- About 15% or $2.7 billion of Nvidia’s income for the quarter ended October got here from Singapore, an SEC submitting by the chipmaker confirmed.
- “I’d extremely suppose it is because of knowledge facilities as Singapore has various knowledge facilities and cloud service suppliers,” Maybank Securities analyst Jarick Seet informed CNBC.
- Citi analysts stated that Singapore is a “rising space of specialised cloud service suppliers standing up knowledge facilities within the area.”
Microchip and Nvidia emblem displayed on a telephone display are seen on this a number of publicity illustration photograph taken in Krakow, Poland on April 10, 2023. (Photograph by Jakub Porzycki/NurPhoto through Getty Photographs)
Nurphoto | Nurphoto | Getty Photographs
As Nvidia posted stellar third-quarter outcomes final week, business observers identified {that a} substantial quantity of the U.S. chip big’s income got here from one small nation.
About 15% or $2.7 billion of Nvidia’s income for the quarter ended October got here from Singapore, a U.S. Securities and Trade Fee submitting confirmed. Income coming from Singapore within the third quarter jumped 404.1% from the $562 million in income recorded in the identical interval a yr in the past. This outpaced Nvidia’s general income development of 205.5% from a yr in the past.
Singapore solely trailed behind the U.S. (34.77%,) Taiwan (23.91%) and China together with Hong Kong (22.24%) in Nvidia’s third-quarter gross sales rankings.
“I’d extremely suppose it is because of knowledge facilities as Singapore has various knowledge facilities and cloud service suppliers,” Maybank Securities analyst Jarick Seet informed CNBC.
“The chips may be despatched to Singapore for last meeting with different merchandise after which shipped out to different nations,” stated Seet. They may be used for synthetic intelligence, computing and electrical automobiles, he added.
“What’s a tiny city-state doing with all these chips? Constructing knowledge facilities, in fact!,” stated Sang Shin, an ex-Temasek and GIC govt, in a LinkedIn put up. He beforehand served as director of digital innovation at Temasek and head of digital technique and structure at GIC.
“As a result of the nation is steady and safe, there may be a variety of expertise, the digital infrastructure is strong, and the federal government insurance policies are conducive to digital and knowledge companies,” stated Shin.
… Singapore can be a rising space of specialised cloud service suppliers standing up knowledge facilities within the area.
Citi
The identical SEC submitting revealed that 80% of Nvidia’s third-quarter gross sales got here from the information heart section, whereas gaming, skilled visualization, automotive and others make up the remaining.
“Cloud service suppliers drove roughly half of knowledge heart income, whereas shopper web firms and enterprises comprised roughly the opposite half,” stated Nvidia within the submitting.
Nvidia didn’t break down its Singapore income by enterprise section.
“Concerning Singapore, a sure shopper web firm bought knowledge heart options in Q3 to be stood up in Singapore knowledge facilities. Lastly, Singapore can be a rising space of specialised CSPs standing up knowledge facilities within the area,” Citi analysts wrote in a Nov. 27 report.
In January 2022, Singapore lifted a moratorium issued in 2019 that briefly paused the discharge of land for knowledge heart use and sought to reasonable the expansion of knowledge facilities. Singapore subsequently awarded rights in July to Equinix, Microsoft, Chinese language knowledge heart options supplier GDS and a tie-up between AirTrunk and ByteDance to develop new knowledge heart initiatives in Singapore.
There have been greater than 70 operational knowledge facilities in Singapore, as of January 2022. Town-state nonetheless accounts for 60% of Southeast Asia’s complete knowledge heart capability.
Singapore emerged third globally and first in Asia Pacific by way of knowledge heart market rankings, in line with a report by Cushman and Wakefield. Northern Virginia and Portland within the U.S. tied for first whereas Hong Kong is available in at fourth.
“Demand for knowledge facilities in Singapore will stay excessive with the fast development of digital apps, e-commerce, web of issues, synthetic intelligence, crypto-trading, blockchain actions, on-line gaming, and many others. The shift to hybrid working and enterprise digitalization has additionally contributed to the demand for knowledge heart area,” stated Worldwide Commerce Administration in a report.
