NVIDIA Corporation Q1 2026 Earnings Call

00:14 Sarah (Operator): All lines have been placed on mute to prevent any background noise.

00:18 Sarah (Operator): After the speaker's remarks, there will be a question and answer session.

00:21 Sarah (Operator): If you would like to ask a question during this time, simply press star one on your telephone keypad.

00:28 Sarah (Operator): If you would like to withdraw your question, please press star one again.

00:31 Sarah (Operator): Thank you.

00:33 Sarah (Operator): Toshiya Hari, you may begin your conference.

00:37 Toshiya Hari: Thank you.

00:38 Toshiya Hari: Good afternoon, everyone, and welcome to Nvidia's conference call for the first quarter of fiscal 2026.

00:44 Toshiya Hari: With me today from Nvidia are Jensen Wong, president and chief executive officer, and Colette Kress, executive vice president and chief financial officer.

00:54 Toshiya Hari: I'd like to remind you that our call is being webcast live on Nvidia's investor relations website.

01:00 Toshiya Hari: The webcast will be available for replay until the conference call to discuss our financial results for the second quarter of fiscal 2026.

01:08 Toshiya Hari: The content of today's call is Nvidia's property.

01:12 Toshiya Hari: It can't be reproduced or transcribed without our prior written consent.

01:16 Toshiya Hari: During this call, we may make forward-looking statements based on current expectations.

01:22 Toshiya Hari: These are subject to a number of significant risks and uncertainties, and our actual results may differ materially.

01:29 Toshiya Hari: For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release, our most recent forms 10K and 10Q, and the reports that we may file on form 8K with the Securities and Exchange Commission.

01:45 Toshiya Hari: All our statements are made as of today, May 28th, 2025, based on information currently available to us.

01:53 Toshiya Hari: Except as required by law, we assume no obligation to update any such statements.

01:58 Toshiya Hari: During this call, we will discuss non-GAAP financial measures.

02:02 Toshiya Hari: You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website.

02:10 Toshiya Hari: With that, let me turn the call over to Colette.

02:13 Colette Kress: Thank you, Toshiya.

02:15 Colette Kress: We delivered another strong quarter with revenue of 44 billion, up 69% year over year, exceeding our outlook in what proved to be a challenging operating environment.

02:28 Colette Kress: Data center revenue of 39 billion grew 73% year-on-year.

02:33 Colette Kress: AI workloads have transitioned strongly to inference, and AI factory buildouts are driving significant revenue.

02:41 Colette Kress: Our customers' commitments are firm.

02:46 Colette Kress: On April 9th, the US government issued new export controls on H20, our data center GPU designed specifically for the China market.

02:56 Colette Kress: We sold H20 with the approval of the previous administration.

03:01 Colette Kress: Although our H20 has been in the market for over a year and does not have a market outside of China, the new export controls on H20 did not provide a grace period to allow us to sell through our inventory.

03:15 Colette Kress: In Q1, we recognized 4.6 billion in H20 revenue, which occurred prior to April 9th.

03:24 Colette Kress: But also recognized a 4.5 billion charge as we wrote down inventory and purchase obligations tied to orders we had received prior to April 9th.

03:37 Colette Kress: We were unable to ship 2.5 billion in H20 revenue in the first quarter due to the new export controls.

03:46 Colette Kress: The 4.5 billion charge was less than what we initially anticipated as we were able to reuse certain materials.

03:54 Colette Kress: We are still evaluating our limited options to supply data center compute products compliant with the US government's revised export control rules.

04:04 Colette Kress: Losing access to the China AI accelerator market, which we believe will grow to nearly 50 billion, would have a material adverse impact on our business going forward and benefit our foreign competitors in China and worldwide.

04:22 Colette Kress: Our Blackwell ramp, the fastest in our company's history, drove a 73% year-on-year increase in data center revenue.

04:31 Colette Kress: Blackwell contributed nearly 70% of data center compute revenue in the quarter with a transition from Hopper nearly complete.

04:40 Colette Kress: The introduction of GB 200 NBL was a fundamental architectural change to enable data center scale workloads and to achieve the lowest cost per inference token.

04:53 Colette Kress: While these systems are complex to build, we have seen a significant improvement in manufacturing yield and rack shipments are moving to strong rates to end customers.

05:05 Colette Kress: GB 200 NBL racks are now generally available for model builders, enterprises and sovereign customers to develop and deploy AI.

05:15 Colette Kress: On average, major hyperscalers are each deploying nearly 1,000 NBL 72 racks or 72,000 Blackwell GPUs per week and are on track to further ramp output this quarter.

05:33 Colette Kress: Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB 200s with Open AI as one of its key customers.

05:47 Colette Kress: Key learnings from the GB 200 ramp will allow for a smooth transition to the next phase of our product road map, Blackwell Ultra.

05:57 Colette Kress: Sampling of GB 300 systems began earlier this month at the major CSPs and we expect production shipments to commerce later this quarter.

06:10 Colette Kress: GB 300 will leverage the same architecture, same physical footprint and the same electrical and mechanical specifications as GB 200.

06:21 Colette Kress: The GB 300 drop-in design will allow CSPs to seamlessly transition their systems and manufacturing used for GB 200 while maintaining high yields.

06:34 Colette Kress: B300 GPUs with 50% more HBM will deliver another 50% increase in dense FP4 inference compute performance compared to the B200.

06:47 Colette Kress: We remain committed to our annual product cadence with our road map extending through 2028 tightly aligned with the multiple year planning cycles of our customers.

07:01 Colette Kress: We are witnessing a sharp jump in inference demand.

07:05 Colette Kress: Open AI, Microsoft and Google are seeing a step function leap in token generation.

07:12 Colette Kress: Microsoft processed over 100 trillion tokens in Q1, a five-fold increase on a year-over-year basis.

07:21 Colette Kress: This exponential growth in Azure Open AI is representative of strong demand for Azure AI foundry as well as other AI services across Microsoft's platform.

07:33 Colette Kress: Inference serving startups are now serving models using B200, tripling their token generation rate and corresponding revenues for high value reasoning models such as Deepseek R1, as reported by artificial analysis.

07:52 Colette Kress: Nvidia Dynamo on Blackwell NBL 72 turbo charges AI inference throughput by 30X for the new reasoning models sweeping the industry.

08:05 Colette Kress: Developer engagements increased with adoption ranging from LLM providers such as perplexity to financial services institutions such as Capital One, who reduced agentic chatbot latency by 5X with Dynamo.

08:23 Colette Kress: In the latest MLPerf inference results, we submitted our first results using GB 200 NBL 72, delivering up to 30X higher inference throughput compared to our 8 GPU H200 submission on the challenging Llama 3.1 benchmark.

