers,consumer internet companies,enterprises,and public sector entit

258、ies.Sales to direct customers which represented 10%or more of total revenue,all of which were primarily attributable to the Compute&Networking segment,arepresented in the following table:Three Months EndedSix Months Ended Jul 28,2024Jul 28,2024Customer A14%14%Customer B11%*Customer C11%*Customer D10

259、%10%Customer E*10%*Less than 10%of total revenueFor the second quarter of fiscal year 2025,two indirect customers which primarily purchase our products through system integrators and distributors,includingthrough Customer B and Customer E,are estimated to each represent 10%or more of total revenue a

260、ttributable to the Compute&Networking segment.For the first half of fiscal year 2025,an indirect customer which primarily purchases our products from system integrators and distributors,including fromCustomer E,is estimated to represent 10%or more of total revenue,attributable to the Compute&Network

261、ing segment.Indirect customer revenue is an estimation based upon multiple factors including customer purchase order information,product specifications,internal sales dataand other sources.Actual indirect customer revenue may differ from our estimates.We have experienced periods where we receive a s

262、ignificant amount of our revenue from a limited number of customers,and this trend may continue.Gross Profit and Gross MarginGross profit consists of total net revenue less cost of revenue.Our overall gross margin increased to 75.1%and 76.6%for the second quarter and first half of fiscal year 2025,r

263、espectively,from 70.1%and 68.2%for thesecond quarter and first half of fiscal year 2024,respectively.The increases in the second quarter and first half of fiscal year 2025 compared to the secondquarter and first half of fiscal year 2024 were primarily due to strong Data Center revenue growth of 154%

264、and 234%for the second quarter and first half of2025,respectively.Provisions for inventory and excess inventory purchase obligations totaled$908 million and$1.3 billion for the second quarter and first half of fiscal year 2025,respectively,and were primarily due to low-yielding Blackwell material.Sa

265、les of previously reserved inventory and settlements of excess inventory purchaseobligations resulted in a provision release of$85 million and$199 million for the second quarter and first half of fiscal year 2025,respectively.The net effect onour29gross margin was an unfavorable impact of 2.7%and 2.

266、0%in the second quarter and first half of fiscal year 2025,respectively.Provisions for inventory and excess inventory purchase obligations totaled$576 million and$709 million for the second quarter and first half of fiscal year 2024,respectively.Sales of previously reserved inventory and settlements

267、 of excess inventory purchase obligations resulted in a provision release of$84 million and$134 million for the second quarter and first half of fiscal year 2024,respectively.The net effect on our gross margin was an unfavorable impact of 3.6%and2.8%in the second quarter and first half of fiscal yea

268、r 2024,respectively.We expect our Data Center mix to continue to shift to new products in the second half of fiscal year 2025.For fiscal year 2025,we expect gross margins to be inthe mid-70%range.Operating Expenses Three Months EndedSix Months Ended Jul 28,2024Jul 30,2023$Change%ChangeJul 28,2024Jul

269、 30,2023$Change%Change($in millions)Research and developmentexpenses$3,090$2,040$1,050 51%$5,810$3,916$1,894 48%of net revenue10.3%15.1%10.4%18.9%Sales,general and administrativeexpenses842 622 220 35%1,618 1,253 365 29%of net revenue2.8%4.7%2.9%6.1%Total operating expenses$3,932$2,662$1,270 48%$7,4

270、28$5,169$2,259 44%of net revenue13.1%19.8%13.3%25.0%The increases in research and development expenses for the second quarter and first half of fiscal year 2025 were driven by 35%and 34%increase incompensation and benefits,including stock-based compensation,reflecting employee growth and compensatio

271、n increases,and 118%and 117%increase incompute and infrastructure investments,respectively.The increases in sales,general and administrative expenses for the second quarter and first half of fiscal year 2025 was primarily driven by compensation andbenefits,including stock-based compensation,reflecti

