NVIDIA (NVDA) 17 Feb 222022 Q4 Earnings call transcript

Good afternoon. My name is David, and I will be your conference operator today. At this time, I'd like to welcome everyone to NVIDIA's fourth quarter earnings call. Today's conference is being recorded. [Operator Instructions]. begin may you Jankowski, your conference. Simona

and discuss Good Call our is webcast for of you. me Vice the XXXX. from Huang, President afternoon, Kress, Financial and Fiscal live to webcast everyone, Conference on to financial being transcribed conference prior NVIDIA's consent. be today remind until It for President Jensen replay are The is without I'd to Relations the and The NVIDIA's for welcome NVIDIA written or property. Executive the available Executive call will website. fiscal call With be Officer; first Colette today's and our results XXXX. Thank Chief of Officer. Fourth like reproduced can't our Chief of NVIDIA's Quarter Investor that quarter call content you

may statements During on our number significant this risks based and to current expectations. results materially. make we and a may are subject of differ call, uncertainties, forward-looking These actual

For most a our and we on disclosure release, could earnings reports are X-K future discussion available update based any Exchange and All and with assume made to in today's obligation as statements. we the XX, to no us. Commission. the Form our that please XX-Q required file refer business, that February such of Forms the XX-K factors recent may as financial results Except affect on our Securities today, to statements of currently and XXXX, information by law,

will call, we this discuss non-GAAP measures. financial During

call me to commentary, which website. on GAAP these Colette. financial to CFO measures a over With turn financial in our of find our posted reconciliation the non-GAAP can that, let You is measures

Gaming, X% XX% Gaming $X.X compounding $XX.X up sequentially an was Center that show up billion and records Gaming. earlier. with Data top a revenue the revenue with We revenue year-on-year was medium for record from and as the revenue a Simona. strong of We become set year year was XX%. excellent of well Visualization. Fiscal XX%. Professional growth prior XX% has Revenue to year quarter momentum. as Thanks, billion year's Full to up rose had continues $X.X entertainment for Starting total billion, billion. $XX.X of up XX%,

All we XX Just Steam ramp new world. include years. up the number laptops. products concurrent XXXX leverage hit of users, month, our These and gaming new last was were a enable our growth Record tier Series record in RTX also in GeForce led million XXXX revenue X quiet laptop studio our XX% with XX audiences. by quarter and technologies in in announced in, innovation XX a at tens strength bringing over XXX for announced in to hit the virtual of continued and the desktop we Ti design, the Laptop RTX XXXX mainstream NVIDIA creators light announced designs architecture retail future by January, the GPO, CES, fourth-generation revenue GeForce CES. technology to late more also a gaming which high systems AI Max-Q GPUs, and RTX the and RTX Series of end. which of driven set driving GPUs. the of At RTX millions NVIDIA These record, targeting

XX Auto, XX and gaming low. RTX Studio Tundus and products to Availability Duty: XXXX, Call and remains new Grand channel NVIDIA in support with NVIDIA the supporting for our this over new continues of War. Omniverse, future software Theft to like addition Vanguard In expand applications Series Broadcast. GPUs, including with the ecosystem RTX added hit of blockbuster laptops quarter, games of God Battlefield RTX

Reflex for new support In titles NVIDIA addition, low-latency several impact.

GeForce demand. Nearly GPU cryptocurrency into in shipments much our Cryptomining Ampere architecture and how visibility so of cache to revenue supply help is overall limited desktop OEM of million, gamers. was this capable impacts $XX light mining, processor direct are which are have included rate GPU to GPUs NVIDIA Our GeForce we all other.

hit We Battlefield NOW for CES, expand titles, announced EA's beta NOW V. including the new continue TVs its gaming This the Samsung smart this in LG cloud a QX integrate At release last Battlefield starting to NOW smart ecosystem X and with we NVIDIA to partnership year. TVs. GeForce with of in month's of GeForce GeForce follows

the with In AT&T NOW teamed mobile XG to in up bring we addition, GeForce U.S. to devices

data We center also GFN in Canada. added our first

visualization. to XX% was and quarter higher-value strong key by health demand continued build-outs year up is well growth hybrid We of sequentially billion pro Fiscal a up care the workloads, and ago. XXX% $X.X ramp design, XXX%. was Sequential as workstation driven was QX in shift million Moving believe revenue in our work year continued by a $XXX up NVIDIA revenue from environment architecture. to AI growth fueled as the and for of rendering. including was