08:43 Colette Kress: This feat was achieved through a combination of tripling the performance per GPU as well as 9X more GPUs, all connected on a single NV link domain.

08:55 Colette Kress: And while Blackwell is still early in its life cycle, software optimizations have already improved its performance by 1.5X in the last month alone.

09:07 Colette Kress: We expect to continue improving the performance of Blackwell through its operational life as we have done with Hopper and Amper.

09:15 Colette Kress: For example, we increased the inference performance of Hopper by four times over two years.

09:20 Colette Kress: This is the benefit of Nvidia's programmable CUDA architecture and rich ecosystem.

09:28 Colette Kress: The pace and scale of AI factory deployments are accelerating with nearly 100 Nvidia powered AI factories in flight this quarter, a twofold increase year-over-year with the average number of GPUs powering each factory also doubling in the same period.

09:47 Colette Kress: And more AI factory projects are starting across industries and geographies.

09:52 Colette Kress: Nvidia's full stack architecture is underpinning AI factory deployments as industry leaders like AT&T, BYD, Capital One, Foxconn, Mediatech and Telenor are strategically vital sovereign clouds like those recently announced in Saudi Arabia, Taiwan and the UAE.

10:14 Colette Kress: We have a line of sight to projects requiring tens of gigawatts of Nvidia AI infrastructure in the not too distant future.

10:24 Colette Kress: The transition from generative to agentic AI, AI capable of perceiving, reasoning, planning and acting will transform every industry, every company and country.

10:39 Colette Kress: We envision AI agents as a new digital workforce capable of handling tasks ranging from customer service to complex decision-making processes.

10:51 Colette Kress: We introduced the Llama Nemotron family of open reasoning models designed to supercharge agentic AI platforms for enterprises.

11:01 Colette Kress: Built on the Llama architecture, these models are available as NMs or Nvidia inference microservices with multiple sizes to meet diverse deployment needs.

11:13 Colette Kress: Our post-training enhancements have yielded a 20% accuracy boost and a 5X increase in inference speed.

11:21 Colette Kress: Leading platform companies including Accenture, Cadence, Deloitte and Microsoft are transforming work with our reasoning models.

11:31 Colette Kress: Nvidia Nemo microservices are generally available across industries and are being leveraged by leading enterprises to build, optimize and scale AI applications.

11:43 Colette Kress: With Nemo, Cisco increased model accuracy by 40% and improved response time by 10X in its code assistant.

11:52 Colette Kress: Nasdaq realized a 30% improvement in accuracy and response time in its AI platforms search capabilities.

11:59 Colette Kress: And Shell's custom LLM achieved a 30% increase in accuracy when trained with Nvidia Nemo.

12:07 Colette Kress: Nemo's parallelism techniques accelerated model training time by 20% when compared to other frameworks.

12:16 Colette Kress: We also announced a partnership with Yum Brands, the world's largest restaurant company to bring Nvidia AI to 500 of its restaurants this year and expanding to 61,000 restaurants over time to streamline order taking, optimize operations and enhance service across its restaurants.

12:38 Colette Kress: For AI powered cybersecurity, leading companies like Checkpoint, Cloudstrike and Palaton Networks are using Nvidia's AI security and software stack to build, optimize and secure agentic workflows with Cloudstrike realizing 2X faster detection triage with 50% less compute cost.

13:01 Colette Kress: Moving to networking, sequential growth in networking resumed in Q1 with revenue up 64% quarter over quarter to 5 billion.

13:11 Colette Kress: Our customers continue to leverage our platform to efficiently scale up and scale out AI factory workloads.

13:19 Colette Kress: We created the world's fastest switch, NV link.

13:23 Colette Kress: For scale up, our NV link compute fabric in its fifth generation offers 14X the bandwidth of PCIE Gen 5.

13:34 Colette Kress: NV link 72 carries 130 terabytes per second of bandwidth in a single rack, equivalent to the entirety of the world's peak internet traffic.

13:46 Colette Kress: NV link is a new growth vector and is off to a great start with Q1 shipments exceeding a billion dollars.

13:55 Colette Kress: At Computex, we announced NV link fusion.

13:59 Colette Kress: Hyperscale customers can now build semi-custom CCUs and accelerators that connect directly to the Nvidia platform with NV link.

14:09 Colette Kress: We are now enabling key partners including ASIC providers such as Mediatech, Marvel, Alchip Technologies and Astera Labs, as well as CPU suppliers such as Fujitsu and Qualcomm to leverage NV link fusion to connect our respective ecosystems.

14:28 Colette Kress: For scale out, our enhanced Ethernet offerings deliver the highest throughput, lowest latency networking for AI.

14:38 Colette Kress: Spectrum X posted strong sequential and year-on-year growth and is now annualizing over 8 billion in revenue.

14:46 Colette Kress: Adoption is widespread across major CSPs and consumer internet companies, including Coreweave, Microsoft Azure, Oracle Cloud and XAI.

14:56 Colette Kress: This quarter, we added Google Cloud and Meta to the growing list of Spectrum X customers.

15:04 Colette Kress: We introduced Spectrum X and Quantum X silicon photonics switches featuring the world's most advanced co-package optics.

15:14 Colette Kress: These platforms will enable next level AI factory scaling to millions of GPUs through the increasingly power efficiency by 3.5X and network resiliency by 10X while accelerating customer time to market by 1.3X.

15:34 Colette Kress: Transitioning to a quick summary of our revenue by geography.

15:38 Colette Kress: China as a percentage of our data center revenue was slightly below our expectations and down sequentially due to H20 export licensing controls.

15:49 Colette Kress: For Q2, we expect a meaningful decrease in China data center revenue.

15:55 Colette Kress: As a reminder, while Singapore represented nearly 20% of our Q1 build revenue, as many of our large customers use Singapore for centralized invoicing, our products are almost always shipped elsewhere.

16:11 Colette Kress: Note that over 99% of H100, H200 and Blackwell data center compute revenue build to Singapore was for orders from US-based customers.

16:24 Colette Kress: Moving to gaming and AI PCs.

16:28 Colette Kress: Gaming revenue was a record 3.8 billion, increasing 48% sequentially and 42% year-on-year.

16:36 Colette Kress: Strong adoption by gamers, creatives and AI enthusiasts have made Blackwell our fastest ramp ever.

16:43 Colette Kress: Against a backdrop of robust demand, we greatly improved our supply and availability in Q1 and expect to continue these efforts in Q2.

16:52 Colette Kress: AI is transforming PC and creator and gamers.

16:57 Colette Kress: With a 100 million user installed base, GeForce represents the largest footprint for PC developers.

17:05 Colette Kress: This quarter, we added to our AI PC laptop offerings including models capable of running Microsoft's co-pilot Plus.

