Nvidia's Network Business Emerges as 'Second Engine': $11B Quarterly Revenue Surpasses Cisco's Annual Total, Up 267% YoY

For those following tech giants, Nvidia's computing business often takes center stage, but its network segment has quietly become a 'second engine'. Recent data shows its network business generated $11 billion in revenue in the last fiscal quarter, a 267% year-on-year increase, with annual revenue exceeding $31 billion—making it the company's second-largest revenue source after computing.

This business originated from Nvidia's $7 billion acquisition of Israeli network firm Mellanox in 2020. Its product line includes NVLink (GPU interconnection in data centers), InfiniBand switches, Spectrum-X Ethernet platforms, etc., forming the network foundation of Nvidia's 'AI Factory'. Notably, Zacks senior strategist Kevin Cook points out that this quarterly revenue even surpasses the annual revenue of Cisco's entire network division.

Kevin Deierling, senior vice president in charge of the business, says Nvidia is one of the few vendors that can provide a complete full-stack network solution, selling products through partner channels rather than directly to customers.