News
Nvidia networking revenue reaches 21% of total data center sales following 263% annual growth
Wednesday, February 25, 2026 at 09:39 PM
Nvidia data center networking revenue has grown to account for 21.3% of its total data center sales, up from 8.5% in the previous year. This represents a 263% year-over-year growth rate, with networking revenue reaching approximately $11 billion. This segment's revenue is now triple that of the company's gaming division and is approaching the scale of Broadcom's total quarterly revenue.
Context
Nvidia is undergoing a structural transformation as its data center segment is projected to reach 90% of total revenue for FY26, totaling $193.74 billion. This shift underscores the company's evolution from a gaming-centric hardware provider into the foundational infrastructure layer for the global AI economy. The transition is fueled by the aggressive production ramp of the Blackwell architecture and sustained hyperscaler demand, as the company capitalizes on a massive pipeline of business opportunities exceeding $500 billion through mid-2026.
A critical driver of this growth is the networking division, which is forecast to surge 142% year-over-year to $31.38 billion. By integrating high-bandwidth solutions like Spectrum-X and NVLink directly into its compute stacks, Nvidia has moved beyond selling individual chips to delivering entire "AI factories." This full-stack strategy allows the company to capture a higher percentage of data center capital expenditure as cloud providers and sovereign entities race to build out accelerated computing infrastructure.
Sources (1)
Related Companies
Nvidia
NVDA