AI and with Omniverse using is feedback licensees applications. facilities. ImageWorks while Pictures accelerate related far RTX for very been days, general map, already maintenance And RTX significant early is NVIDIA And ray-tracing predictive NVIDIA it's has Energy is signed. NVIDIA still to software using VR multiple Sony so entered availability. positive, customer energy view in enterprise rendering for Motion in and assist maintain using AI enterprise the vehicles. to Duke for RTX to example, NVIDIA of For

Omniverse we also drives and with single AI with a software to CES, individual's used XD by to superset free At workstations leading Omniverse Omniverse the In for free applications by design servers software and their version creators physics. work and GPUs teams scheme of for cloud. computing enterprise the and individuals on-prem Omniverse to opportunity addition subscriptions. connect RTX for made can NVIDIA general laptops, availability. RTX allows be via and licenses, in

also Omniverse collaborate which globe. with across We or capability room announced the across to to artists, early Cloud, adds other access whether one-click the

It accelerate real-time with route of twin NVIDIA several the and platform SDKs, digital securely delivered mapping, Mobile optimizes Robot cloud including data for or reop the and metropolis remods. platform Omniverse and optimization. we situational awareness and applications, For technologies operational AI announced Autonomous for high-precision logistics from efficiency and consists Isaac using orchestrated deployment

revenue Moving XX% and was quarter. was year $XXX million Fiscal X%. $XXX to QX declined year X% ago million, sequentially from up revenue the of automotive.

We return started half growth to more hand fiscal the expect and now automotive building to sequential of platform our to XXXX momentum on morning's more this color have over calendar just news. of second Orion-based QX to Jensen inflection provide revenue product the and I with in [indiscernible] it shipments will meaningful in year into

develop will the DRIVE will This Orin Earlier XXXX, architecture AV of automated DRIVE software. systems. the driver will Colette. spectrum today, DRIVE nervous and built safety, will new the system to a services Jaguar Thanks, including AI AI Land jointly our we and of a vehicle, and and parking of software-defined visualization IX Rover vehicle new monitoring AI-enabled and features, the vehicles on next-generation deliver fleets surroundings. Rover the be brain Inside systems, partnership central the sensor vehicles and automated active Hyperion be system. plus and wide with platform. Starting Jaguar And in will driving network have enable computer deliver Land running advanced DRIVE driving NVIDIA DRIVE all announced software the cars. occupant

his Bolloré, with forward to luxury reinvent much partnering and We are looking CEO, JLR's cars. Thierry to team the very of future

vehicles and for new Mercedes-Benz. fleet offers our life with downloadable revenue software a JLR AI is partnership follows services approach end-to-end model stack template full fleet. companies over the of that to the announcement of business AV the shared the both with a Our stream of This

million will both with with shared Colette, scale which, software over cars fleet, back NVIDIA-powered their OEMs you. exceed revenue XX opportunity can to Our size decade. of a the combined,

Jensen. Thanks,

cloud our compute Inference-focused Moving more by inference strong $XX.X has year AI. which continue billion helps than The drive year-on-year. demand our than to of scalable software, center Fiscal was customers with year-on-year. grew GPU on sequentially NVIDIA and tripled Data architecture-based growth was demand was double-digit recommendation enabled to companies. AI led posted our as revenue fast well the and was server of NVIDIA been systems growth. more adoption Triton Internet as growth also again revenue production. $X.X cloud of deliver revenue such and AXXX product Data natural XX% by led workloads Industries up Record strong strong consumer doubling XX%. growth driven Center. for by center from Ampere year flagship in for language continued quarter as Vertical by outstanding, demand and deep learning XX% a widespread revenue deployment once compute products earlier. Accelerating France of executing. billion fast-growing year-on-year Hyperscale in Data AI and processing

GPUs service appointments AI in Square with faster payment, For global in models our on and conversational trained example, and on CPUs. are AWS video Inc., to GP uses inference a Assistant perform Block on These the customers. schedule XXx AI in AWS its leader

deep cost to software company Snap media improve Xx. and XX% GPUs Social used and Merlin recommendator efficiency inference latency decrease to by NVIDIA

to For Xx AI row, NVIDIA language on with training and only of benchmarks as vision, reinforcement performance. latest computer continuous like partners across Microsoft innovations to versatility workloads, X show in our and The numbers the records software. make our stack the year to in the that the submissions learning NVIDIA months, as in for recommendation demonstrating processing, was platform performance. just industry cases, in Azure, Along continues optimization a across GPUs well the AI system including thanks systems, gains benchmarks natural benchmarks third industry and performance tools AI over all AI in across NVIDIA lead AI X use full detection. show such algorithms, AXXX popular

