NVIDIA Corporation

How Nvidia makes money

Nvidia designs processors, computing systems, networking products and software. Data-center customers supply most revenue, using its products to train and run artificial intelligence models and other demanding computing tasks.

Latest reported quarter

Data Center revenue was $89.0 billion, compared with $41.1 billion a year earlier. Reported net income included equity-investment gains, which totaled $7.8 billion before tax.

Forecast history

In May, Nvidia forecast fiscal Q2 revenue of $91 billion, plus or minus 2%. The $96.221 billion result exceeded the $92.820 billion upper end by $3.401 billion.

On August 26, Nvidia forecast fiscal Q3 revenue of $108 billion, plus or minus 2%, without assuming Data Center compute sales from China. Results remain scheduled for November 17. The November leadership announcement provided no revised numerical forecast.

Cash generation and borrowing

Operating cash flow was $24.1 billion for the second quarter and $74.4 billion for the first half. At July 26, cash and cash equivalents were $22.443 billion and marketable debt securities $34.143 billion, together $56.586 billion. Equity investments are separate from that total.

Funded debt had a carrying value of $33.366 billion, including $1 billion of short-term debt. These balances are the July 26 financial snapshot.

Separate from funded borrowing, Nvidia reported $279 billion of supply and capacity commitments at July 26. In August it agreed to guarantee up to $105 billion of specified lease and power payments at an SB Energy campus for OpenAI. The guarantees generally take effect as each phase's lease starts, with the first expected in fiscal 2029, and payments would be triggered by certain tenant defaults.

November leadership changes

The board accepted co-founder Jensen Huang's resignation as president, CEO and director on November 11, effective immediately. Colette M. Kress, CFO since 2013, became interim CEO and retains her finance role. The company is searching for a permanent successor. Longtime director Harvey C. Jones became board chair.

The board announced an independent inquiry on November 8 following reporting that Huang had been the target of a foreign intelligence effort. It said at that time it had no reason to believe national security or company secrets were compromised. Independent directors retained outside counsel, as announced November 10. The transition release gave no reason for the resignation or investigation findings.

Our report on the leadership handover explains Kress's two roles and the timing before earnings.