NVIDIA’s Singapore Revenue Surges to Record Heights, Ranking Second to U.S. Despite Being a ‘Transshipment Hub’ Rather Than a Genuine Consumer Market

NVIDIA has recently unveiled its Q2 earnings, revealing a noteworthy milestone: the company’s revenue sourced from Singapore has surged to an unprecedented level, ranking just behind the United States.

NVIDIA’s Revenue from Singapore Approaches $10 Billion, Signifying Its Critical Role in Business Operations

The company’s quarterly performance, especially in the realm of artificial intelligence (AI), tells an engaging story, particularly in light of the ongoing restrictions in China. A significant contributor to NVIDIA’s Q2 success has been the region of Singapore. As stated in the financial statements, Singapore’s contribution reached approximately $10 billion, placing it behind only the US and surpassing both Taiwan and China. This revelation has sparked some misunderstandings, with various retailers suggesting potential ‘AI chip diversions.’ However, the reality is more complex.

Geographic revenue table showing figures for United States, Singapore, Taiwan, China, and Other for 2024 and 2025. — Image Credits: NVIDIA

NVIDIA’s revenue from Singapore is not limited to the AI/data center segment; it also encompasses contributions from gaming and other channels. Notably, several AIBs have their operations based in Singapore, including companies like ZOTAC, Manli, and Inno3D, which maintain dedicated manufacturing facilities in the region. This setup undoubtedly contributes to gaming sales. However, the situation is multifaceted. In their 10-Q filing, NVIDIA pointed out that the Singapore region serves for “centralized invoicing, ”indicating that the location is utilized primarily for logistics and does not represent end consumers.

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

Singapore’s status as a ‘transshipment hub’ can be attributed to several factors. While NVIDIA hasn’t disclosed specific reasons, common motives include tax efficiencies, logistical advantages, and regulatory frameworks that support centralized invoicing. According to US GAAP accounting principles, revenue is recognized based on the location of the entity issuing the invoices. Hence, sales are recorded in NVIDIA Singapore rather than the ultimate destination of the products.

To clarify misconceptions surrounding AI chip diversions, NVIDIA has stated:

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 statement reinforces that the notion of AI chips being redirected from Singapore to China is largely unfounded. Contrary to popular claims, NVIDIA indicates no signs of such diversions. Instead, NVIDIA Singapore functions predominantly as a transit point for data center products and related shipments. Additionally, there is also a noticeable demand from local enterprises. The significance of Singapore in NVIDIA’s operational landscape is striking, especially as it stands out as a crucial region aside from China, likely ranking as one of the most important markets for CEO Jensen Huang.

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