NVIDIA AI leading X our sought software. research, XXx we offering the past by made the some years, of powered of most performance advanced supercomputer The over gains XXx SuperCluster, technically companies. language networks, with of XX,XXX Meta's across by stack is moved performance. to X,XXX an a world's that and GPUs, mixed performance to will second Meta system systems GPUs advances run Meta unveils large have benchmarks the AI new its system. the prior Over train -- they NVIDIA natural will Platforms believes In expand after saw full phase AI than can its processing jobs computer showed early GPUs later system precision Xx Xx models deliver vision of faster year, and faster this AXXX over

range criteria of scale, to its addition models and In security, performance the AI as a privacy key handle wide cited system. for flexibility Meta extreme to at reliability,

We reach NVIDIA industries. the continue AI into ease broaden and adoption of vertical the to

with mainstream VMware, Insper, we other IT expanded enterprises NVIDIA-certified of NVIDIA Enterprise infrastructure the Enterprise, Our expanded AI Cisco systems AI released We to which software, allowing and Dell, NVIDIA annual joined for workloads on -- among number accelerated And X.X integrators qualified ecosystem on of well. Hitachi Lenovo version our Supermicro, manufacturers. and Enterprise. HewlettPackard as of sever system

infrastructure computing providers top global category partner NVIDIA of NVIDIA CES, AI collaboration that's Enterprise Forrester truly a integration a system AI development, IT enterprise leveraging DGX to which Research of recognized to in to in intelligent An has example into developers team firm, Deloitte's center Superpod. for X,XXX scientists for AI its on expand X,XXX our we evaluation helping At architect is of leading infrastructure built and leaders. its the and data reach solutions our consulting Deloitte, AV our of own robust transportation. extended

networking year-over-year across next-generation by growth sequential enterprise from and of adopters-led deployments. growth, adoption demand Our posted ranging products cases and strong our use and driven to by computing, higher-speed products storage. exceptional supercomputing driven

we're serve NVIDIA we are with was revenue business seeing our which capacity about in and are traction Across by significant AI, quarters, the models, seeing. coming allow NVIDIA board, to anticipate we the excited including improving we with NVIDIA DRIVE. should Omniverse software new While gated demands us customer supply,

We are early software revenue ramp. still in the

to with across seek as industry building and adoption innovation customers are pace pipelines accelerate Our the of their NVIDIA.

Now to some turn it Jensen Arm. me over back comments on for let

entered regulatory in concerns. terminated expand efforts into would focus and our from combination spurred We transaction all proposed help Arm. markets, Last XXXX, that believe worldwide. technologies, September on we entire pioneers Arm Colette. questions new purchase benefiting Thanks, of any acquisition appreciated we of week, the important ecosystem. to regulators Like our and in the customers CPUs high-performance our accelerate When Arm's we the into

be will For over ecosystem. a closely with and our a year, the approve our we give SoftBank reassure of Arm our too work but and we continue in strong, needed NVIDIA steward the regulators strategy gave accelerated could were would Arm best to worthy the NVIDIA's it computing before. Arm not regulators We explain vision they shot, for worked to and comfort our deal. and as that overall headwinds

Our focus is accelerated computing.

first on track CPU, are in launch We and next AI the year. workloads to Arm-based HPC half targeting our of giant

IP Arm's us to the of allows architectural markets. XX-year across technologies flexibility full options Our license breadth and and

xXX use offer of deliver best across or the will DPUs. challenges CPU Arm, GPUs the tackle partners will together for the in to and Whether platform And We to best the impactful Back with X-chip job. we the world's industry, CPUs, our you, strategy time. our computer on Colette. computing

to going P&L our and our Thanks, Jensen. to turn We're outlook.

rest lean. the today the For to commentary please Relations published the of the discussion of refer earlier Investor on our CFO P&L,

turn me the first outlook quarter fiscal Let XXXX. to of the for

GAAP sequential be expected expenses be points. plus the XX.X% XX%, billion, Arm basis be We and Data expect are Non-GAAP $X.X of expenses to be also Center. to are Revenue billion. gross contribute are XX including non-GAAP or GAAP write-off minus billion. $X.XX growth by operating to $X.X expected margins $X.XX to or be and primarily respectively, plus is to to minus Gaming growth. driven X%. will billion, expected expected operating

we a expected non-GAAP gains and are $XXX minus similar For me as fiscal expenses the available and included are community. be and operating other expenditures income discrete to on highlight the website. to Non-GAAP $XX fiscal other the non-GAAP Capital nonaffiliated on X%, XX% in items. tax million. commentary IR financial plus at to expected rate upcoming approximately both CFO grow $XXX approximately our expected are XX%, and information for be losses let GAAP operating, details In be an in Further or expenses events closing, year, other financial excluding are million expect investments. million, and excluding expense percent of XXXX. to to

We will and March the person X. be Telecom in on Stanley Morgan Media Technology, Conference attending

keynote, will hosting This tune you Investor Day we Conference. We March which on to also virtual be alongside opening invite GPU into. follow the a Technology XX, Jensen's will

XX. Our of earnings Wednesday, discuss results scheduled to our fiscal first XXXX May call the is quarter for for

questions. questions? will will We you call for for the now Operator, poll open please

Toshiya We'll question take first Goldman & Sachs our [Operator Instructions]. with from Hari Company.

