Microchip and Nvidia logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland on April 10, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
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As Nvidia posted stellar third-quarter results last week, industry observers pointed out that a substantial amount of the U.S. chip giant’s revenue came from one small country.
About 15% or $2.7 billion of Nvidia’s revenue for the quarter ended October came from Singapore, a U.S. Securities and Exchange Commission filing showed. Revenue coming from Singapore in the third quarter jumped 404.1% from the $562 million in revenue recorded in the same period a year ago. This outpaced Nvidia’s overall revenue growth of 205.5% from a year ago.
Singapore only trailed behind the U.S. (34.77%,) Taiwan (23.91%) and China including Hong Kong (22.24%) in Nvidia’s third-quarter sales rankings.
“I would highly think it’s due to data centers as Singapore has quite a lot of data centers and cloud service providers,” Maybank Securities analyst Jarick Seet told CNBC.
“The chips could also be sent to Singapore for final assembly with other products and then shipped out to other countries,” said Seet. They could also be used for artificial intelligence, computing and electric vehicles, he added.
“What’s a tiny city-state doing with all those chips? Building data centers, of course!,” said Sang Shin, an ex-Temasek and GIC executive, in a LinkedIn post. He previously served as director of digital innovation at Temasek and head of digital strategy and architecture at GIC.
“Because the nation is stable and secure, there is a lot of talent, the digital infrastructure is solid, and the government policies are conducive to digital and data services,” said Shin.
… Singapore is also a growing area of specialized cloud service providers standing up data centers in the region.
The same SEC filing revealed that 80% of Nvidia’s third-quarter sales came from the data…
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