supplierScore 60/100Watch
Networking revenue grew strongly in Data Center due to demand for high-speed Ethernet adapters including ConnectX-6, ConnectX-7, and Spectrum-4 400G platform
Jensen Huang· NVIDIA· AI· 2022-08-25· about NVIDIA (NVDA)
“Networking led growth this quarter with strong demand from our high-speed Ethernet adapters and design win momentum toward next-generation adapters, including the ConnectX-6 and ConnectX-7. We also see growing interest from cloud service providers for our new Spectrum-4 400-gigabit per second Ethernet networking platform.”
Why it matters
NVIDIA's own networking products (ConnectX, Spectrum) are becoming critical dependencies for hyperscaler AI infrastructure. This indicates NVIDIA is moving into the networking supply chain as a strategic component provider.
Investment implication
NVIDIA's vertical integration into networking reduces opportunities for standalone Ethernet switch/NIC vendors (Mellanox-owned NVIDIA competitors like Broadcom) in the AI data center space. However, competitors supplying CPUs and memory for these data centers remain critical.