Speaking about the geographic segmentation of Nvidia’s revenue in the third quarter, the company’s CFO Colette Kress chose to highlight China, mentioning the sequential growth of server revenue in this country due to the supply of Hopper generation accelerators compliant with US export control regulations.
Image source: NVIDIA
An Nvidia spokeswoman admitted: “As a percentage of total data center revenue, (Chinese revenue) has remained well below pre-export control levels. We expect the Chinese market to remain highly competitive going forward. We will continue to comply with export control regulations when serving our customers.” As Colette Kress noted, Hopper accelerators in China are supplied to representatives of various industries.
If we consider Nvidia’s Chinese revenue as a whole, it is second in size only to the United States and Singapore, although the company’s quarterly report notes that in the latter case, the “assignment” of customers to a tiny Asian state does not mean at all that the company’s corresponding products were physically delivered to this country. In China, in the third quarter of this year, the company generated $5.4 billion in revenue, which corresponds to 15% of total revenue for the period. A year ago, this level reached 22%, but in other geographic areas the company’s revenue grew at a faster pace. For example, in the USA it has more than doubled, in Singapore it has almost tripled.
Nvidia’s revenue in China increased 46% sequentially and 34% year-over-year. In other words, given the dominance of server components in the current supply structure of Nvidia products, even in the face of increasing sanctions, computing accelerators of this brand continued to be supplied to China in growing quantities. Moreover, in the nine months of the current fiscal year, Nvidia’s revenue in China grew by 38% to $11.6 billion.