17:15 Colette Kress: This past quarter, we brought Blackwell architecture to mainstream gaming with its launch of GeForce RTX 5060 and 5060 Ti starting at just $299.

17:30 Colette Kress: The RTX 5060 also debuted in laptops starting at $1,099.

17:37 Colette Kress: These systems that double the frame rate and slash latency.

17:41 Colette Kress: These GeForce RTX 5060 and 5060 Ti desktop GPUs and laptops are now available.

17:51 Colette Kress: In console gaming, the recently unveiled Nintendo Switch 2 leverages Nvidia's neuro rendering and AI technologies, including next generation custom RTX GPUs with DLSS technology to deliver a giant leap in gaming performance to millions of players worldwide.

18:10 Colette Kress: Nintendo has shipped over 150 million switch consoles to date, making it one of the most successful gaming systems in history.

18:21 Colette Kress: Moving to Pro visualization, revenue of 509 million was flat sequentially and up 19% year-on-year.

18:28 Colette Kress: Tariff related uncertainty temporarily impacted Q1 systems.

18:33 Colette Kress: And demand for our AI workstations is strong and we expect sequential revenue growth to resume in Q2.

18:41 Colette Kress: Nvidia DGX Spark and station revolutionize personal computing by putting the power of an AI supercomputer in a desktop form factor.

18:51 Colette Kress: DGX Spark delivers up to one petaflop of AI compute while DGX station offers an incredible 20 petaflops and is powered by the GB 300 superchip.

19:04 Colette Kress: DGX Spark will be available in calendar Q3 and DGX station later this year.

19:11 Colette Kress: We have deepened Omniverse's integration and adoption into some of the world's leading software platforms including Databricks, SAP and Schneider Electric.

19:23 Colette Kress: New Omniverse blueprints such as Mega for at scale robotic fleet management are being leveraged in Kion Group, Pegatron, Accenture and other leading companies to enhance industrial operations.

19:38 Colette Kress: At Computex, we showcased Omniverse's great traction with technology manufacturing leaders including TSMC, Quanta, Foxconn, Pegatron.

19:49 Colette Kress: Using Omniverse, TSMC saves months in work by designing fabs virtually.

19:55 Colette Kress: Foxconn accelerates thermal simulations by 150X and Pegatron reduces assembly line defects rates by 67%.

20:06 Colette Kress: Lastly with our automotive group, revenue was 567 million, down 1% sequentially but up 72% year-on-year.

20:14 Colette Kress: Year-on-year growth was driven by the ramp of self-driving across a number of customers and robust end demand for NEVs.

20:22 Colette Kress: We are partnering with GM to build the next gen vehicles, factories and robots using Nvidia AI, simulation and accelerated computing.

20:33 Colette Kress: And we are now in production with our full stack solution for Mercedes-Benz, starting with the new CLA, hitting roads in the next few months.

20:42 Colette Kress: We announced Isaac Groot N1, the world's first open, fully customizable foundation model for humanoid robots, enabling generalized reasoning and skill development.

20:55 Colette Kress: We also launched new open Nvidia Cosmo World Foundation models.

21:00 Colette Kress: Leading companies include 1X, agility robots, robotics, figure AI, Uber and Wabi.

21:09 Colette Kress: We've begun integrating Cosmos into their operations for synthetic data generation, while agility robotics, Boston Dynamics and Xpen robotics are harnessing Isaac simulation to advance their humanoid efforts.

21:25 Colette Kress: GE Healthcare is using the new Nvidia Isaac platform for healthcare simulation, built on Nvidia Omniverse and using Nvidia Cosmos.

21:35 Colette Kress: The platform speeds development of robotic imaging and surgery systems.

21:41 Colette Kress: The era of robotics is here.

21:44 Colette Kress: Billions of robots, hundreds of millions of autonomous vehicles and hundreds of thousands of robotic factories and warehouses will be developed.

21:54 Colette Kress: All right, moving to the rest of the P&L.

21:57 Colette Kress: Gap gross margins and non-gap gross margins were 60.5% and 61% respectively.

22:04 Colette Kress: Excluding the 4.5 billion charge, Q1 non-gap gross margins would have been 71.3, slightly below above our outlook at the beginning of the quarter.

22:16 Colette Kress: Sequentially, GAAP operating expenses were up 7% and non-GAAP operating expenses were up 6%, reflecting higher compensation and employee growth.

22:26 Colette Kress: Our investments include expanding our infrastructure capabilities and AI solutions, and we plan to grow these investments throughout the fiscal year.

22:35 Colette Kress: In Q1, we returned a record 14.3 billion to shareholders in the form of share repurchases and cash dividends.

22:43 Colette Kress: Our capital return program continues to be a key element of our capital allocation strategy.

22:50 Colette Kress: Let me turn to the outlook for the second quarter.

22:54 Colette Kress: Total revenue is expected to be 45 billion, plus or minus 2%.

22:59 Colette Kress: We expect modest sequential growth across all of our platforms.

23:04 Colette Kress: In data center, we anticipate the continued ramp of Blackwell to be partially offset by a decline in China revenue.

23:12 Colette Kress: Note, our outlook reflects a loss in H20 revenue of approximately $8 billion for the second quarter.

23:23 Colette Kress: GAAP and non-GAAP gross margins are expected to be 71.8% and 72% respectively, plus or minus 50 basis points.

23:34 Colette Kress: We expect better Blackwell profitability to drive modest sequential improvement in gross margins.

23:39 Colette Kress: We are continuing to work towards achieving gross margins in the mid 70s range late this year.

23:47 Colette Kress: GAAP and non-GAAP operating expenses are expected to be approximately 5.7 billion and 4 billion respectively, and we continue to expect full year fiscal year 26 operating expense growth to be in the mid 30% range.

24:04 Colette Kress: GAAP and non-GAAP other income and expenses are expected to be an income of approximately 450 million, excluding gains and losses from non-marketable and publicly held equity securities.

24:17 Colette Kress: GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any discrete items.

24:28 Colette Kress: Further financial details are included in the CFO commentary and other information available on our IR website, including a new financial information AI agent.

24:40 Colette Kress: Let me highlight upcoming events for the financial community.

24:44 Colette Kress: We will be at the B of A Global Technology Conference in San Francisco on June 4th.

24:48 Colette Kress: The Rosenblatt virtual AI Summit and Nasdaq investor conference in London on June 10th, and GTC Paris at Vivatech on June 11th in Paris.

25:00 Colette Kress: We look forward to seeing you at these events.

25:03 Colette Kress: Our earnings call to discuss the results of our second quarter of fiscal 2026 is scheduled for August 27.

25:12 Colette Kress: Well, now let me turn it over to Jensen to make some remarks.

25:18 Jensen Huang: Thanks, Colette.

