NVIDIA recently reported its Q2 earnings, and an interesting fact mentioned was that the company's revenue from Singapore has reached a record high, coming just second from the US.
NVIDIA's Revenue From Singapore Hits Around $10 Billion, Being a Crucial Region For The Firm's Business
Team Green's quarterly earnings were indeed an interesting story when you look at the company's situation on the AI front, especially with the deadlock present in China. However, another region that has been a key factor for NVIDIA's Q2 revenue is Singapore. According to the company's financial statements, Singapore accounted for around $10 billion of the total Q2 revenue, which is second to the US, and ahead of Taiwan and China. This fact has created several misconceptions, with retailers calling out towards 'AI chip diversions', but here's the reality.
Based on what NVIDIA has disclosed, Singapore revenue isn't just confined to the AI/DC segment; it also accounts for gaming and other streams. For those unaware, several AIBs are located in Singapore, with firms like ZOTAC, Manli, and Inno3D having dedicated production facilities in the region, so a portion of Singapore revenue is definitely driven by gaming sales. But this isn't the whole story. In the 10-Q filing, Team Green discloses that the region is used for "centralized invoicing", which means Singapore isn't the end consumer, rather a means of redirecting shipments.
Singapore represented 22%, and 21% of the second quarter and first half of fiscal year 2026 total revenue based upon customer billing location, respectively. Customers use Singapore to centralize invoicing while our products are almost always shipped elsewhere.
- NVIDIA's 10-Q filing
There are many reasons behind Singapore acting as a 'transshipment hub', and while NVIDIA hasn't specifically disclosed them, factors like tax efficiency, logistical support, and regulatory strategies are the more common reasons for firms like NVIDIA to have a centralized invoicing mechanism. The US GAAP accounting rules clearly state that revenue must be tied to entities issuing invoices, which is why the sale is recorded in NVIDIA Singapore rather than the place where end-users are located. To further clarify claims of AI chip diversions, here's what NVIDIA says:
Over 99% of controlled Data Center compute revenue billed to Singapore was for orders from U.S.-based customers for the second quarter and first half of fiscal year 2026.
- NVIDIA's 10-Q filing
This makes it clear that the possibility of AI chips heading from Singapore to China isn't there, and despite what claims on the internet say, it is evident that NVIDIA sees no signs of diversions. NVIDIA Singapore acts as a redirect mechanism for DC or similar shipments, and there's also demand from domestic firms. It's still interesting to see how big a role Singapore actually plays for NVIDIA right now, given that, apart from China, it's probably the most important region for Jensen.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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