Nvidia’s Third-Quarter Revenue Boosted by Singapore
Nvidia reported a surge in third-quarter revenue recently, with notable income coming from a small country. According to a U.S. Securities and Exchange Commission filing, Singapore contributed around 15% or $2.7 billion to Nvidia’s revenue. This percent was an impressive increase of 404.1% from the $562 million in revenue recorded in the same period a year ago. It trailed only the U.S. at 34.77%, Taiwan at 23.91%, and China including Hong Kong at 22.24% in terms of Nvidia’s third-quarter sales rankings.
Singapore’s Ways with Chips
Analysts were quick to conclude that the success of Nvidia’s revenue in Singapore was due to the region’s data centers. “I would highly think it’s due to data centers as Singapore has quite a lot of data centers and cloud service providers,” said Maybank Securities analyst Jarick Seet. Sang Shin, an ex-Temasek and GIC executive also added insight into this topic, emphasizing that Singapore is a growing area of specialized cloud service providers who are building data centers in the region. Additionally, Citi analysts explained in a report that a certain consumer internet company purchased data center solutions to be established in Singapore data centers, contributing to the revenue.
Nvidia’s The World Over
In a statement, Nvidia revealed that 80% of its third-quarter sales came from the data center segment, with the rest being made up by gaming, professional visualization, automotive, and other segments. “Cloud service providers drove roughly half of data center revenue, while consumer internet companies and enterprises comprised approximately the other half,” Nvidia explained in a filed release. It did not give a detailed breakdown of its revenue in Singapore by business segment.
Singapore Emerging as a Data Center Hub
Singapore lifted a moratorium issued in 2019 that paused the release of land for data center use in January 2022. July later saw the award of rights to Equinix, Microsoft, a Chinese data center solutions provider GDS, and a tie-up between AirTrunk and ByteDance to develop new data center projects in Singapore. This lead to there being more than 70 operational data centers in Singapore according to reports, with the city-state accounting for 60% of Southeast Asia’s total data center capacity. Singapore also ranks highly on a global scale, emerging third globally and first in Asia Pacific in terms of data center market rankings in a report by Cushman and Wakefield.
The Future of Singapore in the Chip Business
According to International Trade Administration in a report, “Demand for data centers in Singapore will remain high with the rapid growth of digital apps, e-commerce, internet of things, artificial intelligence, crypto-trading, blockchain activities, online gaming, etc. The shift to hybrid working and business digitalization has also contributed to the demand for data center space.” The nation is expected to continue its success with increasing revenue from chips, particularly in data centers.