25:19 Jensen Huang: We've had a busy and productive year.

25:21 Jensen Huang: Let me share my perspective on some topics we're frequently asked.

25:27 Jensen Huang: On export control.

25:29 Jensen Huang: China is one of the world's largest AI markets and a springboard to global success.

25:36 Jensen Huang: With half of the world's AI researchers based there, the platform that wins China is positioned to lead globally.

25:44 Jensen Huang: Today, however, the $50 billion China market is effectively closed to US industry.

25:52 Jensen Huang: The H20 export ban ended our Hopper data center business in China.

25:58 Jensen Huang: We cannot reduce Hopper further to comply.

26:01 Jensen Huang: As a result, we are taking a multi-billion dollar write-off on inventory that cannot be sold or repurposed.

26:09 Jensen Huang: We are exploring limited ways to compete, but Hopper is no longer an option.

26:16 Jensen Huang: China's AI moves on with or without US chips.

26:20 Jensen Huang: It has the compute to train and deploy advanced models.

26:25 Jensen Huang: The question is not whether China will have AI.

26:28 Jensen Huang: It already does.

26:30 Jensen Huang: The question is whether one of the world's largest AI markets will run on American platforms.

26:36 Jensen Huang: Shielding Chinese chip makers from US competition only strengthens them abroad and weakens America's position.

26:44 Jensen Huang: Export restrictions have spurred China's innovation and scale.

26:49 Jensen Huang: The AI race is not just about chips.

26:53 Jensen Huang: It's about which stack the world runs on.

26:56 Jensen Huang: As that stack grows to include 6G and quantum, US global infrastructure leadership is at stake.

27:04 Jensen Huang: The US has based its policy on the assumption that China cannot make AI chips.

27:10 Jensen Huang: That assumption was always questionable, and now it's clearly wrong.

27:15 Jensen Huang: China has enormous manufacturing capability.

27:19 Jensen Huang: In the end, the platform that wins the AI developers win AI, wins AI.

27:26 Jensen Huang: Export controls should strengthen US platforms, not drive half of the world's AI talent to rivals.

27:35 Jensen Huang: On Deepseek.

27:37 Jensen Huang: Deepseek and Qwen from China are among the most among the best open source AI models.

27:45 Jensen Huang: Released freely, they've gained traction across the US, Europe and beyond.

27:51 Jensen Huang: Deepseek R1, like Chat GPT, introduced reasoning AI that produces better answers the longer it thinks.

28:00 Jensen Huang: Reasoning AI enables step-by-step problem solving, planning and tool use, turning models into intelligent agents.

28:10 Jensen Huang: Reasoning is compute intensive, requires hundreds to thousands more thousands of times more tokens per task than previous one-shot inference.

28:25 Jensen Huang: Reasoning models are driving a step function surge in inference demand.

28:31 Jensen Huang: AI scaling laws remain firmly intact, not only for training, but now inference too, requires massive scale compute.

28:41 Jensen Huang: Deepseek also underscores the strategic value of open source AI.

28:46 Jensen Huang: When popular models are trained and optimized on US platforms, it drives usage, feedback and continuous improvement, reinforcing American leadership across the stack.

28:57 Jensen Huang: US platforms must remain the preferred platform for open source AI.

29:03 Jensen Huang: That means supporting collaboration with top developers globally, including in China.

29:09 Jensen Huang: America wins when models like Deepseek and Qwen runs best on American infrastructure.

29:17 Jensen Huang: Regarding onshore manufacturing.

29:20 Jensen Huang: President Trump has outlined a bold vision to reshore advanced manufacturing, create jobs and strengthen national security.

29:30 Jensen Huang: Future plants will be highly computerized and robotics.

29:34 Jensen Huang: We share this vision.

29:37 Jensen Huang: TSMC is building six fabs and two advanced packaging plants in Arizona to make chips for Nvidia.

29:44 Jensen Huang: Process qualification is underway with volume production expected by year end.

29:49 Jensen Huang: Spill and Amcore are also investing in Arizona, constructing packaging, assembly and test facilities.

29:58 Jensen Huang: in Houston.

29:59 Jensen Huang: We're partnering with Foxconn to construct a million square foot factory to build AI supercomputers.

30:06 Jensen Huang: Wistron is building a similar plant in Fort Worth, Texas.

30:11 Jensen Huang: To encourage and support these investments, we've made substantial long-term purchase commitments, a deep investment in America's AI manufacturing future.

30:22 Jensen Huang: Our goal, from chip to supercomputer, built in America within a year.

30:30 Jensen Huang: Each GB200 NVLink 72 racks contains 1.2 million components and weighs nearly 2 tons.

30:40 Jensen Huang: No one has produced supercomputers on this scale.

30:44 Jensen Huang: Our partners are doing an extraordinary job.

30:48 Jensen Huang: On AI diffusion rule.

30:52 Jensen Huang: President Trump rescinded the AI diffusion rule, calling it counterproductive.

30:58 Jensen Huang: and proposed a new policy to promote US AI tech with trusted partners.

31:04 Jensen Huang: On his Middle East tour, he announced historic investments.

31:08 Jensen Huang: I was honored to join him in announcing a 500 megawatt AI infrastructure project in Saudi Arabia and a 5 gigawatt AI campus in the UAE.

31:20 Jensen Huang: President Trump wants US tech to lead.

31:24 Jensen Huang: The deals he announced are wins for America, creating jobs, advancing infrastructure, generating tax revenue, and reducing the US trade deficit.

31:36 Jensen Huang: The US will always be Nvidia's largest market and home to the largest install base of our infrastructure.

31:43 Jensen Huang: Every nation now sees AI as core to the next industrial revolution.

31:50 Jensen Huang: A new industry that produces intelligence and essential infrastructure for every economy.

31:56 Jensen Huang: Countries are racing to build national AI platforms to elevate their digital capabilities.

32:02 Jensen Huang: At Computex, we announced Taiwan's first AI factory in partnership with Foxconn and the Taiwan government.

32:11 Jensen Huang: Last week, I was in Sweden to launch its first national AI infrastructure.

32:16 Jensen Huang: Japan, Korea, India, Canada, France, the UK, Germany, Italy, Spain, and more are now building national AI factories to empower startups, industries, and societies.

32:31 Jensen Huang: Sovereign AI is a new growth engine for Nvidia.

32:37 Jensen Huang: Colette, back to you.

32:38 Jensen Huang: Thank you.

32:40 Sarah (Operator): Operator, we will now open the call for questions.

32:42 Sarah (Operator): Would you please poll for questions?

32:46 Sarah (Operator): Thank you.

32:47 Sarah (Operator): At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad.

32:54 Sarah (Operator): We'll pause for just a moment to compile the Q&A roster.