April based wanted ask on probably on Data about guiding the Great. basis Colette, Center. accelerate to quarter. Jensen growth Data you're to and guidance, Center I year-over-year Colette, a into your

and into cloud talked Can for January You in of the enterprise strong to second fiscal you about drivers kind as year of Data half April verticals perhaps Xx the well growing hyperscale growing the quarter. double speak speak visibility and the digits more in than Center? to

over to I'll Jensen. and start, it I'll turn

we of terms acceleration Center QX, from of guidance can our an For include Data where in left QX.

several Gaming of there and to full quarter market We see Center, QX, over QX. as couple for that we of will But and growth a the I'll into we Data accelerated platforms year. have growth for within drivers across is Jensen it probably others. our move about both the turn to yes, expected the also to be talk

Yes.

all, We to great have several you. Toshiya, -- hear of from first

bunch bots, service chat whole It be in cloud cloud, point-of-sale we're are cloud-based. making which could all use applications. There's We enterprise and in cloud. hyperscale, different work recommender that cases are entire We're is for And invention service, that models rendering the AI that's have Recommender several the could customer been models driving AI putting drivers can systems, particularly of growth data invented It time. transformers, customer graphics, of or really core models web-based. understanding improvements. growth deep centers. simulations probably There enterprise are gaming, in the groundbreaking cloud the several It conversational be systems the most triggered public important in edge. up And gaming, learning-based cloud, cloud language are some seeing used exciting, a one doing across -- by be and base. the large putting spectrum. Android language, adoption of of

in the different platforms use And centers. data different cases so all across of many

with to we'll ISI. Next, C.J. Evercore go Muse

if center through headwind and terms for as revenues another that speak that can you in side and on the played to quarter whether constraints year. the you supply Curious guess question I data proceed of a side. on of less you the see January in you wafer role how becoming the capping a

question. on for start the the center C.J., I'll data Thanks, supply.

Networking still Data across single to the 'XX discussed quarter we supply do expect business quarter our improving constraints we and year some constrained. We're in each has as businesses. day. last Center today, we improve As of And supply into here. have every discussed we enter fiscal supply some been

probably our well. be the is to the can so that in rest there time, year question area Center. as Data about other But the key the rest on So how time within terms -- do the turn of of Jensen from focused I'll of to

Yes. Catch well. it

supply are We constrained.

demand Our than supply. greater is our

As line HGX, that motherboard GP and combination system or Quantum you is meaning it's will, delivered entire the you in mix, DPUs, because and consists switches, board of data know, the component, our complicated. spectrum Bluefield GPUs if center entire product so

a GPUs have industry centers of of to for standard AI scale, we InfiniBand community cloud, so span enterprise data and use supercomputing inferencing servers, at for models for cases and quantum that very systems broad training And products large that use from reach use switches. servers universal public to

space across application constrained And We much entire saw broad. quite so is pretty the demand range. the

did all Our in this of complicated these fantastic our also executing team year, both in operations base. products, in a expanding supply but job

quarter, base. this to each supply is, with expect this made, the Colette QX is April going just coming based every that on quarter forward. the -- an quarter guidance And improve increasing We supply and consistent quarter,

half. expect be next increase to base this in but to We substantially quarter, still pretty and second constrained, our this demand quarter going supply is the

Moore go we'll Stanley. to Next, with Joe Morgan

oriented Just primarily opportunity about how separated what strategy term? to from aspirations HX you of versus -- a there? long your acquisition of that and if bit going the Is the are DGX talk little merchant could Systems Arm. to it chips? thinking the you be I business are The Grace Great. about more kind wonder now that

Thanks, Yes. Joe.

the and And several to the in such. the from -- years after projects in robotics through It doing robotaxis to such. company as such into starting earlier, and we going accelerating production. of and as ramp is and the an automation, as vehicles QX, multiple-arm a started mentioned cars Orin but applications ongoing and for robotic into connected all robotics drive it's the inflection have systems We autonomous point Orin processors new electric industrial and devices QX robotic well. incredibly and of we going that's all

