NVIDIA Corporation (NVDA)

Sector: Technology|Industry: Semiconductors|Market Cap: $3.40T|Employees: 29.6K

NVIDIA Corporation is a leading designer of graphics processing units (GPUs) that enhance the gaming experience with smoother, higher quality graphics. The company's market position is further strengthened by its expansion into the data center market, where its GPUs are used to accelerate computationally intensive workloads such as AI, data analytics, and scientific computing.

  1. Filings
  2. Company Profile

Business Summary

NVIDIA Corporation is a leading designer of graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SOCs) for the mobile computing and automotive market. The Company's GPUs are used in a variety of applications, including gaming, professional visualization, data centers, and automotive. NVIDIA's products are sold through original equipment manufacturers (OEMs), original design manufacturers (ODMs), add-in board partners (AIBs), system integrators, distributors, and directly to customers. NVIDIA's main competitors include Advanced Micro Devices, Inc. (AMD), Intel Corporation, and Qualcomm Incorporated. NVIDIA is headquartered in Santa Clara, California and was founded in 1993.

Key Statistics

  • Employees: 29,600 (as of January 28, 2024)
  • Geographic Footprint: 36 Countries
  • Headquarters: Santa Clara, California
  • Founded: 1993
  • Number of locations/facilities: Not specified
  • Revenue: $60.9 billion (FY2024)
  • Market Cap: $1.1 trillion (as of July 28, 2023)
  • Key Subsidiaries/Brands: Mellanox Technologies, Ltd.

Leadership

  • CEO: Jen-Hsun Huang
  • CFO: Colette M. Kress
  • Board Chair: Not specified
  • Other Key Executives: Ajay K. Puri (Executive Vice President, Worldwide Field Operations), Debora Shoquist (Executive Vice President, Operations), Timothy S. Teter (Executive Vice President and General Counsel)

Key Financial Metrics

  • Annual Revenue: $60.9 billion (FY2024)
  • Net Income: $29.8 billion (FY2024)
  • Market Cap: $1.1 trillion (as of July 28, 2023)
  • Total Assets: $65.7 billion (FY2024)
  • Key Financial Highlights: Revenue increased 126% year-over-year, driven by strong growth in Data Center and Gaming. Gross margin increased to 72.7% from 56.9%, primarily due to strong Data Center revenue growth and lower net inventory provisions as a percentage of revenue.

Products and Services

NVIDIA offers a wide range of products and services, including:

  • GPUs: Graphics processing units for gaming, professional visualization, data centers, and automotive.
  • SoCs: System on a chip units for mobile computing and automotive markets.
  • Networking: End-to-end networking platforms for InfiniBand and Ethernet.
  • Software: NVIDIA AI Enterprise, NVIDIA Omniverse, NVIDIA DRIVE, and other software solutions.
  • Cloud Services: NVIDIA DGX Cloud and AI Foundations.

Key Business Segments

NVIDIA operates in two reportable segments:

  • Compute & Networking: Includes Data Center, networking, automotive AI Cockpit, autonomous driving platforms, electric vehicle computing platforms, Jetson, NVIDIA AI Enterprise, and DGX Cloud. Revenue for FY2024 was $47.4 billion, up 215% year-over-year.
  • Graphics: Includes GeForce GPUs for gaming and PCs, GeForce NOW, Quadro/NVIDIA RTX GPUs, vGPU software, automotive platforms for infotainment systems, and Omniverse Enterprise. Revenue for FY2024 was $13.5 billion, up 14% year-over-year.

Business Strategy

NVIDIA's key business strategies include:

  • Advancing the NVIDIA accelerated computing platform.
  • Extending technology and platform leadership in AI.
  • Extending technology and platform leadership in computer graphics.
  • Advancing the leading autonomous vehicle platform.
  • Leveraging intellectual property (IP).

Industry Context

NVIDIA operates in the highly competitive semiconductor industry. Key market trends affecting the business include rapid technological change, evolving industry standards, and increasing demand for AI and accelerated computing.

Major competitors include AMD, Intel, Qualcomm, and large cloud service providers with internal hardware design teams.

Risk Factors

  • Competition could adversely impact market share and financial results.
  • Failure to estimate customer demand accurately could lead to mismatches between supply and demand.
  • Dependency on third-party suppliers reduces control over product quantity, quality, and delivery schedules.
  • Product defects could incur significant expenses and damage the company's reputation.
  • Adverse economic conditions could harm the business.

(Generated from latest 10-K filing)