Nvidia Networking Hits $11B as Mellanox Bet Pays Off

Nvidia’s networking division reached $11 billion in quarterly revenue, up 263% year over year, after its Spectrum-X platform drove the company to the No. 1 spot in data center Ethernet switching. The surge follows Nvidia’s 2020 Mellanox acquisition, now delivering strong returns as AI infrastructure demand pushes switching revenue to $2.1 billion in Q1 2026. IDC data show the broader data center Ethernet market expanding 61% to $10 billion, with Nvidia capturing 21.5% share and overtaking Cisco. Traditional rivals Arista and Broadcom face mounting pressure from buyers favoring integrated AI networking stacks.