EX-99.1 Q404 PRESS RELEASE

SANTA CLARA, CA. – February 12, 2004 – NVIDIA® Corporation (Nasdaq: NVDA) today reported financial results for the fourth quarter of fiscal 2004 and the fiscal year ended January 25, 2004. 

For the fourth quarter of fiscal 2004, revenue increased to $472.1 million, compared to $469.0 million for the fourth quarter of fiscal 2003.  Net income for the fourth quarter of fiscal 2004 was $24.2 million, or $0.14 per diluted share, compared to net income of $50.9 million, or $0.30 per diluted share, for the fourth quarter of fiscal 2003.  

Revenue for the fiscal year ended January 25, 2004 was $1.82 billion, compared to revenue of $1.91 billion for the fiscal year ended January 26, 2003.  Net income for the fiscal year ended January 25, 2004 was $74.4 million, or $0.43 per diluted share, compared to net income of $90.8 million, or $0.54 per diluted share, for the fiscal year ended January 26, 2003.  

"Our goals this year are to extend our GPU and MCP leadership, drive gross margin improvements, and bring innovative products and strategies that make a significant impact within each of the segments we serve," stated Jen-Hsun Huang, president and CEO of NVIDIA. 

Huang added, "The products we now build span the computing, consumer electronics, and handheld segments. All of these segments are being transformed by digital media and networking. We believe the GPU and MCP are the engines that will power computing and consumer electronics in the ‘networked digital entertainment’ era." 

NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal year 2004 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 first quarter fiscal 2005. 

About NVIDIA 

NVIDIA Corporation is a market leader in visual computing technology dedicated to creating products that enhance the interactive experience on consumer and professional computing platforms. Its graphics and communications processors have broad market reach and are incorporated into a wide variety of computing platforms, including consumer digital-media PCs, enterprise PCs, professional workstations, digital content creation systems, notebook PCs, military navigation systems and video game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 1,800 people worldwide. For more information, visit the Company’s Web site at www.nvidia.com <http://www.nvidia.com> . 

Certain statements in this press release regarding earnings in the fourth quarter of fiscal 2004, including the statements relating to the Company's expectations for NVIDIA's family of products and expectations of market position and growth, 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, manufacturing and other delays relating to new products, difficulties in the fabrication process and dependence of the Company on third-party manufacturers, general industry trends including cyclical trends in the PC and semiconductor industries, manufacturing costs and the pricing of components such as memory, the impact of competitive products and pricing alternatives, changes in industry standards and interfaces, market acceptance of the Company's new products, the Company's dependence on third-party developers and publishers and the impact of litigation and other proceedings. Investors are advised to read the Company's Annual Report on Form 10-K filed on April 25, 2003, particularly those sections entitled "Business Risks," for a more complete discussion of these and other risks and uncertainties.. 

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Copyright © 2004 NVIDIA Corporation.  All rights reserved.  All company and/or product names may be trade names, trademarks and/or registered trademarks of the respective owners with which they are associated. Features, pricing, availability, and specifications are subject to change without notice. 

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Note to editors: If you are interested in viewing additional information on NVIDIA, please visit the NVIDIA Press Room at http://www.nvidia.com/view.asp?PAGE=press_room . 

	Three Months Ended				Twelve Months Ended
	January 25,		January 26,		January 25,			January 26,
		2004		2003		2004			2003


Revenue (A)	$	472,119	$	468,953	$	1,822,945		$	1,909,447

Cost of revenue		333,914		301,442		1,294,067			1,327,271
Cost of revenue related to stock option exchange (B)		-		-		-			6,164

Gross profit		138,205		167,511		528,878			576,012

Operating expenses:
Research and development		71,990		57,373		269,972			224,873
Sales, general and administrative		42,399		39,402		165,249			151,485
In-process research and development (C)		-		-		3,500			-
Stock option exchange (B)		-		-		-			55,668

Total operating expenses		114,389		96,775		438,721			432,026

Operating income		23,816		70,736		90,157			143,986

Interest and other income, net		2,433		2,030		9,584			6,571
Convertible debenture redemption expense (D)		-		-		(13,068	)		-

Income before income tax expense		26,249		72,766		86,673			150,557

Income tax expense (E)		2,083		21,830		12,254			59,758

Net income	$	24,166	$	50,936	$	74,419		$	90,799


Basic net income per share	$	0.15	$	0.32	$	0.46		$	0.59

Diluted net income per share	$	0.14	$	0.30	$	0.43		$	0.54

Shares used in basic per share computation		163,456		157,683		160,924			153,513

Shares used in diluted per share computation		176,457		167,517		172,707			168,393

(A) As a result of the Microsoft Xbox pricing settlement, NVIDIA recognized $40,365 in additional revenue in the three months ended January 26, 2003. Of the $40,365, revenue associated with unit sales in the three months ended January 26, 2003 was $4,777 and revenue associated with unit sales in prior quarters was $35,588.

(B) The stock option exchange expense for the twelve months ended January 26, 2003 was related to personnel associated with manufacturing cost, research and development, and sales, general and administrative of $6.2 million, $35.4 million and $20.2 million, respectively.

(C) Amount represents the write-off of acquired research and development expense from the purchase of MediaQ, Inc. on August 19, 2003 that had not yet reached technological feasability and has no alternative future use.

(D) Amount includes a $7.6 million redemption premium paid for the convertible debentures and $5.5 million of related unamortized issuance costs.

(E) The effective income tax rate for the three and twelve months ended January 25, 2004 was 7.9% and 14.1%, respectively. The effective income tax rate for the three and twelve months ended January 26, 2003 was 30% and 39.7%, respectively.

	January 25,		January 26,
		2004		2003

ASSETS

Current assets:
Cash, cash equivalents and marketable securities	$	604,043	$	1,028,413
Accounts receivable, net		196,631		154,501
Inventories		234,238		145,046
Prepaid and other current assets		14,539		12,393
Prepaid and deferred taxes		3,261		11,249

Total current assets		1,052,712		1,351,602

Property and equipment, net		190,029		135,152
Deposits and other assets		7,731		10,473
Prepaid and deferred taxes		-		43,317
Goodwill		108,909		54,227
Intangible assets, net		39,963		22,244

Total assets	$	1,399,344	$	1,617,015


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	185,342	$	141,129
Accrued liabilities		144,755		228,467
Current portion of note and capital lease obligations		4,015		5,676
Interest payable		-		4,176

Total current liabilities		334,112		379,448

Deferred income tax liability		8,609		-
Capital lease obligations, less current portion		856		4,880
Long-term convertible debenture		-		300,000
Long-term liabilities		4,582		-

Stockholders' equity		1,051,185		932,687

Total liabilities and stockholders' equity	$	1,399,344	$	1,617,015