272、ng employee growth and compensation increases.For fiscal year 2025,we expect operating expenses to grow in the mid to upper 40%range as we work on developing our next generation of products.Other Income(Expense),NetThree Months EndedSix Months Ended Jul 28,2024Jul 30,2023$ChangeJul 28,2024Jul 30,202

273、3$Change($in millions)Interest income$444$187$257$803$338$465 Interest expense(61)(65)4(125)(131)6 Other,net189 59 130 264 42 222 Other income(expense),net$572$181$391$942$249$693 The increases in interest income for the second quarter and first half of fiscal year 2025 was due to higher cash,cash e

274、quivalents,and publicly-held debtsecurity balances.Interest expense is comprised of coupon interest and debt discount amortization related to our notes.Other,net consists of realized or unrealized gains and losses from investments in privately-held equity securities,publicly-held equity securities,a

275、nd the impactof changes in foreign currency rates.The change in Other,net,compared to the second quarter and first half of fiscal year 2024 was primarily driven by anincrease in fair value of our privately-held and publicly-held equity securities.Refer to Note 6 and 7 of the Notes to Condensed Conso

276、lidated FinancialStatements in Part I,Item 1 of this Quarterly Report on Form 10-Q for additional information regarding our investments in privately-held and publicly-held equitysecurities.30Income TaxesWe recognized income tax expense of$2.6 billion and$5.0 billion for the second quarter and first

277、half of fiscal year 2025,respectively,and$793 million and$958 million for the second quarter and first half of fiscal year 2024,respectively.Income tax expense as a percentage of income before income tax was 13.6%and 13.7%for the second quarter and first half of fiscal year 2025,respectively,and 11.

278、4%and 10.4%for the second quarter and first half of fiscal year 2024,respectively.The effective tax rate increased primarily due to a lower percentage of tax benefits from the foreign-derived intangible income deduction relative to the increasein income before income tax.Given our current and antici

279、pated future earnings,we believe that we may release the valuation allowance associated with certain state deferred tax assets inthe near term,which would decrease our income tax expense for the period the release is recorded.The timing and amount of the valuation allowance releasecould vary based o

280、n our assessment of all available evidence.Refer to Note 5 of the Notes to Condensed Consolidated Financial Statements in Part I,Item 1 of this Quarterly Report on Form 10-Q for additional information.Liquidity and Capital Resources Jul 28,2024Jan 28,2024(In millions)Cash and cash equivalents$8,563$

281、7,280 Marketable securities26,237 18,704 Cash,cash equivalents and marketable securities$34,800$25,984 Six Months EndedJul 28,2024Jul 30,2023(In millions)Net cash provided by operating activities$29,833$9,259 Net cash used in investing activities$(8,877)$(1,287)Net cash used in financing activities$

282、(19,665)$(5,479)Our investment policy requires the purchase of high-rated fixed income securities,the diversification of investment types and credit exposures,and certainmaturity limits on our portfolio.Cash provided by operating activities increased in the first half of fiscal year 2025 compared to

283、 the first half of fiscal year 2024 due to growth in revenue,partiallyoffset by higher tax payments.Our accounts receivable balance at the end of the first half of fiscal year 2025 reflects the strong revenue growth,partially offsetby$2.8 billion from customer payments received prior to the invoice

284、due date.Cash used in investing activities increased in the first half of fiscal year 2025 compared to the first half of fiscal year 2024,primarily driven by net purchases ofmarketable securities,and acquisition of land and buildings.Cash used in financing activities increased in the first half of f

285、iscal year 2025 compared to the first half of fiscal year 2024,mainly due to higher sharerepurchases and higher tax payments related to RSUs.LiquidityOur primary sources of liquidity include cash,cash equivalents,and marketable securities,and the cash generated by our operations.As of July 28,2024,w

286、ehad$34.8 billion in cash,cash equivalents,and marketable securities.We believe that we have sufficient liquidity to meet our operating requirements for at leastthe next twelve months,and for the foreseeable future,including our future supply obligations and share repurchases.We continuously evaluat

