NVIDIA (NVDA) Annual Review Q1 2017

“THE AGE OF THE GPU IS UPON US’

THE NEXT PLATFORM

A decade ago, We set out to transform the GPU into a powerful Computing platform-a specialized tool for the da Vincis and Einsteins of our time.

GPU Computing has since opened a floodgate of innovation. From gaming and VR to AI and self-driving car. We’re at the Center of the most promising trends in our lifetime

The world has taken notice

Jensen Huang

CEO and Founder, NVIDIA.

“Nvidia Geforce has moved from graphics card to gaming platform”
Forbes

The PC drives the growth of computer gaming, the largest entertainment industry in the world. The mass popularity of eSports, the evolution of gaming into a social medium, and the advance of new technologies like 4K, HDR, and VR will fuel its further growth.

Today, 200 million gamers play on GeForce, the world’s largest gaming platform. Our breakthrough NVIDIA Pascal architecture delighted gamers, and we built on its foundation with new capabilities, like NVIDIA Ansel, the most advanced in-game photography system ever built. To service the 1 billion new or infrequent gamers whose PCs are not ready for today’s games, we brought the GeForce NOW game streaming service to Macs and PCs.

“The Best Android TV device Just got better”
Engadget
NVIDIA Shield TV, controller, and remote

NVIDIA Shield is taking NVIDIA gaming and AI into living rooms around the world. The most advanced streamer now boasts 1000 games, has the largest open catalog of media in 4k, and can serve as the brain of the AI home. NVIDIA SPOT, an AI mic accessory, extends SHIELDS’s intelligent control throughout the house.

“NVIDIA Takes virtual reality one step closer to the Holodeck with Iray VR”
Techradar

Nvidia has led the field of visual computing since our invention of the GPU in 1999. VR is the next frontier. NVIIDIA GPUs are the engines that power the new medium and we’re making VR even more immersive with technologies like NVIDIA Iray that bring the physical properties of light and materials into virtual worlds. Iray VR was used in the design of NVIDIA’s new headquarters.

VR Funhouse, an NVIDIA game that brings advanced graphics, haptics, and realistic physics to VR has been dowloaded 200,000 times.

“Nvidia’s insane DGX-1 is a computer Tailor-Made for deep learning”
Engadget

“NVIDIA is not just accelerating AI, it ams to reshape computing”
Forbes

A new era of computing is upon us.

Artificial intelligence amplifies our cognitive abilities-letting us solve problems where the complexity is too great, the information is incomplete or the details are too subtle and require expert training. Learning from data- computer’s version of life experience-is how AI evolves.

GPU deep learning is a new computing model in which deep neural networks are trained to recognize patterns from massive amounts of data.

Every industry has awoken to Al. The world’s leading internet Companies are racing to infuse intelligence into every app. More than 2,000 All startups have cropped up around the World. Healthcare organizations, from the 165-yearold Mount Sinai Hospital to startups like Path AI, are using AI to advance everything from drug discovery to cancer diagnosis. FANUC, the Japanese industrial robotics giant, is building the factory of the future on the NVIDIA AI platform. Hikvision, the World leader in surveillance systems, is using AI to help make cities safer.

And were working with the World’s largest enterprise technology providers so ewery company can tap into the power of GPU deep learning.

NVIDIA D.GX-1, an All supercomputer in a box, delivers the computing power of a 250-node HPC Cluster, reducing deep neural network training time from Weeks to days.

NVIDIA’s Self-Driving Cars will help you drive better, too
The Verge

“THIS IS THE FUTURE OF DRIVNG”

ARS TECHNICA

Autonomous vehicles will modernize the $10 trillion transportation industry but they require an enormous amount of Computing power. NVIDIA DRIVE PX 2 is a scalable AI car supercomputer that spans the entire range of autonomous driving.

Using PX 2, BB8, our research Al Car (pictured here), has learned to drive in all kinds of conditions-on highways and windy roads, through obstacle courses, at night, and in the rain.

nvidia self driving car.png

Every Tesla Motors vehicle now comes equipped with DRIVEPX2 for full self-driving capabilities, and Aud will achieve Level 4 autonomous driving in cars powered by DRIVE PX starting in 2020.

With our Al Co-Pilot capabilities, even when the car’s not driving for you, it can be watching out for you-alerting you to dangerous situations on the road, knowing where you’re looking and reading your tips to understand your commands in noisy situations.

DEAR NVIDIANS AND STAKEHOLDERS

GPU COMPUTING HAS ARRVED.

