Nvidia Reports $8.2 Billion Networking Revenue in Q3, Up 162%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Source: Fool
- Surging Networking Revenue: Nvidia's networking revenue reached $8.2 billion in Q3 of fiscal 2026, marking a 162% year-over-year increase, indicating robust growth in AI data center networking solutions and further solidifying its market leadership.
- Strong Customer Demand: CFO Colette Kress disclosed that nearly 90% of customers purchasing complete AI systems also buy networking products, highlighting the rapidly rising demand for AI networking solutions that is driving overall revenue growth for the company.
- Market Share Increase: According to IDC, Nvidia now holds an 11.6% share of the data center Ethernet switch market, ranking behind only Arista Networks and Cisco Systems, underscoring its significant position in the fast-growing Ethernet market.
- Future Growth Potential: MarketsandMarkets forecasts the AI networking market to grow from $14.9 billion in 2025 to $46.8 billion by 2029, representing a compound annual growth rate of 33.8%, providing Nvidia with a new growth engine despite competitive pressures.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.860
Low
200.00
Averages
264.97
High
352.00
Current: 214.860
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Market Reaction and Growth Potential: Despite Nvidia's stock price dropping after its last four earnings releases, the company reported an 85% year-over-year revenue increase, indicating that the market may misunderstand its growth potential, as it is on track to become the most profitable company globally in the near future.
See More
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See More