287、e our liquidity andcapital resources,including our access to external capital,to ensure we can finance future capital requirements.Our marketable securities consist of publicly-held equity securities,debt securities issued by the U.S.government and its agencies,highly rated corporationsand financial

288、 institutions,and foreign government entities,as well as certificates of deposit issued by highly rated financial institutions.Our corporate debtsecurities are publicly traded.These marketable securities are primarily denominated in U.S.dollars.Refer to Note 6 of the Notes to Condensed ConsolidatedF

289、inancial Statements in Part I,Item 1 of this Quarterly Report on Form 10-Q for additional information.31Except for approximately$1.4 billion of cash,cash equivalents,and marketable securities held outside the U.S.for which we have not accrued any relatedforeign or state taxes if we repatriate these

290、amounts to the U.S.,substantially all of our cash,cash equivalents and marketable securities held outside the U.S.as of July 28,2024 are available for use in the U.S.without incurring additional U.S.federal income taxes.Payment from customers,per our standard payment terms,is generally due shortly a

291、fter delivery of products,availability of software licenses or commencementof services.Capital Return to ShareholdersDuring the second quarter and first half of fiscal year 2025,we paid$246 million and$344 million,respectively,in quarterly cash dividends.Our cash dividend program and the payment of

292、future cash dividends under that program are subject to our Board of Directors continuing determination that thedividend program and the declaration of dividends thereunder are in the best interests of our shareholders.On June 7,2024,we increased our quarterly cash dividend to$0.01 per share on a po

293、st-Stock Split basis to all shareholders of record on June 11,2024.Ourquarterly cash dividend was paid on June 28,2024.During the second quarter and first half of fiscal year 2025,we repurchased 62.8 million and 162.1 million shares of our common stock for$7.0 billion and$15.1 billion,respectively.A

294、s of July 28,2024,we were authorized,subject to certain specifications,to repurchase up to$7.5 billion of our common stock.OnAugust 26,2024,our Board of Directors approved an additional$50.0 billion to our share repurchase authorization,without expiration.As of August 26,2024,atotal of$53.9 billion

295、was available for repurchase.Our share repurchase program aims to offset dilution from shares issued to employees while maintainingadequate liquidity to meet our operating requirements.We may pursue additional share repurchases as we weigh market factors and other investmentopportunities.We plan to

296、continue share repurchases this fiscal year.From April 29,2024 through August 26,2024,we repurchased 31.5 million shares for$3.6 billion pursuant to a Rule 10b5-1 trading plan.The U.S.Inflation Reduction Act of 2022 requires a 1%excise tax on certain share repurchases in excess of shares issued for

297、employee compensation madeafter December 31,2022.The excise tax is included in our share repurchase cost and was not material for the second quarter and first half of fiscal year 2025.Outstanding Indebtedness and Commercial Paper ProgramOur aggregate debt maturities as of July 28,2024,by year payabl

298、e,are as follows:Jul 28,2024(In millions)Due in one year$Due in one to five years2,250 Due in five to ten years2,750 Due in greater than ten years3,500 Unamortized debt discount and issuance costs(39)Net carrying amount8,461 Less short-term portion Total long-term portion$8,461 We have a$575 million

299、 commercial paper program to support general corporate purposes.As of July 28,2024,no commercial paper was outstanding.Refer to Note 11 of the Notes to Condensed Consolidated Financial Statements in Part I,Item 1 of this Quarterly Report on Form 10-Q for further discussion.Material Cash Requirements

300、 and Other ObligationsUnrecognized tax benefits were$1.7 billion,which includes related interest and penalties of$186 million recorded in non-current income tax payable as ofJuly 28,2024.We are unable to estimate the timing of any potential tax liability,interest payments,or penalties in individual

301、years due to uncertainties in theunderlying income tax positions and the timing of32the effective settlement of such tax positions.Refer to Note 5 of the Notes to Condensed Consolidated Financial Statements for further information.Other than the contractual obligations described above,there were no

