- Nvidia’s networking sales jumped 143% to $313.4 billion in the fiscal year that ended in January 2026, and now form a bigger portion of the overall topline.
- The networking business is built upon Nvidia's 2020 acquisition of Israeli networking firm Mellanox.
- Nvidia reported blowout results and issued an upbeat forecast on Wednesday.
As investors remain fixated on Nvidia’s fast-expanding data center segment, the company’s networking division, which sells fiber-optic interconnects and switches that link servers inside data centers, has also delivered explosive growth. And that might be because of a bet Nvidia made back in 2020.
Sales from the networking segment surged 143% to $313.4 billion in the fiscal year ended January 2026. That’s higher than the 68.2% sales growth in the data center segment and 65.5% growth in overall sales.
Nvidia acquired Mellanox Technologies, an Israeli-American firm that supplied networking gear for data centers, for $6.9 billion six years ago. At the time, Nvidia beat rival bidders, including Intel, to secure the deal, and Mellanox’s InfiniBand and Ethernet technologies now form the core of Nvidia’s data-center networking business.
The contribution of the networking business to Nvidia’s overall business jumped to about 14% last year, compared to 10% in the year prior.
“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 said on Wednesday’s earnings call.
Nvidia’s networking revenue surged 51% in the year that ended January 2025. Before that, Nvidia reported combined revenue for the networking and compute businesses. Sales for the combined segment surged 212% to $47.5 billion in the year ended January 2024, driven by a sharp rise in demand for data center chips amid the AI boom.
“So the way we think about networking is really an extension, it's -- we offer everything openly so that people could decide to mix and manage in different scale and however they would like to integrate it into their bespoke data center,” CEO Jensen Huang said on the post-earnings call.
Nvidia reported blowout results for its fourth quarter on Wednesday and issued an upbeat forecast, signaling that chip demand remains strong. The stock, however, saw a muted reaction, leaving investors frustrated.
On Stocktwits, the retail sentiment for NVDA shifted to ‘extremely bullish’ from ‘neutral’ the previous day.
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