Grace. mentioned, projects that We Arm also with have you CPU the

follow-ons lot around We have the developments Arm do surely us Grace, of could the architecture. a have and to we expect you Grace, to and

of evolved the One of development success things in and centers. And them that's that of really really and the is motivated the hyperscalers couple over seen accelerated nicely last to Arm the years data higher-end CPUs. has accelerate it's

And is us. first lot just Grace exciting from to going you're so of see example. And a coming CPUs the

see you going them xXX an it's is But for it our accelerated do whole to beyond we bunch as You're know, living. a of any If ultimately from That's there's CPUs. any where a that. We, love what strategy computing. vendor.

have we robotics artificial computer for it as CPU, accelerate it such. to and graphics, we platform long intelligence a and could NVIDIA's So connect or

and the of we footprints, vehicles the different cloud and applications, NVIDIA spectrum love supercomputing accelerated see robotics computing Arm in NVIDIA's just and of and intend thrilled is to all into platform to we bring so expansion computing we're now full to CPUs. these autonomous And CPU growing and Arm that and

Credit go Next, Pitzer with to John Suisse. we'll

is quarter the you've quarterly quarter eclipsing greater obligations, where inventory row number where your growth sequential in guidance. purchase now was the the of think XX% on fourth revenue seen kind first and that this is Just I a than

center just is on across extent relative a continue things commentary, kind figure I'm grow? out of throughout year, longer future the industry? off? Or to that get is extent that are that so what should to tale this number semi moves bullish should reflection number to supply better poker and are complicated to devices guess this of what your you And how trying I demand? cycle tight starts the And how start data the the of we to mix times, to expect more To to to as more level to more

in footprint us both prepare each for you for and that significantly in we factors, this forward, mentioned chain, to also of supply but supply product base chain the going drivers quarters year expanded some launches. supply the in really the supply preparation exciting increased The availability our one

NVIDIA's is of very us large point that new success This As new. ramping in autonomous should to going is was a brand capability Grace of on we mentioned, vehicles road love exciting brings. type vehicles. It product been Orin into be customers product of desperately brand-new already with for inflection us going Grace this see need never who the And is This business is has it architecture forward. the the for be of a launches. into And already and map. a growing pretty year mentioned, great that autonomous

we're laying preparing to all marketplace. us exciting those so to foundation And for bring the products all for the that of

we'll to Next, Tim go Arcuri UBS. with

lot talk software. you a of basically markets. investors. a medium But about center, you how black did stock about break sort really up huge Obviously, from today data that there's software new a you of the box it kind still big maybe in might I'm talked more Jensen, you've like the to huge, a which got I And can you to bit maybe it's little revenue know, a as way. And out of think licensing for open wondering I start if software moving when is and live quantify

we software-driven the been processor accelerate and to recognizing is the engines system software, applications the computing a potentially want acceleration NVIDIA domain accelerate to can Accelerated starts from business. Yes. and NVIDIA applications -- system what is Omniverse. sit stack The an of even then from entire of the It a we and always think building to software-driven earlier, business. we've DRIVE, NVIDIA are are licensing and to some we have to software really on -- Enterprise of world server. the available that for not customers. AI packaged per software that XX the software-driven engine enterprises, enables very way for engine every the most There's license in server first utilized to to business. licensable The trusted, node XX software use servers that are is in able time, most that million, million NVIDIA on enterprises the installed itself, to the we the way our But like in These AI the marketplace. We future software And system valuable and top we software. be that including believe like running world. the that about the will to were applications offer mentioning be the single advanced an so AI NVIDIA clouds. software in most today would a AI

essentially content so -- that creators AI. that designed NVIDIA contributing And if a to world. you and to targeting is robots The the for Omniverse it target NVIDIA contributing will, virtual connect is virtual for to are in is market, a content world

the upfront license, if economics deliver, is -- of share the connection And a service so subscription, the twin designers AI AB If it's an to cars based life single or And are whatever parking the of software the share per And system it's on the are or going connections that And car of There get in car. software, those fleet of hundreds of, benefits developing, the we economics and we are or the will it's digital Omniverse. for someday. we of the of the world. DRIVE, of that so millions creators we year. connections. whatever that those will the service, for connected of There a XX NVIDIA service, that basically, the of are if we software that. are end-to-end into be But the model robots. economics Omniverse like around cabin-based part that. Every that a per licensing software be will monthly the it's case the business we entire of share is be million economics robot essentially we're the

so XX of is modern high. market, the the could XX million XX years, installed opportunity the imagine, a car with cars, quite to economics and you with And lifetimes

