Nvidia's 90% of Customers Now Buy Networking Products, Revenue Up 162%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Yahoo Finance
- Surging Demand for Networking: Nvidia reported $8.2 billion in networking revenue for Q3 FY2026, marking a 162% year-over-year increase, indicating strong growth potential in the AI data center networking market.
- High Customer Attach Rate: CFO Colette Kress disclosed that nearly 90% of customers purchasing AI systems also buy networking products, which not only boosts overall sales but also enhances customer loyalty.
- Steady Market Share Growth: Nvidia now holds an 11.6% share of the data center Ethernet switch market, with revenues for ultra-fast 800GbE switches nearly doubling, demonstrating its strengthened market position despite competition.
- Future Growth Potential: Market research forecasts the AI networking market to grow from $14.9 billion in 2025 to $46.8 billion by 2029, representing a 33.8% CAGR, providing Nvidia with a new growth engine even as its GPU market share may erode.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 187.050
Low
185.00
Averages
255.63
High
352.00
Current: 187.050
Low
185.00
Averages
255.63
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
