NVIDIA today reported financial results for the third quarter of fiscal 2007 ended October 29, 2006. For the third quarter of fiscal 2007, revenue increased to a record $ 820.6 million, compared to $ 583.4 million for the third quarter of fiscal 2006, an increase of 41 percent. “The third quarter was one of the best in NVIDIA’s history,” said Jen-Hsun Huang, president and CEO of NVIDIA. “For the third consecutive quarter, we delivered record revenue as we continued to gain share in each of our core businesses.”

NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the
third quarter of fiscal 2007 ended October 29, 2006.

For the third quarter of fiscal 2007, revenue increased to a record $ 820.6
million, compared to $ 583.4 million for the third quarter of fiscal 2006, an
increase of 41 percent. Net income computed in accordance with U.S. generally
accepted accounting principles (GAAP) for the third quarter of fiscal 2007 was
$ 106.5 million, or $ 0.27 per diluted share. GAAP net income for the third
quarter of fiscal 2007 includes expenses of $ 42.6 million, net of tax, which is
comprised primarily of stock-based compensation expense plus a one-time charge
associated with licensing certain patents.

Non-GAAP net income for the third quarter of fiscal 2007, which excludes SFAS
123R and other stock-based compensation charges and the related tax impact, was
$ 149.2 million, or $ 0.39 per diluted share.

For the second quarter of fiscal 2007 ended July 30, 2006, previously reported
revenue was $ 687.5 million. GAAP net income for the second quarter of fiscal
2007 was $ 86.8 million, or $ 0.22 per diluted share. GAAP net income for the
second quarter of fiscal 2007 includes stock-based compensation expense net of
tax of $ 25.3 million.

Non-GAAP net income for the second quarter of fiscal 2007, which excludes SFAS
123R and other stock-based compensation charges and the related tax impact, was
$ 112.0 million, or $ 0.29 per diluted share.

Revenue for the nine months ended October 29, 2006 was a record $ 2.19 billion,
compared to revenue of $ 1.74 billion for the nine months ended October 30, 2005,
an increase of 26 percent.

“The third quarter was one of the best in NVIDIA’s history,” said Jen-Hsun
Huang, president and CEO of NVIDIA. “For the third consecutive quarter, we
delivered record revenue as we continued to gain share in each of our core
businesses.”

“This week, we made two announcements that set the foundation for continued
strong growth in the coming year and beyond. First, we announced the GeForce
8800 and nForce 680i, which represent the most ambitious undertaking in the
history of the company. The GeForce 8800 is the world’s first DX10 unified
shader GPU. The nForce 680i is the highest performance motherboard supporting
Intel’s exciting Core 2 Duo processors. The combination of GeForce 8800 and
nForce 680i delivers what we believe are the perfect technologies to support the
biggest confluence of technology changes to hit our industry in the last 10
years — Windows Vista, DX10 and Blu-ray/HD. Second, we announced the
acquisition of PortalPlayer. By combining our GPU technology with PortalPlayer’s
application processor expertise, we intend to be a major player in the mobile
industry by delivering the two most essential technologies for next generation
handheld devices,” Huang said.

Third Quarter Fiscal 2007 and Recent Highlights:

Non-GAAP gross margin reached a Company high of 42.9 percent, an increase of 20
basis points sequentially from the second quarter of fiscal 2007. GAAP gross
margin was 40.6 percent.

NVIDIA launched and shipped the NVIDIA GeForce(R) 8800 series GPUs, the PC
industry’s first unified shader architecture GPU to support the Microsoft
DirectX 10 API. NVIDIA launched and shipped the nForce(R) 680i SLI MCP, designed
to deliver the highest performance for Intel Core2 Quad and Core2 Duo-based PCs.

NVIDIA grew share in total standalone graphics, which includes desktop and
notebook PCs, to 55 percent, and is now the largest supplier of standalone GPUs
according to the Mercury Research Third Quarter 2006 PC Graphics Report.

NVIDIA grew share in total desktop graphics to 33 percent, and is now the
largest supplier of desktop PC graphics according to Mercury Research.

The NVIDIA GeForce Go notebook GPU product line achieved record revenue for the
third consecutive quarter. NVIDIA grew share to a leading 52 percent of the
notebook standalone GPU segment. Notebook GPU revenue grew 46 percent
sequentially from fiscal Q2 2007 and more than 100 percent in revenue
year-over-year.

The NVIDIA nForce MCP product line achieved record revenue for its ninth
consecutive quarter. NVIDIA nForce MCP revenue grew 35 percent sequentially from
fiscal Q2 2007 and more than doubled in revenue year-over-year.

NVIDIA nForce MCPs increased their share of the AMD64 segment to 61 percent as
reported in the Mercury Research Third Quarter Worldwide Chipset Report 2006.
NVIDIA is now the second largest core logic supplier in the world, according to
the Mercury Research Third Quarter 2006 PC Processors and Chipsets: Market
Strategy and Forecast Report.

NVIDIA signed a definitive agreement to acquire Portal Player, Inc., a leading
supplier of semiconductors, firmware, and software for personal media players
and secondary display-enabled computers.