years the and with really this Enterprise, offered so business time when very really, up DRIVE. our was on And and several stepped those started factors. virtual software AI we ago based first but Omniverse business is really our GPUs, NVIDIA But it for year opportunity

a to watch the significant And is look so us, and we business going reporting this on to I be very think opportunity forward spot, for it. I

go America. to Vivek of Bank Next, with we'll Arya

then we of in that, Jensen, enterprise you adoption would the an where on to I there tend adoption rate base. are in your billion you past, customers? to of to to you was AI you growth over And for to among you the How deploy differences curve so are XX% the element sheet? mentioned of hyperscale is your inorganic growth balance have that your differentiate also? planning adoption about between kind hoping that that between or customer quantify now cash your $XX related that kind accelerate and

chat fraud pointing detection, in in chat for we'll AI, the enterprises But whether it bot, bots. calling are will the have and have in be service, human chat of consumer applications it's chat businesses, in will website every bot, bot. where The in a Yes. whether not have phone and But people cases financial services, the AI a or is unquestionably number human could growing, it's a loop, loop future, growing every a conversational fast. customer incredibly

are service customer and heavily the by a be chat it's so And in intelligence businesses will by every I going sales, quick service, service. or whether heavily, supported have supported fast think, be Retail food agents. customer future. will to AI AI-based artificial a point Almost checkouts of bots

have the computer obviously much than difficult of speech, that made with can't. good provide have understand vision, the and is people and a course, to intelligent is human you of you manager so great more or could your ability it's one provide they a eye things call the is because such, a agents, an breakthroughs, of posture of have about not to about services couple which AI context therefore possible this by call that loop And all is service. much, somebody what make and recording, spoken if recognize The being contact the the to AIs so and reasonable in customer to, and will, so conversation your recognize

so that last number in just in different understanding enabled by And been natural the has applications of grown of service years have tremendously. couple language the customer

we're now in And much it's we days applications AI early and will different software -- in how future It's we with fast And by be I written think an these has it It says industries. that will AI. almost it possible AI. AI. be see remain all pretty grown incredible our when are adoption. it done, or many different with how all

pretty this early I'm ever known. the as we Arm is terminated we -- yet of software AI, our going you agreement. the to we're have innings to industries of With respect know, certain of largest be in just we that so capital, one And had and

a all capital and that, we'll just have much the so judgment capital. sustaining have how during regular make accelerating those and our process, delighted through we'll We're to capital to best growth our of meetings. capital and allocation use and about in our strategy our we'll conversations go We have growth, and helping growth those sensible

there. to just put so it out And

Fargo. And go next, to Aaron we'll with Wells Rakers

your going are we launch about This in on view Can of Aaron. product of behalf how gaming? is is maybe Michael where cycle XXXX you the And on far? talk more the so broadly, the RTX guys of

Thanks, Michael.

RTX the tool on based just being is and be course, RTX, Omniverse planet every by design by only possible. to in we still and an graphics. is with but if these adopted physically Tensor artificial radars decade being like of be physically computation than combination a is computer of images, path more planet developer game which that generate ultrasonics -- performance forward We thought it for to the also cameras simulate see. call our tracing tracing processors, deliver. And about ray simulate engage our RTX now. adopted on cameras to and do just able anybody made every It's powerful not deliver this using modern the be now. not DLSS, LiDARs images. the wouldn't wouldn't we able ton of for possible. completely have We processors that do GPUs enabled we RTX technology beautiful brought able earlier intelligence, Let's about RTX run. a home and and unqualified type sensors and to The -- reinvented It

And an think, from Omniverse. modern was computer us for new growing. about, graphics. way an an is upgrading installed to of reset base about the for changer so a the X/X it We're was entire And It through game I enabler RTX platform industry. that build

And You brand-new players over know store that the has concurrent the Steam world's a grown in gaming and has multi-hundred of million by years, the on a already games couple XX%. Steam last genre. video came is game it's grown tremendously. X just business. The from now on, number And of last Epic years largest dollar

see I think close they're it's to doing I'm that incredibly to billion so it. happy well. $X

