bottleneckScore 80/100Research
Data center networking revenue nearly tripled YoY to $15B, driven by next-generation XDR deployments and interconnect scale-up
Jensen Huang· NVIDIA· AI· 2026-05-20· about NVIDIA (NVDA)
“While data center computing revenue of $60 billion was up 77% year over year, while data center networking revenue of $15 billion nearly tripled year over year.”
Why it matters
Networking revenue 3x YoY (vs compute 77% YoY) signals that interconnect is scaling faster than GPUs. This indicates that data center fabric and networking components are becoming the critical bottleneck, not GPUs themselves.
Investment implication
High-speed networking components (optical transceivers, switching ASICs, InfiniBand connectors) will face acute supply constraints. Optical networking vendors and component suppliers should see accelerated capex. Power delivery for high-speed networking may become a secondary bottleneck.