33:02 Sarah (Operator): Your first question comes from the line of Joe Moore with Morgan Stanley.

33:07 Sarah (Operator): Your line is open.

33:10 Joe Moore: Great, thank you.

33:11 Joe Moore: Um, you guys have talked about this scaling up of inference around reasoning models for, you know, at least a year now.

33:18 Joe Moore: And we've really seen that come to fruition as you talked about.

33:20 Joe Moore: We've heard it from your customers.

33:22 Joe Moore: Can you give us a sense for how much of that demand, you know, you're able to serve and give us a sense for maybe how big the inference business is for you guys and, you know, do we need full, full on NVL 72 rack scale solutions for reasoning inference going forward?

33:39 Jensen Huang: Well, we would like to serve all of it.

33:42 Jensen Huang: And and I think we're on track to serve most of it.

33:49 Jensen Huang: Uh, Grace Blackwell NVLink 72 is the ideal engine today, the ideal computer thinking machine if you will, for reasoning AI.

34:02 Jensen Huang: There's a couple of reasons for that.

34:04 Jensen Huang: Uh the first reason is that the token generation amount, the number of tokens reasoning goes through is a hundred, a thousand times more than a one shot chatbot.

34:20 Jensen Huang: You know, it's essentially thinking to itself, breaking down a problem step-by-step.

34:25 Jensen Huang: It might be planning multiple paths to an answer.

34:30 Jensen Huang: It's could be using tools, reading PDFs, reading web pages, watching videos.

34:39 Jensen Huang: Um, and uh, and then producing a a result, an answer.

34:45 Jensen Huang: The the longer it thinks, the better the answer, the smarter the answer is.

34:50 Jensen Huang: And so what we would like to do, um, and the reason why Grace Blackwell was designed to give such a giant step up in inference performance is so that you could do all this and still get a response as quickly as possible.

35:06 Jensen Huang: Uh, compared to Hopper, Grace Blackwell is some 40 times higher speed and throughput compared.

35:16 Jensen Huang: And so, uh, this is going to be a huge, huge benefit and driving down the cost while, uh, improving the quality of response with excellent quality of service at the same time.

35:32 Jensen Huang: So that's, that's the fundamental reason, that was the core driving reason for Grace Blackwell NVLink 72.

35:39 Jensen Huang: Of course, of course, in order to do that, uh, we had to reinvent, literally redesign the entire, uh, way that these supercomputers are built.

35:51 Jensen Huang: And, and um, uh, but now we're in full production.

35:56 Jensen Huang: Uh, it is, it's going to be exciting, it's going to be incredibly exciting.

36:04 Sarah (Operator): The next question comes from Vivek Arya with Bank of America Securities.

36:10 Sarah (Operator): Your line is open.

36:12 Vivek Arya: Uh, thanks for the question.

36:13 Vivek Arya: Just a clarification for Colette first.

36:16 Vivek Arya: Um, so on the China impact, I think previously it was mentioned at at about 15 billion dollars, so you had the 8 billion in Q2.

36:24 Vivek Arya: So is there still some uh left as a headwind for the remaining quarters just to help us model that?

36:30 Vivek Arya: Um and then question Jensen for you, uh back at GTC, you had outlined a path towards almost a trillion dollars of of AI uh spending uh over the next uh few years.

36:41 Vivek Arya: Where are we in in that uh build out?

36:44 Vivek Arya: And and do you think it's going to be uniform that you will see every uh spender, whether it's CSP, sovereigns, enterprises, all all build out?

36:52 Vivek Arya: Should we expect some periods of digestion in between?

36:54 Vivek Arya: Just what are your customer discussions telling you about uh how to model growth for next year?

37:03 Colette Kress: Yes, Vivek, thanks so much for the question uh regarding uh H20.

37:08 Colette Kress: Yes, we recognized uh 4.6 H20 in Q1.

37:12 Colette Kress: Uh we were unable to ship uh two and a half billion, so the total for Q1 should have been 7 billion.

37:21 Colette Kress: Uh when we look at our Q2, our Q2, um is going to be meaningfully down in terms of China data center revenue.

37:28 Colette Kress: And we had highlighted in terms of the amount of orders uh that we had uh planned uh for H20 in Q2.

37:36 Colette Kress: And that was 8 billion.

37:38 Colette Kress: Now, going forward, we did um have other orders uh going forward, um, uh that we will not be able to fulfill.

37:46 Colette Kress: That is what was incorporated therefore in the amount that we wrote down of the 4.6 um, uh 4.5 billion dollars.

37:55 Colette Kress: That write down was um about inventory and purchase commitments, and our purchase commitments were about what we expected regarding the orders that we had received.

38:07 Colette Kress: Going forward though, it's um, uh a bigger issue regarding the amount of the market that we will not be able to serve.

38:15 Colette Kress: Uh we assess that TAM to be close to about 50 billion um in the future, um, as we don't have a product uh to enable for the China.

38:28 Jensen Huang: Uh, Vivek, the um, the the probably the best way to think through it is that AI is several things.

38:37 Jensen Huang: You know, of course we know that AI is this incredible technology that's going to transform uh every industry.

38:46 Jensen Huang: You know, from of course the way we do software to to uh healthcare and financial services to, you know, retail, to to uh, I guess every industry, transportation, manufacturing.

39:03 Jensen Huang: And and we're at the beginning of that.

39:06 Jensen Huang: Um, but maybe, maybe another way to think about that is is where do we need intelligence?

39:12 Jensen Huang: Where do we need digital intelligence?

39:14 Jensen Huang: And and it's in every country, it's in every industry.

39:17 Jensen Huang: And we now, we now because of that, we recognize that AI is also an infrastructure.

39:24 Jensen Huang: It's a, it's a way of developing a technology, delivering a technology that requires factories.

39:31 Jensen Huang: And these factories produce tokens.

39:34 Jensen Huang: And they, as I mentioned, are important to every single industry and every single country.

39:39 Jensen Huang: And so on that basis, we're really at the very beginning of it because the adoption of this technology is really kind of in its early, early stages.

39:49 Jensen Huang: Now we've reached an extraordinary milestone with AIs that are reasoning, are thinking.

39:56 Jensen Huang: Uh what people call inference time scaling.

39:59 Jensen Huang: You know, of course it created a a whole new um, uh we've entered an era where where inference is going to be a significant part of the compute workload.

40:13 Jensen Huang: Um, but anyhow, you're it's going to be a new infrastructure.

40:17 Jensen Huang: And uh, we're building it out in the clouds.

40:20 Jensen Huang: The United States is is really the the the early starter and um, available in US clouds and this is our largest market, our largest install base and we'll continue to see that happening.

40:34 Jensen Huang: Uh, but beyond that, uh, we're going to have to, we're going to see AI go into enterprise, which is on prem.