GeForce quite overall the and associated are gaming addition and growth that, computer brand base, of resetting in gaming our There are dynamics the market growing growing. RTX quite other couple the to But growing really base so thing graphics because with of that's for is that And new. growing is our it's nicely. installed a installed entire

is This now have and studio to who at One designers could do workstation is hybrid home are And across workstation home. work their are new new that people we a of design the they creators set so up now permanent seeing a essentially board condition. them work. or

really, everything XD ads creative has economy in now. economy, doing in In be done the are Print economy, to addition, the XD. digital done fantastically the creative is really because

broadcast live So influencers reality and their is augmented Video of XD video in augment XD XD. with print is the done graphics. done millions video, broadcast XD. in rich In now

content, And all digital forms XD now content for graphics just it's not games is used now creation. XD of actually and video so for

and of And different it, in early RTX. behind definitely the has of innings we're these so all working drivers RTX

to Bernstein go Research. Stacy we'll with Rasgon Next,

Center, So quarter by said versus between how if the some growth that those next in all, about Data that you Can versus pricing feeling Center. or is us at for give being Gaming Colette? units the for differ driven is and you $XXX growth give and Data million, by mix might how drivers driven take,

based It's -- really data on early be driven center that will overall to determine, have quarter into our an primarily. we going ASP and QX by Stacy, the unit exact the our growth in will mix quarter-over-quarter

a there gaming. of in will see growth bit We little

seasonally. which even to gaming, holiday moving we've I think probably is see we'll into in after QX in growth that QX, terms seen understand important that's still different of what

as There We so QX are some will sequentially well in between constrained. have and areas QX. automotive still growth are probably that

We are working but quarter forward, that Data going should you again every for look at to try primarily from improve and that's for how our earnings QX Center.

go JPMorgan. Sur with to we'll Harlan Next,

NVIDIA connectivity scaling compute in team, connectivity the solid bottlenecks yours for GPU portfolio on and of has in accelerated your results pretty The improving systems, addition customers' solid Congratulations platforms. especially enabling your the networking been execution. and

spending year in So where growing a XX%. is

NIC strong overall grow just a than capabilities overall architectures? business for faster year? in got unlock can good upgrade products will or And if your for your Data line networking for team leveraging driven networking supply, Mellanox's cycle, synergies connectivity? connectivity more which the good and have is you And NVLink business for switching You've networking in the then connectivity internally the attach Center leadership developed example, Jensen, and rates, their between this continued

for that of space countless. Synchronoss absolutely. of the bring secure are that the closely these some work Pine Yes, of and to physics would just scalability and so we're been possible. Meta possible. and Omniverse The innovations, just that fabric, that concepts The -- DGX did not was work we're obey with network, that could possible. that computers are we networking into doing If with time, the be overlapping number cloud-native laws simply in Super research have Timing not The DGX to and so just compute, create the installed not supercomputing things doing the moving the multi-tenancy moving wouldn't of into Mellanox, work Precision the computing and we supercomputer that

so The by map And probably a through doing. quantum what a and chip SerDes combination are absolutely the the the world. in absolutely about accelerated a larger Ethernet switch and switch, the as has road of and the thrilled I world-class, shared between much We've in year. best team -- we are design. so maps so NVLink, the could BlueField's the result been servers that switch spectrum InfiniBand of and with the combination am leverage road base accelerated the work Mellanox

of really countless. the list opportunities the quite or list of And combination so is benefits

to I'm If growth, that supply growing networking so And weren't And be should constrained, should -- be is we thrilled reason for faster for that the growing. we super With twofold. we than with reason respect that. overall CSP the growth.

is in position higher-speed of heavyweight networking, of The move. end of the is adoption tends leadership networks where Mellanox the to the highly Mellanox, first because upper networking

technology world And data built, sensible the as networking with networking so to the install that class. new it's is And higher-speed than preference centers Mellanox's are is unambiguously first it networking. last-generation

with AI is second reason related quite is areas areas do NVIDIA fast, and which has intelligence are that overall because to where strong the the The growing such. or artificial the to cloud

those applications core. so growing different faster And the are than

would CSPs And be we so the expand have continue supply faster it as base overall. to grow that our we opportunity sensible to than

Our Matt next Ramsay question will come Cowen. with from

you having business. just vendors a Jensen, and you lot respect I/O could in business. to last but server both be about your the happen big were platform might It's that on in have year, for Data often the these later bit will upgrades cloud currently also to new this speaking in which Center memory talk on PCIe, enterprise going not in Data there, the xXX ever of some CXL with side, might both constrained probably about same maybe wonder you that business you broadly if and wanted you year. DGX I that systems your a answer There's expand unlock I Yes. the stuff. feel things some maybe and the Center what

highlight are just Yes. some and Thanks, Matt. The let -- me there bottlenecks, several of them.

speed, the and speed. the cetera. reason why bottlenecks GDDR, is world, And largest et we One memory memories in fastest HBM cetera, use of the et that's memory the

We not are the the there's that -- the close in fastest world of memories second and no even I largest with by not consumers -- know.

