Segment Information | Segment Information Our Chief Executive Officer, who is considered to be our chief operating decision maker, or CODM, reviews financial information presented on an operating segment basis for purposes of making decisions and assessing financial performance. The Compute & Networking segment includes our Data Center accelerated computing platform; networking; automotive artificial intelligence, or AI, Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; electric vehicle computing platforms; Jetson for robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse Enterprise software for building and operating 3D internet applications. Operating results by segment include costs or expenses that are directly attributable to each segment, and costs or expenses that are leveraged across our unified architecture and therefore allocated between our two segments. The “All Other” category includes the expenses that our CODM does not assign to either Compute & Networking or Graphics for purposes of making operating decisions or assessing financial performance. The expenses include stock-based compensation expense, corporate infrastructure and support costs, acquisition-related and other costs, intellectual property related, or IP-related costs, acquisition termination cost, and other non-recurring charges and benefits that our CODM deems to be enterprise in nature. Our CODM does not review any information regarding total assets on a reportable segment basis. Depreciation and amortization expense directly attributable to each reportable segment is included in operating results for each segment. However, our CODM does not evaluate depreciation and amortization expense by operating segment and, therefore, it is not separately presented. There is no intersegment revenue. The accounting policies for segment reporting are the same as for our consolidated financial statements. The table below presents details of our reportable segments and the “All Other” category. Compute & Networking Graphics All Other Consolidated (In millions) Three Months Ended October 29, 2023 Revenue $ 14,645 $ 3,475 $ — $ 18,120 Operating income (loss) $ 10,262 $ 1,493 $ (1,338) $ 10,417 Three Months Ended October 30, 2022 Revenue $ 3,816 $ 2,115 $ — $ 5,931 Operating income (loss) $ 1,086 $ 606 $ (1,091) $ 601 Nine Months Ended October 29, 2023 Revenue $ 29,507 $ 9,312 $ — $ 38,819 Operating income (loss) $ 19,149 $ 3,751 $ (3,542) $ 19,358 Nine Months Ended October 30, 2022 Revenue $ 11,395 $ 9,528 $ — $ 20,923 Operating income (loss) $ 3,509 $ 3,739 $ (4,280) $ 2,968 Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, (In millions) Reconciling items included in "All Other" category: Stock-based compensation expense $ (979) $ (745) $ (2,555) $ (1,971) Unallocated cost of revenue and operating expenses (198) (156) (515) (432) Acquisition-related and other costs (135) (174) (446) (499) IP-related costs (26) — (36) — Acquisition termination cost — — — (1,353) Other — (16) 10 (25) Total $ (1,338) $ (1,091) $ (3,542) $ (4,280) Revenue by geographic region is designated based upon the billing location of the customer. Revenue by Geographic areas were as follows: Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2023 2022 2023 2022 (In millions) Revenue: United States $ 6,302 $ 2,148 $ 14,730 $ 6,069 Taiwan 4,333 1,153 8,968 5,134 China (including Hong Kong) 4,030 1,148 8,360 4,831 Singapore 2,702 536 4,506 1,963 Other countries 753 946 2,255 2,926 Total revenue $ 18,120 $ 5,931 $ 38,819 $ 20,923 Revenue from sales to customers outside of the United States accounted for 65% and 62% of total revenue for the third quarter and first nine months of fiscal year 2024, respectively, and 64% and 71% of total revenue for the third quarter and first nine months of fiscal year 2023, respectively. The increase in revenue to the United States for the third quarter and first nine months of fiscal year 2024 was primarily due to higher U.S.-based Data Center end demand. Sales to one customer, or Customer A, represented 12% of total revenue for the third quarter of fiscal year 2024, and sales to a second customer, or Customer B, represented 11% of total revenue for the first nine months of fiscal year 2024, both of which were attributable to the Compute & Networking segment. In the first nine months of fiscal year 2023, there were no customers with 10% or more of total revenue. In the third quarter of fiscal year 2023, one customer represented 10% of total revenue, primarily attributable to the Compute & Networking segment. The following table summarizes information pertaining to our revenue by each of the specialized markets we serve: Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2023 2022 2023 2022 (In millions) Revenue: Data Center $ 14,514 $ 3,833 $ 29,121 $ 11,389 Gaming 2,856 1,574 7,582 7,236 Professional Visualization 416 200 1,090 1,318 Automotive 261 251 810 609 OEM and Other 73 73 216 371 Total revenue $ 18,120 $ 5,931 $ 38,819 $ 20,923 |