INVESTOR PRESENTATION 1Q FY2021 May 21, 2020 Except for the - PowerPoint PPT Presentation

INVESTOR PRESENTATION 1Q FY2021 May 21, 2020

Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our financial position; our markets; the performance, benefits, abilities and impact of our products and technology; the timing for including Mellanox in our financials and its impact; the impact of COVID- 19 and our response; our use of cash; NVIDIA’s financial outlook for the second quarter of fisca l 2021, including the impact of the Mellanox acquisition; our operating expenses for fiscal 2021; the benefits and impact of the Mellanox acquisition; the number of AI interactions; our growth drivers, including, but not limited to gaming, AI, AR/VR, self-driving cars, data center, professional visualization and automotive; accelerated computing; the number of end users and customers for our products and us reaching them; sustained growth in our profitability and businesses; the number of professional designers and creators; our financial policy; future revenue growth; our opportunities in existing and new markets; the TAM for our products; and performance in our financial metrics are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and any other forward-looking statements that go beyond historical facts that are made in this presentation are subject to risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners' products; design, manufacturing or software defects; changes in consumer preferences and demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems and other factors. NVIDIA has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, and you should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although NVIDIA believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. For a complete discussion of factors that could materially affect our financial results and operations, please refer to the reports we file from time to time with the SEC, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports we file with the SEC are posted on our website and are available from NVIDIA without charge. NVIDIA uses certain non-GAAP measures in this presentation including non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP operating income, non-GAAP diluted earnings per share, non-GAAP operating expenses, non-GAAP other income net, non-GAAP other expense, net, free cash flow, and adjusted EBITDA. NVIDIA believes the presentation of its non-GAAP financial measures enhances investors' overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies. Further information relevant to the interpretation of non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in the slide titled “Reconciliation of Non -GAAP to GAAP Financial Me asures”. 2

CONTENT Q1 FY2021 Earnings Summary Mellanox Acquisition GTC 2020 Announcements NVIDIA Business Overview NVIDIA Financials GAAP vs non-GAAP Reconciliation 3

Q1 FY21 EARNINGS SUMMARY 4

HIGHLIGHTS Strong results, led by Data Center and Gaming Total revenue up 39% y/y to $3.08B, ahead of outlook of $3.00B Data Center up 80% y/y to a record $1.14B A100 in full production, fastest ramp in history; contributed to Q1 revenue Up to 20x faster vs. V100, biggest generational performance leap ever Unifies training & inference; adds multi-instance GPU capability to enable elastic data center M ellanox acquisition closed on April 27, strengthens NVIDIA’s Data Center strategy Mellanox will be included in NVIDIA financials starting with Q2 FY2021 results For the March quarter, standalone Mellanox revenue grew 40% y/y to a record $429M Immediately accretive to non-GAAP gross margins, non-GAAP EPS, and free cash flow 5

Q1 FY2021 FINANCIAL SUMMARY Revenue ($M) GAAP Non-GAAP 3,300 80.0% $3,105 $3,080 Q1 FY21 Y/Y Q/Q $M Q1 FY21 Y/Y Q/Q 3,100 $3,014 75.0% 2,900 $3,080 +39% -1% Revenue $3,080 +39% -1% 2,700 70.0% $2,579 Gross Margin 65.8% +680 bps +40 bps 65.1% +670 bps +20 bps 65.8% 65.4% 2,500 64.1% 65.0% Operating Income $1,205 +116% -1% $976 +173% -1% 2,300 $2,220 60.1% 59.0% Net Income $1,120 +106% -4% 2,100 60.0% $917 +133% -3% 1,900 Diluted EPS $1.80 +105% -5% $1.47 +130% -4% 55.0% 1,700 Cash Flow from $909 +26% -38% $909 +26% -38% Operations 1,500 50.0% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 No difference between GAAP and Non-GAAP Cash Flow from Operations and Revenue Revenue(M) Non-GAAP GM 6

COVID-19 RESPONSE Employees – Committed to keep every job & accelerating annual raises; employees working from home very effectively Customers – Able to keep up with customer demand while working through industry- wide supply chain disruptions and logistics challenges Community – NVIDIA and its employees have committed to donate more than $10M to those currently in need World – Offered Parabricks genomics stack free-of-charge; joined COVID-19 High Performance Computing Consortium; supported Folding@home project 7

GAMING Revenue ($M) Highlights $1,800 27% y/y $1,659 Strong demand across all major products 10% q/q on $1,600 seasonality $1,491 Overcame COVID-19 related closures in iCafes and retail outlets with stronger $1,400 $1,339 $1,313 e-tail demand 'Stay-at-home' driving > 50% increase in $1,200 hours played on GeForce platform $1,055 $1,000 Launched RTX on Minecraft – the most popular PC game in the world $800 Released DLSS 2.0 AI algorithm, effectively doubling game performance $600 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 8

DATA CENTER Revenue ($M) Highlights 80% y/y and 18% q/q Record quarter, exceeded the $1 billion $1,141 1200 mark for the first time $968 1000 Broad-based demand across hyperscale and vertical industries 800 $726 $655 New A100 GPUs contributed to quarter $634 with strong adoption across leading 600 hyperscalers 400 Solid visibility into Q2 200 Starting with Q2 FY2021, Data Center will 0 incorporate Mellanox revenue. Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 9

PROFESSIONAL VISUALIZATION Revenue ($M) Highlights 15% y/y Continued strong demand for laptop 7% q/q on workstations seasonality $331 350 $324 Turing adoption growing, now $307 $291 approximately 50% of sales 300 $266 250 Stronger demand verticals included healthcare, media & entertainment, and 200 higher education 150 Supported COVID-19 related applications with end customers such as Siemens, 100 Oxford Nanopore, and Caption Health 50 Remote workforce initiatives boosted 0 demand from customers such as Disney Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 10

AUTOMOTIVE Revenue ($M) Highlights 250 7% y/y and 5% Xpeng introduced the P7, an all-electric $209 q/q on lower legacy sports sedan with L3 automated driving 200 infotainment features, powered by NVIDIA DRIVE AGX revenue $166 $163 $162 Xavier; production deliveries begin next $155 month 150 Announced that the NVIDIA DRIVE AGX Orin is powered by Ampere, our next 100 generation GPU architecture Announced that the NVIDIA DRIVE 50 platform extends from high performance L5 to very low power ADAS - all on a single scalable, software-defined architecture 0 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 11