Nvidia's Networking Revenue Soars 263%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Networking Revenue Surge: Nvidia's networking revenue skyrocketed 263% year-over-year to $11 billion in the recent quarter, indicating immense demand driven by AI data center construction, thereby solidifying its market leadership.
- Arista's Record Performance: Arista Networks achieved record revenue of $9 billion in 2025, a 29% year-over-year increase, with AI networking revenue expected to double to $3.2 billion in 2026, highlighting its significant share in data center spending.
- Vertiv's Order Surge: Vertiv Holdings reported a 252% year-over-year increase in organic orders for the fourth quarter, with backlog doubling to $15 billion, and is guiding for a 28% increase in organic net sales for 2026, reflecting strong demand for its power management and cooling solutions.
- AI Market Outlook: Despite skepticism regarding the sustainability of AI spending, analysts forecast a 21% annual earnings growth rate for Arista, suggesting that AI infrastructure companies will continue to experience robust demand amid data center spending cycles.
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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: 167.520
Low
200.00
Averages
264.97
High
352.00
Current: 167.520
Low
200.00
Averages
264.97
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.
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- Partnerships: Nvidia collaborates with several space tech companies, including Starcloud, which successfully launched the first satellite operating an Nvidia H100 GPU in space, showcasing its strategic positioning in the space market.
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- Growth Potential: Although AMD's growth rate exceeds 30%, it needs to enhance its performance to attract growth investors, with several catalysts expected in the latter half of the year, particularly the launch of the Helios AI rack.
- New Product Launch: CEO Lisa Su anticipates that the new MI450 chip will start generating revenue in Q3, and if it performs well, it could encourage investors to load up on AMD stock, driving the price higher.
- Earnings Outlook: AMD's revenue grew by 34% last year, up from 14% the previous year, and if it can maintain this growth and improve margins, its current 30x P/E ratio could become more attractive, although its margin performance remains to be seen.
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- Market Validation: The contract's value exceeds Nebius's valuation from the previous day, solidifying its position as an emerging cloud service provider and demonstrating the viability of its business model, attracting more investor interest.
- Technological Investment: Meta will utilize Nvidia's latest Vera Rubin chips, expected to provide $12 billion worth of computing capacity starting in 2027, which not only enhances Meta's technological capabilities but also presents significant revenue growth potential for Nebius.
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- Market Performance Review: AMD's stock has declined by 8% this year, contrasting sharply with a 77% surge in 2025, as investor excitement has cooled despite a growth rate exceeding 30% annually.
- AI Chip Opportunities: The company plans to launch its Helios AI rack in the latter half of 2026, which is expected to drive revenue from new chips, and successfully capturing market share from Nvidia could trigger a sustained rally in stock prices.
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See More