40:41 Jensen Huang: Because so much of the data is still on prem, access control is really important.

40:46 Jensen Huang: Um, it's really hard to to move all of every company's data into the cloud.

40:51 Jensen Huang: And so we're going to move AI into the enterprise.

40:55 Jensen Huang: And you you saw that we announced a couple of really exciting new products.

41:00 Jensen Huang: Uh our RTX Pro enterprise AI server that runs everything enterprise and AI.

41:08 Jensen Huang: Um our our uh DGX Spark and DGX station, which is designed for uh developers who want to work on prem.

41:16 Jensen Huang: And so, uh, enterprise AI is is uh just taking off.

41:21 Jensen Huang: Uh Telcos, uh, today, a lot of the Telco infrastructure uh will be in the future software defined and built on AI.

41:30 Jensen Huang: And so 6G is going to be built on AI.

41:33 Jensen Huang: And that infrastructure needs to be built out and it's at its very, very early stages.

41:38 Jensen Huang: And then of course, every factory today that makes things uh will have an AI factory that sits with it.

41:45 Jensen Huang: And uh the AI factory is going to be uh driving creating AI and and um operating AI for the factory itself, but also to power the products and the things that are made by the factory.

41:59 Jensen Huang: So it's very clear that every car company will have AI factories and uh very soon there'll be robotics companies, robot companies, and those companies will be uh also building AIs to uh uh drive their robots.

42:14 Jensen Huang: And so we're at the beginning of all of this build out.

42:22 Sarah (Operator): Your next question comes from CJ Muse with Cantor Fitzgerald.

42:27 Sarah (Operator): Your line is open.

42:29 CJ Muse: Yeah, good afternoon.

42:29 CJ Muse: Thank you for taking the question.

42:31 CJ Muse: Um, there have been many large GPU cluster investment announcements in the last month and you alluded to, you know, a few of them with Saudi Arabia, the UAE, uh, and then also, you know, we heard from Oracle and xAI just to name a few.

42:43 CJ Muse: So, my my question, are there other um that have yet to be announced of of the same kind of scale and magnitude and and perhaps more importantly, how how are these orders impacting your lead times for Blackwell uh and your current visibility sitting here today, you know, almost halfway through 2025?

43:03 Jensen Huang: Well, we have more orders today than we did at the last at the last time I spoke about orders at GTC.

43:11 Jensen Huang: Um, uh, however, uh, we're also uh increasing our supply chain and building out our supply chain.

43:19 Jensen Huang: They're doing a fantastic job.

43:21 Jensen Huang: Uh we're building it here on shore in the United States.

43:25 Jensen Huang: Uh but we're going to keep our supply chain uh quite busy for several many more years coming.

43:33 Jensen Huang: And um, uh, uh, with respect to, with respect to um, uh, further announcements, I'm going to be on the road next week through Europe.

43:44 Jensen Huang: And uh, it's, it's uh, uh, just about every country needs to build out AI infrastructure and they're, they're umteen AI factories uh being planned.

43:59 Jensen Huang: We're, I think, I think um, in the remarks, uh, Colette mentioned there's some 100 AI factories being built.

44:09 Jensen Huang: Um, uh, there's a whole bunch that haven't been announced.

44:12 Jensen Huang: Uh, and um, I think the important concept here, uh, which makes it, makes it, you know, easier to understand is that like, like other technologies that impact literally every single industry, uh, of course electricity was one and it became infrastructure.

44:32 Jensen Huang: Of course, the information infrastructure which which we now know as the internet affects every single industry, every country, every society.

44:42 Jensen Huang: Intelligence is surely one of those things.

44:46 Jensen Huang: Um, I don't know any company, industry, country who who thinks that intelligence is optional.

44:52 Jensen Huang: Um it's essential infrastructure.

44:54 Jensen Huang: And so we've now digitalized intelligence.

45:00 Jensen Huang: Um, and and so I, I think we're, we're clearly in the beginning of a of the the build out of this infrastructure.

45:08 Jensen Huang: And uh, every, every country will have it.

45:11 Jensen Huang: Uh I'm certain of that.

45:13 Jensen Huang: Every industry will use it.

45:14 Jensen Huang: That I'm certain of.

45:16 Jensen Huang: And uh, what's unique about this infrastructure is that it needs factories.

45:22 Jensen Huang: Um, you know, it's a little bit like, like the, like the energy infrastructure, electricity, it needs factories.

45:30 Jensen Huang: Uh we need factories to produce this intelligence.

45:33 Jensen Huang: And the intelligence is getting more sophisticated.

45:36 Jensen Huang: We were talking about earlier that we had a huge breakthrough in the last couple of years with reasoning AI and and now there are agents that reason and uh there's super agents that use a whole bunch of tools and then there's clusters of super agents where agents are working with agents solving problems.

45:54 Jensen Huang: And so you could just imagine compared to one-shot chatbots and the agents that are now using AI built on these large language models, how much more compute intensive they they really need to be and are.

46:10 Jensen Huang: And so, so I, I think um, we're in the beginning of the build out.

46:14 Jensen Huang: And there should, there should be many, many more announcements in the future.

46:22 Sarah (Operator): Your next question comes from Ben Reitzes with Melius.

46:28 Sarah (Operator): Your line is open.

46:30 Ben Reitzes: Yeah, hi, thanks uh for the question.

46:33 Ben Reitzes: Um, I wanted to ask, you know, first to Colette, um, just a little clarification around the guidance and maybe putting it in a different way.

46:41 Ben Reitzes: Um, you know, the 8 billion for H20 just seems like, you know, it's roughly 3 billion more than most people thought, um, with regard to what you'd be foregoing in the second quarter.

46:53 Ben Reitzes: So that would mean that, you know, with regard to your guidance, the rest of the business is, is doing two to three billion or so better.

47:03 Ben Reitzes: Um, so, you know, I was wondering if that math made sense to you and and then, you know, in terms of the guidance, um, that would that would imply the non-China business is doing, you know, a bit better than the street expected.

47:16 Ben Reitzes: So, you know, wondering, you know, what the primary driver was there in your view.

47:22 Ben Reitzes: And then, um, this, this second part of my question, um, you know, Jensen, I know you guide one quarter at a time, but uh, with regard to, um, the AI diffusion rule being lifted, uh, and this momentum with sovereign, um, you know, there's been times in your history, um, where you've, where you guys have said on calls like this where, you know, you have more conviction in sequential growth throughout the year, etc.

47:51 Ben Reitzes: And given, given the unleashing of demand with AI diffusion being, you know, revoked and the supply chain increasing, um, you know, does, does the environment give you more conviction in sequential growth as we go throughout the year?

48:06 Ben Reitzes: So, first one for Colette and then, um, next one for Jensen.

