📗Nvidia’s Singapore Revenue? It’s Just A Billing Thing
Welcome, AI & Semiconductor Investors,
Nvidia is setting the record straight on its “Singapore revenue,” explaining how centralizing invoices there inflated numbers while actual shipments to the region remain minimal.
We’ll also dig into ON Semiconductor’s rumored move to buy Allegro MicroSystems for a bigger automotive chip footprint, and see how Dell is flexing its AI server muscle with a massive $15B revenue forecast — Let’s Chip In
What The Chip Happened?
📗Nvidia’s Singapore Revenue? It’s Just A Billing Thing
⚙️ Chipping into Allegro: ON Semi Eyes Automotive Takeover
🤖 Dell Doubling Down on AI Servers
[Dell Technologies Showcases AI-Driven Momentum in Q4 Fiscal 2025]
Read time: 7 minutes
Nvidia (NASDAQ: NVDA)
📗 Nvidia’s Singapore Revenue? It’s Just A Billing Thing
What The Chip: Nvidia has clarified rumors in its recent 10k report about its seemingly large revenue numbers from Singapore, explaining that most products billed in Singapore are shipped elsewhere. According to the company, Singapore’s invoicing accounted for 18% of revenue in fiscal year 2025, but actual shipments to Singapore were under 2%.
Details:
💡 Billing vs. Shipping: Nvidia notes that “Customers use Singapore to centralize invoicing while our products are almost always shipped elsewhere.” This highlights how the high Singapore figure is driven by billing addresses, not physical deliveries.
🏭 Minimal Actual Shipments: Less than 2% of Nvidia’s fiscal 2025 revenue was actually shipped to Singapore, underscoring that the country’s role is mostly administrative.
🇺🇸 U.S. Still Leads: The United States generated $61.3B in sales, significantly higher than Singapore’s $23.7B, reinforcing that much of Nvidia’s core demand is still within the States.
📦 Global Supply Chain: Singapore is a well-known hub for streamlined international operations due to its tax advantages and top-tier infrastructure, a common practice among multinational tech and semiconductor firms.
⚖️ Tax & Regulation: Centralizing billing in low-tax regimes can be beneficial but can also draw regulatory scrutiny. Investors might keep watch for any changes in international tax policies.
Why AI/Semiconductor Investors Should Care: Global tech giants often use centralized billing locations like Singapore for efficiency. Nvidia’s clarification reduces confusion about inflated regional revenue, ensuring investors understand the actual demand distribution. This also highlights how vital transparency and regulatory awareness are in today’s interconnected market—especially as AI and semiconductor companies increasingly operate worldwide.
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ON Semiconductor (NASDAQ:ON)
⚙️ Chipping into Allegro: ON Semi Eyes Automotive Takeover
What The Chip: Bloomberg News reports that ON Semiconductor is exploring a potential acquisition of Allegro MicroSystems, aiming to bolster its automotive chip portfolio. With Allegro’s current market cap near $4.11 billion and ON’s at about $22.29 billion, this deal could reshape the competitive landscape in automotive semiconductors.
Details:
🔋 Automotive Edge: Allegro specializes in power and sensing chips used in electric vehicles and ADAS. “We remain committed to driving automotive innovation and synergy opportunities,” said Hassane El-Khoury, ON Semiconductor’s CEO, in a prior earnings call.
🤝 Broader Portfolio: By acquiring Allegro, ON could add advanced sensor integrated circuits and application-specific analog power ICs to its lineup, enhancing its reach in e-Mobility and ADAS safety features.
🚀 Talent Grab: Allegro’s engineering talent and R&D know-how would be a strategic asset for ON, potentially speeding up new product launches.
📉 Counteracting Headwinds: ON Semi has faced softening demand in some automotive segments. Management reportedly sees an Allegro deal as a way to diversify and offset these challenges.
🔍 Uncertain Outcome: Although ON is pursuing a takeover, Allegro has not signaled willingness to sell. Other bidders could surface, leaving the acquisition’s future unclear.
Why AI/Semiconductor Investors Should Care: This deal underscores a growing focus on automotive semiconductors, a rapidly expanding segment as EVs and autonomous technologies become mainstream. If consummated, the acquisition could accelerate product development cycles and bolster ON Semiconductor’s market share in automotive chips, potentially influencing valuations and competitive dynamics across the industry.
