From Yahoo Finance, August 10:
When Nvidia (NVDA) reports its second quarter earnings on Aug. 27, investors will focus squarely on the company’s data center results. After all, that’s where the chip giant realizes revenue on the sale of its high-powered AI processors.
But the Data Center segment includes more than just chip sales. It also accounts for some of Nvidia’s most important, though often overlooked, offerings: its networking technologies.
Composed of its NVLink, InfiniBand, and Ethernet solutions, Nvidia’s networking products are what allow its chips to communicate with each other, let servers talk to each other inside massive data centers, and ultimately ensure end users can connect to it all to run AI applications.
“The most important part in building a supercomputer is the infrastructure. The most important part is how you connect those computing engines together to form that larger unit of computing,” explained Gilad Shainer, senior vice president of networking at Nvidia.
That also translates into some big sales. Nvidia’s networking sales accounted for $12.9 billion of its $115.1 billion in data center revenue in its prior fiscal year. That might not seem impressive when you consider that chip sales brought in $102.1 billion, but it eclipses the $11.3 billion that Nvidia’s second-largest segment, Gaming, took in for the year.
In Q1, networking made up $4.9 billion of Nvidia’s $39.1 billion in data center revenue. And it’ll continue to grow as customers continue to build out their AI capacity, whether that’s at research universities or massive data centers.
“It is the most underappreciated part of Nvidia's business, by orders of magnitude,” Deepwater Asset Management managing partner Gene Munster told Yahoo Finance. “Basically, networking doesn't get the attention because it's 11% of revenue. But it's growing like a rocket ship.”....
....MUCH MORE
Recently on NVLink - Hot Chips Symposium 2025 Begins Today, August 24
We'll have more on this aspect of the business after the earnings report.
