- NVIDIA‘s data center networking sales skyrocketed 143% year-over-year, reaching $31.34 billion for fiscal year 2026.
- This explosive growth is driven by its 2020 acquisition of Israeli networking firm, Mellanox Technologies.
- The networking division’s revenue now accounts for approximately 14% of Nvidia’s total revenue, up from 10% the prior year.
- CEO Jensen Huang positioned networking technology as a flexible “extension” for integrating into bespoke data centers.
While Nvidia‘s data center segment captured investor attention, its networking arm delivered truly explosive results for the fiscal year ending January 2026. Sales in that division, which sells the fiber-optic switches linking servers, surged 143% to $31.34 billion according to the company’s latest earnings report. However, this stellar performance might be attributed to a strategic bet made six years ago.
Nvidia acquired Israeli-American firm Mellanox Technologies for $6.9 billion in 2020, outbidding rivals including Intel. Consequently, Mellanox’s InfiniBand and Ethernet technologies now form the foundation of Nvidia’s high-growth networking business. “For the full year, our networking business exceeded $31 billion in revenue, up more than 10x compared to fiscal 2021, the year we acquired Mellanox,” CFO Colette Kress stated on Wednesday’s earnings call.
Meanwhile, the networking segment’s contribution to Nvidia’s overall business jumped to about 14% last year, up from 10%. CEO Jensen Huang described the offering as an “extension” that customers can openly integrate into their custom data centers. The company’s blowout quarterly results and upbeat forecast signal sustained strong demand for its chips.
Consequently, the stock saw a muted reaction, frustrating some investors. On social trading platform Stocktwits, retail sentiment for NVDA nonetheless shifted to ‘extremely bullish’ after the announcement.
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