302、material changes outside the ordinary course of business in our contractual obligationsfrom those disclosed in our Annual Report on Form 10-K for the fiscal year ended January 28,2024.Refer to Item 7,“Managements Discussion and Analysis ofFinancial Condition and Results of Operations-Liquidity and C

303、apital Resources”in our Annual Report on Form 10-K for the fiscal year ended January 28,2024for a description of our contractual obligations.For a description of our operating lease obligations,long-term debt,and purchase obligations,refer to Notes 2,11,and 12 of the Notes to Condensed Consolidated

304、Financial Statements in Part I,Item 1 of this Quarterly Report on Form 10-Q,respectively.Climate ChangeTo date,there has been no material impact to our results of operations associated with global sustainability regulations,compliance,costs from sourcingrenewable energy or climate-related business t

305、rends.Adoption of New and Recently Issued Accounting PronouncementsThere has been no adoption of any new and recently issued accounting pronouncements.Item 3.Quantitative and Qualitative Disclosures about Market RiskInvestment and Interest Rate RiskFinancial market risks related to investment and in

306、terest rate risk are described in Part II,Item 7A,“Quantitative and Qualitative Disclosures About Market Risk”in our Annual Report on Form 10-K for the fiscal year ended January 28,2024.As of July 28,2024,there have been no material changes to the financial marketrisks described as of January 28,202

307、4.Foreign Exchange Rate RiskThe impact of foreign currency transactions related to foreign exchange rate risk is described in Part II,Item 7A,“Quantitative and Qualitative Disclosures AboutMarket Risk”in our Annual Report on Form 10-K for the fiscal year ended January 28,2024.As of July 28,2024,ther

308、e have been no material changes to theforeign exchange rate risks described as of January 28,2024.Item 4.Controls and ProceduresControls and ProceduresDisclosure Controls and ProceduresBased on their evaluation as of July 28,2024,our management,including our Chief Executive Officer and Chief Financi

309、al Officer,has concluded that ourdisclosure controls and procedures(as defined in Exchange Act Rule 13a-15(e)and 15d-15(e)were effective to provide reasonable assurance that theinformation we are required to disclose in reports that we file or submit under the Exchange Act is recorded,processed,summ

310、arized and reported within the timeperiods specified in the SEC rules and forms,and that such information is accumulated and communicated to our management,including our Chief ExecutiveOfficer and our Chief Financial Officer,as appropriate,to allow timely decisions regarding required disclosures.Cha

311、nges in Internal Control Over Financial ReportingThere were no changes that occurred during the second quarter of fiscal year 2025 that have materially affected,or are reasonably likely to materially affect,ourinternal control over financial reporting.In fiscal year 2022,we began an upgrade of our e

312、nterprise resource planning,or ERP,system,which will update much ofour existing core financial systems.The ERP system is designed to accurately maintain our financial records used to report operating results.The upgrade willoccur in phases.We will continue to evaluate each quarter whether there are

313、changes that materially affect our internal control over financial reporting.Inherent Limitations on Effectiveness of ControlsOur management,including our Chief Executive Officer and Chief Financial Officer,does not expect that our disclosure controls and procedures or our internalcontrols,will prev

314、ent all error and all fraud.A control system,no matter how well conceived and operated,can provide only reasonable,not absolute,assurancethat the objectives of the control system are met.Further,the design of a control system must reflect the fact that there are resource constraints,and the benefits

315、of controls must be considered relative to their costs.Because of the inherent limitations in all control systems,no evaluation of controls can provide absoluteassurance that all control issues and instances of fraud,if any,within NVIDIA have been detected.33Part II.Other InformationItem 1.Legal Pro

316、ceedingsRefer to Part I,Item 1,Note 12 of the Notes to Condensed Consolidated Financial Statements for a discussion of significant developments in our legalproceedings since January 28,2024.Also refer to Item 3,“Legal Proceedings”in our Annual Report on Form 10-K for the fiscal year ended January 28