The tool that We built for the da Vincis and Einsteins of our time is the force behind today’s most promising trends, from gaming and VR to Al and self-driving cars.

We leverage our powerful platform by focusing On the hardest problems that only we can solve. They require deep technical integration, from processor to software to systems to domain expertise. They are worth the efforts of our talented, dedicated employees.

And they matter to the World

OUR COMPANY IS UNIQUE IN ITS EVOLUTION AND MARKET POSITION: OUR STRATEGY IS FIRING ON ALL CYLINDERS.

Revenue was up 38% to reach a record $6.9 billion and gross margins expanded 270 basis points to hit 58.8 percent. GAAP earnings per share were $2.57, up 138 percent. And we returned $1 billion to shareholders through dividends and stock repurchases.

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Our gaming business grew 44% this year to a record $4.1 billion. The breakthrough Pascal architecture solidified our market leadership. And we expanded our platform with solutions to ride the massive Waves of blockbuster games, eSports, and social media.

We continued to lead visual computing, seeing double digit growth in our professional visualization business and advancing the field with our latest Iray and WR technologies.

AI fueled the rapid growth of our data center business, which tripled year over year in the fourth quarter, bringing total annual revenue to $830 million. We
have a multi-year lead in Al computing. We’ve built an end-to-end platform that starts with a GPU optimized for Al. Our single architecture spans Computers of every shape and size-PCs, servers, loT devices-and is available from every cloud service provider-Alibaba, Amazon, Google, IBM, Microsoft. GPU deep learning is the most advanced, most accessible platform for Al.

Adoption of DRIVE PX 2 spurred our multi-year lead in AI Car Computing. Our AI car platform spans the range of autonomous vehicles, from auto-piloted cars to driverless shuttles, from training to cloud mapping to in-car Al capabilities.

Some of the World’s most innovative automakers, the World’s largest auto suppliers, and the leading mapping companies hawe adopted DRIVE PX.

Transformed from chips to platforms and products. Along with our moves to build platforms for select vertical markets, We’ve also evolved from building chips to building systems. NVIDIA SHIELD is one example of this transformation. SHIELD is a tiny supercomputer for the home. It brings NVIDIA’s famed gaming capabilities to the living room, serves up 4 KHDR movies, and is the Al computer that will one day let you talk to and control your home. The DGX-1 Al supercomputer, our main thrust to bring Al to every enterprise, is another example of our systems approach.

Today, NVIDIA is capable of innovating across the entire Computing stack from them most advanced GPUs to innovative systems, from graphics to AI from device to cloud-to serve the most exciting growth industries of our time.

GIVING BACK TO OUR COMMUNITIES

NVIDIANs are passionate about giving back to their communities, with a long history of volunteerism and strong support for fighting cancer and improving education. Our philanthropic giving this year exceeded $5 million.

Our Company regularly receives top marks on prominent lists of the most socially and environmentally responsible companies, including debuting at No. 20 on the 100 Best Corporate Citizens list in 2016.

Our employee-run NVIDIA Foundation sets the priorities for our philanthropic efforts. We have invested more than 53 million in Compute the Cure, which aids researchers using GPU computing techniques to accelerate their cancer-fighting Work as well as nonprofits providing care and support services to those affected by the disease.

This includes $200,000 grants this year to the Translational Genomics Research Institute for research to discover individualized therapeutic vulnerability in cancer, and to a team at the University of North Texas that aims to discower new cancer biomarkers to improve diagnosis and treatment.

With Project Inspire, our employees and their families come together each year
to enhance their local Communities. In Santa Clara, We celebrated our 10th
annual and largest yet event, which brought together 1,650 of us to transform a local high school in an underserved neighborhood. In Pune, India, nearly 200 employees and their families improved a rural high school and junior college. In the U.K., NVIDIANs teamed up to improve a facility for people with learning disabilities.

SHAPING THE FUTURE

NVIDIA is a learning machine. For over two decades, we’ve continuously reinvented ourselves. Our Work today is shaping the industries and society
of tomorrow.

The computing model that we pioneered is at the convergence of visual computing, high performance computing, and AI-technologies that will redefine the relationship between man and machine. The world we inhabit will increasingly be expanded by virtual realities. And our natural abilities will be amplified by artificial intelligence.

This is undoubtedly the most exciting time in our industry. AI will revolutionize the very structure and fabric of society, from transportation to healthcare, and allow us to finally tackle those challenges that matter most, like finding a cure for cancer.

We, at NVIDIA, are seizing the moment.

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