Benzinga - by Shanthi Rexaline, Benzinga Editor.
Nvidia Corp. (NASDAQ:NVDA) reported stellar third-quarter results this week, although negative commentary regarding the impact of the China chip export ban punctured the stock. One peculiarity about the company’s revenue came under the scanner as investors strived to make sense of it.
What Happened: About 15% or $2.7 billion revenue of Nvidia’s topline of $18.12 billion came from Singapore, a 10-Q filing by the chipmaker revealed. On a year-over-year basis, revenue from the island nation jumped 404%, outpacing Nvidia’s total revenue growth of 206%.
Singapore is one of the named countries in Nvidia’s geographic segmentation, next only to the U.S., Taiwan, and China, including Hong Kong, in terms of contribution. Incidentally, the country’s contribution was clubbed under “Other Countries” in the revenue break-up given in the 10-Q report for the second quarter.
“Other Countries” contributed $753 million in revenue in the third quarter, down from $1.89 billion in the second quarter.
Bearish investors flagged Singapore’s rise in ranks as a suspicious development, with some going to the extent of calling it a fraud.
“Somebody is buying a lot of chips in Singapore,” a user of the social media platform X commented.
$NVDA Apparently, somebody is buying a lot of chips in Singapore. That country now represents 15% of total sales, up from 9% last year. pic.twitter.com/Wp21WihIkk— JaguarAnalytics (@JaguarAnalytics) November 22, 2023
Singapore – The New Tech Town? Singapore is slowly and steadily emerging as a key tech hub for companies from both the East and West, according to a recent Nikkei report. The preferred status is due to a stable political environment, an abounding engineering talent pool, and state-of-the-art infrastructure, the report said.
“The city-state provides vast computing power to Southeast Asia’s fast-expanding digital economy and is home to nearly half of the data center capacity in the region,” it added.
Professional services firm Dezan Shira & Associates said in a recent report that Singapore has a roster of 100 data centers, 1,195 cloud service providers, and 22 network fabrics, which makes its digital infrastructure formidable. The firm attributed this to the nation’s power supply and energy efficiency, the regulatory framework that provides for data sovereignty and security, and government incentives for data center investments.
Nvidia shares closed Wednesday’s session down 2.46% at $487.16, according to Benzinga Pro data.
Read Next: Nvidia Analysts Hail ‘Jaw Dropper’ Q3, But Downplay China Setback To Focus On Bigger Picture: ‘This Is A 1995 Moment’
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