do. consumption that to memories so our the of is work we important And fast

fastest is It fastest second The have It why we the networks any reason we most in is the have reason also system. why is the networks. networking performance. the

example, We will server. the or DGX X connected for have, HGX highest right at into InfiniBand speeds

GPU -- that is direct are work the GPU memory, an just the and do incredibly moving storage, world-class. is reductions that in and am do direct just This the do we in-network around computing absolutely And area I data work the that so inside with RDMA, that we all we network work proud. with we

as be CPU. as we the This less is utilize inside the Gen X CPU can that have GPUs. as of and that we we a transition PCIe by in X. to resources goal much we can. DGX All on we fundamental the and much bottlenecked could is our expect offload Remember, X to system And is Gen so that year, as

that. to We'll well through the good X. years. couple constrained to year, as strategies but going X bottlenecks systems at. the But on and of through avert X, continue Gen that that we well improve next X over and Gen of And maybe advantage have Gen on we're systems much constrained kinds installed take be And that's are there. all technologies We we Gen of X of next that very we're are to all something of we'll the be support used Gen of to And are base as all can. and the world, new we'll the throughput

final Gill Our from question & comes Needham Raji with Co. the of line

how on be by software the the do margin Is of creating we how quarter a over Congrats exciting, margin a to opportunity and but the very segments? When of increasing and think mix and upside that margin years, of hardware translate on gross percentage more would in Jensen's Enterprise. curious of margin about driven software as to of point Yes. going really over kind profile of revenue of side Colette, is guide. longer-term that? it driven time? Omniverse, software good The an kind contemplating just DRIVE terms your couple on Is to profile. your more there about your by really your question business I'm next you're some of a the

able a to with lot that future the our going our procured our believe the helped yes, many We've I our but with long solid Enterprise Yes. the now businesses the incorporated the and work scales [indiscernible] we're set platforms customers, gross on create center create have think stage been question package in data term. to a our gross to up the platforms be this and about the done of growing meaning margin, be opportunity of it us even to we package with partners this these so as able we and term. up Data business software we've -- us, that. us -- have on a great we've a work in having to to margin long in really also the do or driver and today, managing continue we separately the high-value Thanks of it. it sell and really for that [indiscernible] the already the of When But believe are deals, So business our margin gross long-term with will point, years. margins to to a sell that in for ability for model, in will center growth to opportunity over got job the helping be

over turn I'll for you. remarks. Jensen it now Huang closing back Thank to

computing NVIDIA record everyone. NVIDIA tremendous for our year. drove platforms, demand capping NVIDIA HPC AI and RTX, a great Thanks, quarter, The a

impactful creative gaming, biology, and Our work robotics sciences, and today's propels autonomous advances fields. vehicles of some design climate in most AI, to digital

the across open adopted data team to for am our cloud Enterprise, center our the this service. data architecture and full base operations Omniverse serves strides better we NVIDIA the models NVIDIA computing autonomous that a DRIVE application demand. Our from AI and is scale driving new serve proud in to by for I make mapping year, company edge And chips, NVIDIA substantial full center we NVIDIA DRIVE. customer the industry platform AI with globally supply customers platform and and stack with is and business to software AV end-to-end stack, optimized scale introduced of NVIDIA as simulation, core broadening robotics. infrastructure

world with of across up center worlds and physical and AVs, companies our And evaluating NVIDIA like shuttles partnership world. proud is our trucks. Orin Thank do Walt new makes the fleet. you building Rover model more the incredible services our and is digital share twin, GTC, our Omniverse to fleet be year, system most use can a are promises had Mercedes-Benz, next of simulation be a can a our and of next companies and developers wait to a computing a fleet building cars, factory of robots enable the me a are selected the AI a more. the orchestrating there world. best Pfizer, new robotic a factory, from wave warehouse, Jaguar of The physical cases data for software car, connects Sony, one just work company touches Zoom progress This companies Disney, a business a Games, new opened We Microsoft, fiction, of building Deloitte, Epic that is Visa, for can't is more forward the created AI in than of learn of a world. and the anybody physical of Hear millions work. phase by our today. NVIDIA and simulation quarter. will AI connected for robotaxis, AI digital We lives' world. who and Today's XD Omniverse at will to to cars made infrastructure have but AI month's science Omniverse. yet robotic. the the their themselves to the of engine quite exciting used The you. chips, updating where platforms, they of robotic chip Omniverse We the of has about frontiers the life nothing next cloud. We simulated is to and Hundreds GTC a that new are cars about Omniverse breakthroughs ever. new look have to progress Mercedes-Benz technologists Internet the real-world on Omniverse. and EV sound conference be robotics Internet robotics people next where Our world. be Land XD

call. conference today's concludes This

You may now disconnect.