By Manali Pradhan, CFA, The Motley Fool
Publication Date: 2026-08-13 06:51:00
Nvidia (NASDAQ: NVDA) continues to be a dominant force in the artificial intelligence (AI) boom, thanks largely to its industry-leading graphics processing units (GPUs). But another type of technology is becoming increasingly important to the company’s growth.
Nvidia generated a record $14.8 billion in data center networking revenue in its fiscal 2027 first quarter (which ended April 26), up 199% year over year. Networking revenue rose from $8.6 billion in its fiscal 2024 to $13 billion in its fiscal 2025 and to $31.4 billion in its fiscal 2026. Its opportunity in the space could become even larger as AI clusters scale further and require increasingly powerful networking infrastructure to connect many thousands of accelerator chips together.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Networking is becoming a major growth engine
Modern AI systems increasingly depend on high-performance networking as well as raw computing power. Training and running increasingly sophisticated models requires massive amounts of data to be moved rapidly among large numbers of accelerators and data storage devices. If the network cannot keep up, communication can become a bottleneck…
