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NVIDIA Corporation reported a 64% sequential increase in networking revenues for Q1 fiscal 2026, totaling approximately $5 billion. This growth is attributed to rising demand for AI factory buildouts and large AI clusters from hyperscalers and enterprises. NVIDIA’s networking solutions, which include high-performance chips and its NVLink interconnect that offers 14 times the bandwidth of PCIe Gen 5, are key drivers in efficiently scaling AI workloads.
NVIDIA’s Ethernet platform, Spectrum-X, is projected to generate over $8 billion in annualized revenues, with deployments from companies like Microsoft and Google Cloud. The company anticipates networking revenues to grow 57.7% year-over-year, reaching $20.5 billion in fiscal 2026.
Competitors like Broadcom and Marvell Technology are expanding in the AI networking space but lack NVIDIA’s comprehensive end-to-end solution. NVIDIA’s shares have risen 22.2% year-to-date, outpacing the sector’s 7.4% gain, and the forward price-to-earnings ratio stands at 33.81, above the sector average of 27.39.
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