Analysis of Reportable Segments
NVIDIA Corp. operates in 2 segments: Compute & Networking and Graphics.
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- Analysis of Solvency Ratios
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- Enterprise Value to EBITDA (EV/EBITDA)
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- Analysis of Revenues
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Segment Profit Margin
NVIDIA Corp., profit margin by reportable segment
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | |
|---|---|---|---|---|---|---|
| Compute & Networking | ||||||
| Graphics |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The annual reportable segment profit margin data reveals distinct trends for the two segments, Compute & Networking and Graphics, over the period from January 2020 to January 2025.
- Compute & Networking Segment
-
The profit margin for the Compute & Networking segment exhibits a general upward trajectory across the observed periods. Starting at 22.9% in January 2020, the margin shows a substantial rise to 37.25% by January 2021. This upward momentum continues, reaching 41.63% in January 2022, before experiencing a slight decline to 33.73% in January 2023.
From January 2023 onwards, the margin surges significantly, more than doubling to 67.54% by January 2024, and further increasing to 71.33% in January 2025. Overall, the segment demonstrates strong and growing profitability, with a particularly notable improvement in the most recent two years covered by the data.
- Graphics Segment
-
The Graphics segment's profit margin fluctuates more noticeably over the same timeframe. Initially holding a higher margin than Compute & Networking at 42.77% in January 2020, the margin increases to 46.9% by January 2021 and peaks at 53.52% in January 2022.
However, a marked decrease occurs in January 2023, when the margin falls to 38.23%, followed by a modest recovery to 43.25% in January 2024. The most recent data point, January 2025, shows a further decline to 35.55%, resulting in an overall downward trend from the peak margin in 2022.
This pattern indicates greater volatility and a weakening profitability trend in the Graphics segment compared to Compute & Networking.
In summary, the Compute & Networking segment displays continuous improvement with accelerating profit margins in the later years, while the Graphics segment experiences initial growth but faces a decline and increased variability in profitability after its peak in 2022. The divergence suggests differing performance dynamics and potential strategic considerations for each segment going forward.
Segment Profit Margin: Compute & Networking
NVIDIA Corp.; Compute & Networking; segment profit margin calculation
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
- Operating Income (Loss)
- The operating income demonstrates a consistent upward trend across the analyzed periods, increasing from 751 million US dollars in early 2020 to 82,875 million US dollars by early 2025. Significant acceleration is observed starting from 2024, where operating income surged dramatically from 5,083 million to 32,016 million in 2024 and further to 82,875 million in 2025. This indicates substantial improvement in operational profitability and efficiency within the segment over the years.
- Revenue
- Revenue shows a steady and sharp increase throughout the period. Beginning at 3,279 million US dollars in 2020, revenue more than tripled by 2023 reaching 15,068 million. The growth rate accelerates notably afterwards, with revenue increasing over threefold from 15,068 million in 2023 to 47,405 million in 2024, and then more than doubling to reach 116,193 million by 2025. This rapid revenue expansion suggests strong market demand or successful commercialization of products and services in the Compute & Networking segment.
- Segment Profit Margin
- The segment profit margin exhibits variability but overall shows a positive trend with increasing profitability. The margin grew from 22.9% in 2020 to a peak of 41.63% in 2022, before experiencing a temporary decline to 33.73% in 2023. Subsequently, there is a sharp improvement with profit margins rising significantly to 67.54% in 2024 and further to 71.33% in 2025. This improvement in margin percentage alongside growing revenue and operating income reflects enhanced cost management and operational leverage.
Segment Profit Margin: Graphics
NVIDIA Corp.; Graphics; segment profit margin calculation
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
- Revenue Trends
- The revenue for the Graphics segment exhibited a general upward trend from January 26, 2020, to January 26, 2025. Starting at $7,639 million in 2020, revenue increased significantly to $15,868 million by January 30, 2022. Although there was a decline to $11,906 million in 2023, the revenue recovered and continued to increase to $14,304 million by 2025. This pattern indicates periods of rapid growth followed by a correction and subsequent recovery.
- Operating Income (Loss) Trends
- The operating income showed notable fluctuations over the analyzed period. It rose sharply from $3,267 million in 2020 to a peak of $8,492 million in 2022, reflecting strong profitability in line with the revenue increase. However, operating income decreased substantially to $4,552 million in 2023, then partially recovered to $5,846 million in 2024 before slightly declining again to $5,085 million in 2025. This suggests variability in operating efficiency or cost management relative to revenue changes.
- Segment Profit Margin Trends
- The segment profit margin represented as a percentage showed the highest value of 53.52% in 2022, coinciding with peak revenue and operating income. Before this peak, the margin rose steadily from 42.77% in 2020 to 46.9% in 2021. Post-2022, it declined significantly to 38.23% in 2023 and further fluctuated to 43.25% in 2024 before dropping to 35.55% in 2025. This pattern indicates declining profitability on a margin basis despite some recovery in earnings, suggesting rising costs or pricing pressures.