Dell Technologies Inc. (NYSE: DELL)
🤖 Dell Doubling Down on AI Servers
What The Chip: Dell recently reported Q4 FY25 results, showing strength in AI-optimized servers and storage despite ongoing PC market challenges. Management highlighted at least $15 billion in AI server revenue for the coming fiscal year, underscoring Dell’s commitment to generative AI and next-gen infrastructure solutions.
Details:
📈 AI Server Momentum – Dell grew its AI-focused server orders to $10B in FY25 and sees at least $15B in AI server shipments ahead. As Jeff Clarke (Vice Chairman and Co-COO) put it: “Our pipeline expanded sequentially and has grown every quarter since the introduction of the 9680.”
🤝 CSP and Enterprise Demand – Big cloud players (CSPs) account for much of the AI backlog, but enterprises are increasingly jumping in. Clarke noted an expanding enterprise buyer base: “We’re seeing continued progress in AI from enterprise customers, albeit still earlier in their journey.”
🏭 Data Center Modernization – Traditional server revenue rose double digits for the fifth consecutive quarter, helped by consolidation trends freeing up floor space and power. Dell expects this momentum to continue and drive further ISG (Infrastructure Solutions Group) growth.
💰 Financial Highlights – FY25 revenue reached $95.6B, up 8%. EPS hit $8.14, up 10%. The company also returned $3.9B in capital to shareholders while announcing an 18% hike in the annual dividend and a new $10B share repurchase authorization.
💻 PC Refresh on the Horizon – Commercial PC revenue ticked higher, with strong SMB demand as a “leading indicator.” However, consumer demand remains soft. Dell believes an aging installed base, Windows 10 end-of-life, and upcoming AI PC launches will spark a broader refresh cycle.
💾 Storage Strength – PowerStore (midrange storage) delivered double-digit demand growth for three consecutive quarters. “We’re well positioned in some of the fastest-growing categories within storage,” Clarke said, highlighting software-defined and unstructured data solutions.
⚠️ Competitive Pricing Pressures – Despite the upbeat outlook, Dell noted a “more competitive pricing environment” could weigh on gross margin rates, especially in PC segments. Management is balancing growth and profitability across both AI and traditional lines.
Why AI/Semiconductor Investors Should Care: Dell’s strong push into AI servers, along with robust financing and engineering services for high-performance clusters, positions it to capture a meaningful slice of the rapidly expanding AI hardware market. Their extensive supply chain, global service footprint, and direct-to-enterprise sales coverage give Dell an edge in large-scale deployments—a significant consideration for investors evaluating next-generation infrastructure plays.
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[Paid Subscribers] Dell Technologies Showcases AI-Driven Momentum in Q4 Fiscal 2025
Executive Summary
*Reminder: We do not talk about valuations, just an analysis of the earnings/conferences
Dell Technologies Inc. (NYSE: DELL) recently announced its fourth-quarter (Q4) and full-year fiscal 2025 financial results, highlighting strong execution in its Infrastructure Solutions Group (ISG), ongoing customer interest in artificial intelligence (AI) workloads, and a newly expanded share repurchase authorization. For Q4 FY25, Dell reported revenue of $23.9 billion, up 7% year over year (YoY), with full-year revenue reaching $95.6 billion, an 8% YoY increase.
Management credited the quarter’s growth primarily to robust demand in servers—both AI-optimized and traditional—along with a resurgence in the company’s core storage portfolio. Dell’s expanded AI partnerships and backlog, now at $9 billion, underscore the company’s confidence in AI-related hardware opportunities. Notably, Jeff Clarke, Vice Chairman and Chief Operating Officer, cited the introduction of multiple AI-focused server platforms, new midrange storage offerings under the PowerStore family, and a rebranded personal computer (PC) lineup as key drivers of the company’s continued competitiveness. Chief Financial Officer Yvonne McGill also highlighted stronger margins in the ISG segment, cost-saving initiatives, and a focus on shareholder returns, including an 18% dividend increase and a $10 billion expansion in the share repurchase authorization.
Growth Opportunities
Dell’s growth opportunities hinge on three broad technology and industry trends that management repeatedly emphasized during the earnings call:
AI Enablement: Dell is expanding its AI-optimized infrastructure to address the rising computational needs of enterprise and cloud service provider (CSP) customers. During Q4, AI orders demand came in at $1.7 billion, with $2.1 billion in AI-related shipments. Additionally, Dell secured partnerships with innovative firms like xAI and recorded roughly $9 billion of AI servers in backlog. Management noted that AI total addressable market (TAM) for hardware and services could approach $295 billion by 2027, presenting a substantial runway for continued growth.