48:09 Ben Reitzes: Thanks so much.

48:11 Colette Kress: Thanks, Ben, for the question.

48:13 Colette Kress: Uh, when we uh look at our Q2 guidance and our commentary that we provided, uh that had uh the export controls not occurred, we would have had orders of about 8 billion uh for H20.

48:29 Colette Kress: Uh, that's correct.

48:30 Colette Kress: That was um a possibility for what we would have had um in our outlook uh for this quarter in Q2.

48:38 Colette Kress: So what we also have talked about here is the growth that we've seen in Blackwell.

48:43 Colette Kress: Uh, Blackwell across many of our customers as well as the growth that we continue to have in terms of supply that we need uh for our customers.

48:52 Colette Kress: So putting those together, that's where we came through uh with the guidance that we provided.

48:58 Colette Kress: Um, uh, I'm going to turn the rest over uh to Jensen to see how he wants to.

49:02 Jensen Huang: Yeah, thanks.

49:03 Jensen Huang: Thanks, Ben.

49:05 Jensen Huang: I would say compared to the beginning of the year, compared to GTC time frame, there are four positive surprises.

49:16 Jensen Huang: The first positive surprise is the step function demand increase of reasoning AI.

49:27 Jensen Huang: I think it is fairly clear now that AI is going through an exponential growth.

49:34 Jensen Huang: And reasoning AI really busted through.

49:37 Jensen Huang: Uh, concerns about about um hallucination or uh its ability to to really solve problems and I think, I think a lot of people are are crossing that barrier and realizing how incredible, incredibly effective agentic AI is and reasoning AI is.

49:59 Jensen Huang: Um, so number one is inference reasoning.

50:02 Jensen Huang: Uh, and um, uh the the exponential growth there, demand growth.

50:07 Jensen Huang: The second one, you mentioned AI diffusion.

50:10 Jensen Huang: Um, it it's really terrific to see uh that the AI diffusion rule was rescinded.

50:19 Jensen Huang: Uh, President Trump wants America to win.

50:22 Jensen Huang: And and um, he also realizes that that um, we're not the only uh country in the race.

50:32 Jensen Huang: And uh, he wants, he wants uh United States to win.

50:36 Jensen Huang: And recognizes that we have to get the American stack out to the world and have the world build on top of American stacks uh instead of alternatives.

50:47 Jensen Huang: And so, um, AI diffusion uh happened, uh the the rescinding of it happened at almost precisely the time that that countries around the world are awakening the importance of AI as an infrastructure, not just as a technology of great curiosity, um, and great importance, but infrastructure for their industries and startups and society, just as they had to build out infrastructure for electricity and internet, you got to build out infrastructure for AI.

51:18 Jensen Huang: I think that that's an awakening.

51:20 Jensen Huang: And that creates a lot of opportunity.

51:23 Jensen Huang: Uh the third is enterprise AI.

51:25 Jensen Huang: Agents work.

51:27 Jensen Huang: And agents are doing, these agents are really quite successful.

51:32 Jensen Huang: Uh, much more than generative AI, agentic AI is game-changing.

51:38 Jensen Huang: Uh you, they understand, you know, agents can understand ambiguous and uh rather, rather um, uh implicit uh instructions and uh able to problem solve and use tools and have memory and and so on.

51:53 Jensen Huang: And and so I think this is um, uh, enterprise AI is ready, ready to take off.

51:58 Jensen Huang: And and it's taken us a few years to build a computer system that uh that is able to integrate, uh run, run uh enterprise AI stacks, run enterprise IT stacks, but add AI to it.

52:13 Jensen Huang: And this is the uh RTX Pro enterprise server that we announced at Computex uh just last week.

52:23 Jensen Huang: And just about every major IT uh company has joined us, uh super excited about that.

52:29 Jensen Huang: And so computing is one stack, one part of it, but remember, enterprise IT is really three, three pillars.

52:37 Jensen Huang: It's compute, storage, and networking.

52:40 Jensen Huang: And we've now uh put all three of them together for finally.

52:44 Jensen Huang: And uh we're going to market with that.

52:47 Jensen Huang: And then lastly, industrial AI.

52:49 Jensen Huang: Remember, uh one of the implications of of uh the the world reordering if you will, is is uh uh regions onshoring manufacturing and building plants everywhere.

53:06 Jensen Huang: In addition to AI factories, of course, uh there are there are new uh electronics manufacturing, chip manufacturing, um being built around the world.

53:15 Jensen Huang: And all of these new plants and these new factories are uh creating exactly the right time when when um Omniverse and AI and all the work that we've doing, we're doing with robotics is is um uh emerging.

53:30 Jensen Huang: And so, so this uh this fourth pillar is is uh uh quite important.

53:35 Jensen Huang: Every factory will have an AI factory associated with it.

53:38 Jensen Huang: And um, and in order to create these physical AI systems, uh you really have to train a a vast amount of data.

53:46 Jensen Huang: So, so back to more data, more training, more AIs to be created, uh more computers.

53:52 Jensen Huang: And so, these four, these four drivers are are really kicking into turbo charge.

54:02 Sarah (Operator): Your next question comes from Timothy Arcuri with UBS.

54:07 Sarah (Operator): Your line is open.

54:10 Timothy Arcuri: Thanks a lot.

54:10 Timothy Arcuri: Um Jensen, I wanted to ask about China.

54:12 Timothy Arcuri: Uh it sounds like the July guidance assumes there's no SKU replacement for the H20, but if the president wants the US to win, it seems like you're going to have to be allowed to ship something into China.

54:22 Timothy Arcuri: So, I guess I had two um, um, you know, points on that.

54:25 Timothy Arcuri: First of all, have you been approved to ship a new modified version into China and you're currently building it, but you just can't ship it in fiscal Q2?

54:32 Timothy Arcuri: And then you were sort of run rating seven to eight billion dollars a quarter into China.

54:37 Timothy Arcuri: Can we get back to those sorts of quarterly run rates once you get something that you're, you know, allowed to ship back into China?

54:43 Timothy Arcuri: I think we're all trying to figure out how much to add back to our models and when.

54:47 Timothy Arcuri: So, you know, whatever you can say there would be great.

54:48 Timothy Arcuri: Thanks.

54:51 Jensen Huang: The the president has a plan.

54:53 Jensen Huang: He has a vision and I trust him.

54:56 Jensen Huang: Uh with respect to, with respect to uh, uh, our export controls, it's a, it's a set of limits.

55:05 Jensen Huang: And the new set of limits, um, uh, pretty, pretty much make it impossible for us to to continue to reduce Hopper any further, um, you know, for for any productive use.

55:22 Jensen Huang: And and so the new limits, the new limits, you know, it's kind of the end of the road for Hopper.

