Nvidia's overlooked "second engine": Networking business revenue of $11 billion in a single quarter, surpassing Cisco, with a year-on-year increase of 267%.

According to 1M AI News , Nvidia's networking business generated $11 billion in revenue in the last fiscal quarter, a 267% year-over-year increase, and over $31 billion in full-year revenue. It is the company's second-largest revenue source after computing, but it has almost never been a focus in Nvidia's public narrative. Kevin Cook, senior equity strategist at Zacks Investment Research, pointed out that the $11 billion in revenue from this segment alone exceeds the annual revenue of Cisco's entire networking division. This business originated from Nvidia's $7 billion acquisition of Israeli networking company Mellanox in 2020. Its product line covers NVLink (GPU interconnect in data centers), InfiniBand switches, the Spectrum-X Ethernet platform, and packaged optical switches, collectively forming the network infrastructure layer of what Nvidia calls its "AI factory."

Kevin Deierling, senior vice president in charge of the business, said that NVIDIA is one of the few network vendors in the market that can provide a complete full-stack solution, which is sold through partner channels rather than shipped directly to customers.