- Overall Observations
- The Graphics segment demonstrated substantial growth in revenue and profitability until 2022, followed by a period of volatility in subsequent years. Although revenue showed signs of recovery after 2023, both operating income and profit margins reflected increased volatility and a downward trend, suggesting challenges in maintaining earlier levels of profitability. This indicates that while volume or pricing recovered, cost structures or competitive dynamics may have pressured profitability margins.
Revenue
NVIDIA Corp., revenue by reportable segment
US$ in millions
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | |
|---|---|---|---|---|---|---|
| Compute & Networking | ||||||
| Graphics | ||||||
| Consolidated |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
- Compute & Networking Segment Revenue
- The revenue from the Compute & Networking segment exhibited a significant upward trend over the analyzed periods. Starting at $3,279 million in early 2020, it more than doubled in 2021 to $6,841 million. This rapid growth continued in the following years, reaching $11,046 million in 2022 and $15,068 million in 2023. Notably, in 2024, the segment revenue surged dramatically to $47,405 million, representing over threefold growth compared to the previous year. This expansion sustained momentum into 2025, culminating in a revenue of $116,193 million, which indicates aggressive growth and increasing contribution to the total business.
- Graphics Segment Revenue
- The Graphics segment revenue demonstrated a more moderate and somewhat fluctuating pattern. It initially increased from $7,639 million in 2020 to $9,834 million in 2021, followed by a significant rise to $15,868 million in 2022. However, in 2023, the segment experienced a decline to $11,906 million, which then recovered somewhat to $13,517 million in 2024. The revenue stabilized in 2025 at $14,304 million. Overall, while showing growth over the six-year span, the Graphics revenue was less volatile than the Compute & Networking segment but also less consistently upward trending.
- Consolidated Revenue
- The consolidated revenue data illustrates a strong growth trajectory overall. The total revenue increased from $10,918 million in 2020 to $16,675 million in 2021, showcasing healthy expansion. This acceleration continued into 2022 with a revenue of $26,914 million and remained relatively flat through 2023 at $26,974 million. A pronounced increase occurred in 2024, with total revenue more than doubling to $60,922 million, and this upward trend persisted into 2025, reaching $130,497 million. This pattern reflects the dominant contribution from the Compute & Networking segment’s rapid growth, which significantly outweighs the Graphics segment's more stable revenue path.
- Overall Insights
- The data indicates that the Compute & Networking segment has become the primary driver of revenue growth in recent years, demonstrating exponential expansion particularly after 2023. In contrast, the Graphics segment has maintained a relatively stable revenue base with moderate fluctuations but no comparable explosive growth. The consolidated revenue growth pattern closely follows the trajectory of the Compute & Networking segment, underlining its increasing importance to total company revenue. The divergence in growth rates between the two segments highlights a strategic shift or market dynamic favoring Compute & Networking offerings over the analyzed periods.
Operating income (loss)
NVIDIA Corp., operating income (loss) by reportable segment
US$ in millions
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | |
|---|---|---|---|---|---|---|
| Compute & Networking | ||||||
| Graphics | ||||||
| All Other | ||||||
| Consolidated |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
- Compute & Networking Segment Operating Income
-
The Compute & Networking segment demonstrated a strong upward trend throughout the periods analyzed. Starting at $751 million in early 2020, the operating income increased steadily to $5,083 million by early 2023. A notable surge occurred between early 2023 and early 2024, where income jumped substantially from $5,083 million to $32,016 million. This growth continued sharply into early 2025, reaching $82,875 million. The data indicates significant expansion and enhanced profitability within this segment, particularly in the most recent two years.
- Graphics Segment Operating Income
-
The Graphics segment exhibited an initially positive growth trend, rising from $3,267 million in early 2020 to $8,492 million by early 2022. However, this was followed by a sharp decline to $4,552 million in early 2023. Subsequently, there was a moderate recovery to $5,846 million in early 2024, but the latest figure shows a slight decrease to $5,085 million in early 2025. Overall, the segment reflects volatility with fluctuating profitability after peaking in early 2022.
- All Other Segment Operating Income
-
The All Other segment consistently reported negative operating income across all periods, indicating ongoing losses. The losses deepened over time, starting at -$1,172 million in early 2020 and deteriorating to -$5,411 million by early 2023. Although a slight improvement was observed in early 2024, with losses reducing to -$4,890 million, this was reversed in early 2025, where losses increased again to -$6,507 million. This trend suggests persistent challenges and increased expenses or reduced profitability in activities categorized under All Other.
- Consolidated Operating Income
-
Overall consolidated operating income followed a pattern influenced predominantly by the Compute & Networking and Graphics segments. Starting at $2,846 million in early 2020, consolidated income rose to $10,041 million in early 2022 before declining sharply to $4,224 million in early 2023. From that point, consolidated income surged impressively to $32,972 million by early 2024 and further to $81,453 million in early 2025. This reflects the strong performance of the Compute & Networking segment offsetting volatility and losses in other areas, resulting in significant consolidated profitability growth in the most recent years.