317、,2024 fora prior discussion of our legal proceedings.Item 1A.Risk FactorsOther than the risk factors listed below,there have been no material changes from the risk factors previously described under Item 1A of our Annual Report onForm 10-K for the fiscal year ended January28,2024 and Item 1A of our

318、Quarterly Report on Form 10-Q for the fiscal quarter ended April 28,2024.Purchasing or owning NVIDIA common stock involves investment risks including,but not limited to,the risks described in Item 1A of our Annual Report on Form10-K for the fiscal year ended January28,2024,and Item 1A of our Quarter

319、ly Report on Form 10-Q for the fiscal quarter ended April 28,2024,and below.Anyone of those risks could harm our business,financial condition and results of operations or reputation,which could cause our stock price to decline.Additionalrisks,trends and uncertainties not presently known to us or tha

320、t we currently believe are immaterial may also harm our business,financial condition,results ofoperations or reputation.Long manufacturing lead times and uncertain supply and component availability,combined with a failure to estimate customer demand accurately,has led and could lead to mismatches be

321、tween supply and demand.We use third parties to manufacture and assemble our products,and we have long manufacturing lead times.We are not provided guaranteed wafer,componentor capacity supply,and our supply deliveries and production may be non-linear within a quarter or year.If our estimates of cus

322、tomer demand are inaccurate,aswe have experienced in the past,there could be a significant mismatch between supply and demand.This mismatch has resulted in both product shortages andexcess inventory,has varied across our market platforms,and has significantly harmed our financial results.We build fi

323、nished products and maintain inventory in advance of anticipated demand.While we have in the past entered and may in the future enter into long-term supply agreements and capacity commitments,we may not be able to secure sufficient commitments for capacity to address our business needs,or ourlong-te

324、rm demand expectations may change.Additionally,our ability to sell certain products has been and could be impeded if components necessary for thefinished products are not available from third parties.This risk may increase as a result of our platform strategy.In periods of shortages impacting thesem

325、iconductor industry and/or limited supply or capacity in our supply chain,the lead times on orders for certain supply may be extended.We have previouslyexperienced and may continue to experience extended lead times of more than 12 months.We have paid premiums and provided deposits to secure futuresu

326、pply and capacity,which have increased our product costs and may continue to do so.If our existing suppliers are unable to scale their capabilities to meetour supply needs,we may require additional sources of capacity,which may require additional deposits.We may not have the ability to reduce our su

327、pplycommitments at the same rate or at all if our revenue declines.Many additional factors have caused and/or could in the future cause us to either underestimate or overestimate our customers future demand for our products,or otherwise cause a mismatch between supply and demand for our products and

328、 impact the timing and volume of our revenue,including:changes in product development cycles and time to market;competing technologies and competitor product releases,announcements or other actions;changes in business and economic conditions;sudden or sustained government lockdowns or public health

329、issues;rapidly changing technology or customer requirements;the availability of sufficient data center capacity or energy for customers to procure;new product introductions and transitions resulting in less demand for existing products;new or unexpected end-use cases;increase in demand for competiti

330、ve products;business decisions made by third parties;the demand for accelerated computing,AI-related cloud services,or large language models;34changes that impact the ecosystem for the architectures underlying our products and technologies;the demand for our products;orgovernment actions or changes

331、in governmental policies,such as export controls or increased restrictions on gaming usage.We continue to increase our supply and capacity purchases with existing and new suppliers to support our demand projections.With these additions,we havealso entered and may continue to enter into prepaid manuf

332、acturing and capacity agreements to supply both current and future products.The increased purchasevolumes and integration of new suppliers and contract manufacturers into our supply chain may create more complexity in managing multiple suppliers withvariations in production planning,execution and lo

333、gistics.Our expanding product portfolio and varying component compatibility and quality may lead toincreased inventory levels.We have incurred and may in the future incur inventory provisions or impairments if our inventory or supply or capacity commitmentsexceed demand for our products or demand declines.Our customer orders and longer-term demand estimates may change or may not be correct,as we h