For First Six Months of Fiscal 2006, Company Achieves Record Revenue and Increases Net Income 426 Percent

For further information, contact:

Michael Hara        
Investor Relations       
NVIDIA Corporation        
(408) 486-2511         
mhara@nvidia.com

David Roman
Public Relations
NVIDIA Corporation
(408) 486-6250
droman@nvidia.com       

FOR IMMEDIATE RELEASE

SANTA CLARA, CA – August 11, 2005 – NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the second quarter of fiscal 2006 ended July 31, 2005.

For the second quarter of fiscal 2006, revenue was $574.8 million, compared to $456.1 million for the second quarter of fiscal 2005, an increase of 26 percent.  Net income for the second quarter of fiscal 2006 was $74.8 million, or $0.41 per diluted share, compared to net income of $5.1 million, or $0.03 per diluted share, for the second quarter of fiscal 2005, a net income increase of 1,362 percent.

Revenue for the six months ended July 31, 2005 was a record $1.16 billion, compared to revenue of $928.0 million for the six months ended July 25, 2004.  Net income for the six months ended July 31, 2005 was $139.3 million, or $0.77 per diluted share, compared to net income of $26.5 million, or $0.15 per diluted share, for the six months ended July 25, 2004, a net income increase of 426 percent.
 
“Our financial performance is a result of the successful execution and delivery of many market-leading products and platform-changing initiatives.  Strong year-over-year revenue growth in our desktop GPU, MCP and workstation product lines, combined with our intense focus on gross margin improvement led to our highest quarterly net income in three years,” stated Jen-Hsun Huang, president and CEO at NVIDIA.  “Our continued success underscores the importance of our key long-term growth strategies – innovate and be the world GPU leader, expand and extend the reach of GPUs beyond the PC, and deliver total innovative market-defining platforms.” 

Second Quarter Fiscal 2006 and Recent Highlights:

• Gross margin improved 710 basis points over the gross margin for the second quarter fiscal 2005.
• The NVIDIA nForce™ product line revenue increased 128 percent year-over-year and has achieved record revenue for three consecutive quarters.
• The NVIDIA Quadro® workstation product line revenue increased almost 40 percent year-over-year and achieved record revenue.
• Introduced and simultaneously delivered two new GeForce™ 7 graphics processing units (GPUs) – the GeForce 7800 GTX and the GeForce 7800 GT – designed for the enthusiast and performance desktop PC segments, respectively.
• NVIDIA nForce4 SLI™ technology and dual GeForce 7800 GTX GPU are now featured in the new Dell XPS 600 desktop PC.
• The NVIDIA GeForce 6600 GT GPU and the NVIDIA nForce4 SLI-based Asus A8N-SLI Deluxe motherboard earned the 2005 PC World “World Class” Award as best products of the year in hardware.
• Introduced two new NVIDIA Quadro GPUs – the NVIDIA Quadro FX 4500 and NVIDIA Quadro FX 3450 – designed for the high-end and mainstream professional segments, respectively.  Both GPUs support SLI technology.
• NVIDIA extended share from 70 percent to 73 percent from the first calendar quarter of 2005 to the second calendar quarter of 2005 in the Performance DX9 Desktop GPU segment as reported in the Mercury Research Second Quarter PC Graphics Report 2005.

NVIDIA will conduct a conference call with analysts and investors to discuss its second quarter fiscal 2006 financial results and current financial prospects today at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time). To listen to the call, please dial (706) 679-0543.   A live Web cast (listen-only mode) of the conference call will be held at the NVIDIA investor relations Web site http://nvidia.com/ir and at http://www.streetevents.com.  The Web cast will be recorded and available for replay until the Company’s conference call to discuss its financial results for its third quarter fiscal 2006.

About NVIDIA
NVIDIA Corporation is a worldwide leader in graphics and digital media processors.  The Company’s products enhance the end-user experience on consumer and professional computing devices.  NVIDIA graphics processing units (GPUs), media and communications processors (MCPs), and wireless media processors (WMPs) have broad market reach and are incorporated into a variety of platforms, including consumer and enterprise PCs, notebooks, workstations, PDAs, mobile phones, and video game consoles.  NVIDIA is headquartered in Santa Clara, California and employs more than 2,100 people worldwide.  For more information, visit the Company’s Web site at www.nvidia.com.

Certain statements in this press release including, but not limited to, our long-term growth strategies and initiatives, including being the world GPU leader, expanding the reach of the GPU beyond the PC, and delivery of total solutions and innovative platforms are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations.  Such risks and uncertainties include, but are not limited to, continued market acceptance of new products and technologies, prohibitive pricing of new products and technologies, manufacturing costs and delays, demand for use of GPUs in devices other than the PC, continued demand for improved GPUs, difficulties in the development of new and enhanced products, the impact of technological development and competition,  our dependence on third-party manufacturers, general industry trends including cyclical trends in the semiconductor and PC industries, the impact of competitive products and pricing alternatives, slower than expected or unanticipated changes in industry standards and interfaces and other risks detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission including its Form 10-Q for its quarter ended May 1, 2005.  These forward-looking statements speak only as of the date of this release.  NVIDIA disclaims any obligation to update these forward-looking statements.