55:31 Jensen Huang: Uh, we have some, we have limited options and and so we just, the the key is to to understand the limits.

55:38 Jensen Huang: The key is to understand the limits and see if we can come up with with uh with interesting products that could that could continue to serve the Chinese market.

55:47 Jensen Huang: Um, uh, we we don't have anything at the moment.

55:51 Jensen Huang: And um, but we're we're considering it.

55:53 Jensen Huang: We're thinking about it.

55:56 Jensen Huang: Uh obviously the limits are are quite stringent at the moment.

56:00 Jensen Huang: And um, uh, we we have nothing to announce today.

56:04 Jensen Huang: And and when the time comes, uh, you know, we'll we'll uh, we'll uh, uh, engage the uh administration and discuss that.

56:18 Sarah (Operator): Your final question comes from the line of Aaron Rakers with Wells Fargo.

56:23 Sarah (Operator): Your line is open.

56:26 Jake (on for Aaron Rakers): Hi, uh, this is Jake on for Aaron.

56:27 Jake (on for Aaron Rakers): Thanks for taking uh the question and congrats on the great quarter.

56:31 Jake (on for Aaron Rakers): Um, I was wondering if you could give some additional color around the strength you saw within uh the networking business, particularly um around the adoption of your Ethernet solutions at CSPs as well as any change you're seeing in network attach rates.

56:46 Jensen Huang: Yeah, thank you for that.

56:48 Jensen Huang: Uh we now have three networking platforms, maybe, maybe four.

56:56 Jensen Huang: Uh the the first one, the first one is the scale up platform to turn a computer into a much larger computer.

57:06 Jensen Huang: Um, scaling up is incredibly hard to do.

57:10 Jensen Huang: Scaling out is easier to do, but scaling up is hard to do.

57:14 Jensen Huang: And that platform is called NVLink.

57:16 Jensen Huang: And uh, uh, NVLink is is um, uh, comes with it uh chips and switches and, you know, uh, NVLink spines and it's really complicated.

57:31 Jensen Huang: But anyways, that's our new platform, scale up platform.

57:35 Jensen Huang: Uh, in addition to InfiniBand, we also have Spectrum-X.

57:39 Jensen Huang: We've been uh fairly, fairly consistent that Ethernet was designed for um, a lot of traffic that are independent.

57:49 Jensen Huang: But in the case of AI, you have a lot of computers working together.

57:54 Jensen Huang: And the the traffic of AI is insanely bursty.

58:00 Jensen Huang: Latency matters a lot because the the AI is thinking and it wants to get work done as quickly as possible and you got a whole bunch of nodes working together.

58:09 Jensen Huang: And so we enhanced, we we enhanced Ethernet, um, added capabilities like extremely low latency, congestion control, adaptive routing, the type of technologies that were available only in InfiniBand, um, to Ethernet.

58:29 Jensen Huang: And as a result, we improved the utilization of Ethernet in these clusters.

58:34 Jensen Huang: These clusters are gigantic, from as low as 50% to as high as 85%, 90%.

58:42 Jensen Huang: And and so the difference is if you had a cluster that's 10 billion dollars and you improved its effectiveness by 40%, that's worth 4 billion dollars.

58:55 Jensen Huang: It's incredible.

58:57 Jensen Huang: And so Spectrum-X has been really quite frankly a home run and and uh uh this this last quarter uh as as uh we said in the in the prepared remarks, uh we added uh two very significant CSPs uh to the Spectrum-X uh uh adoption.

59:16 Jensen Huang: And and then the last one, the last one is BlueField, which is our uh control plane.

59:21 Jensen Huang: And so in those four, those the control plane in the network, which is used for storage, it's used for uh security and uh for many of these clusters that want to achieve uh uh isolation among its users, multi-tenant clusters, and and still be able to use um uh and and have extremely high performance, bare metal performance, uh BlueField is ideal for that and is used in a lot of these a lot of these cases.

59:52 Jensen Huang: And so we have these four four networking platforms, they're all growing and um, uh and we're we're we're doing really well.

59:59 Jensen Huang: I'm very proud of the team.

01:00:04 Sarah (Operator): That is all the time we have for questions.

01:00:07 Sarah (Operator): Uh, Jensen, I will turn the call back to you.

01:00:11 Jensen Huang: Thank you.

01:00:12 Jensen Huang: This is the start of a powerful new wave of of growth.

01:00:15 Jensen Huang: Grace Blackwell is in full production, we're off to the races.

01:00:19 Jensen Huang: We now have multiple significant growth engines.

01:00:21 Jensen Huang: Inference, once the lighter workload is surging with revenue generating AI services.

01:00:27 Jensen Huang: AI is growing faster and will be larger than any platform shifts before, including the internet, mobile, and cloud.

01:00:35 Jensen Huang: Blackwell is built to power the full AI life cycle from training frontier models to running complex inference and reasoning agents at scale.

01:00:45 Jensen Huang: Training demands continues to rise with breakthroughs in post training and like reinforcement learning and synthetic data generation.

01:00:55 Jensen Huang: But inference is exploding.

01:00:57 Jensen Huang: Reasoning AI agents require orders of magnitude more compute.

01:01:02 Jensen Huang: The foundations of our next growth platforms are in place and ready to scale.

01:01:07 Jensen Huang: Sovereign AI, nations are investing in AI infrastructure like they once did for electricity and internet.

01:01:14 Jensen Huang: Enterprise AI, AI must be deployable on prem and integrated with existing IT.

01:01:21 Jensen Huang: Our RTX Pro, DGX Spark, and DGX Station Enterprise AI systems are ready to modernize the $500 billion IT infrastructure on prem or in the cloud.

01:01:32 Jensen Huang: Every major IT provider is partnering with us.

01:01:36 Jensen Huang: Industrial AI from training to digital twin simulation to deployment, Nvidia Omniverse and Isaac Groot are powering next generation factories and humanoid robotic systems worldwide.

01:01:50 Jensen Huang: The age of AI is here.

01:01:52 Jensen Huang: From AI infrastructures, inference at scale, sovereign AI, enterprise AI, and industrial AI.

01:02:03 Jensen Huang: Nvidia is ready.

01:02:06 Jensen Huang: Join us at GTC Paris.

01:02:07 Jensen Huang: I'll keynote at Vivatech on June 11th, talking about quantum GPU computing, robotic factories and robots, and celebrate our partnerships building AI factories across the region.

01:02:21 Jensen Huang: The Nvidia band will tour France, the UK, Germany, and Belgium.

01:02:26 Jensen Huang: Thank you for joining us at the earnings call today.

01:02:30 Jensen Huang: See you in Paris.

01:02:34 Sarah (Operator): This concludes today's conference call.

01:02:36 Sarah (Operator): You may now disconnect.