Nvidia Could Hit $7.5 Trillion in Value Thanks to This Overlooked Business Opportunity
Nvidia's networking business gives it another way to capture the tech sector's AI infrastructure spending.
Overview
Nvidia (NASDAQ: NVDA) continues to be a dominant force in the artificial intelligence (AI) boom, thanks largely to its industry-leading graphics processing units (GPUs). But another type of technology is becoming increasingly important to the company's growth.
Nvidia generated a record $14.8 billion in data center networking revenue in its fiscal 2027 first quarter (which ended April 26), up 199% year over year. Networking revenue rose from $8.6 billion in its fiscal 2024 to $13 billion in its fiscal 2025 and to $31.4 billion in its fiscal 2026. Its opportunity in the space could become even larger as AI clusters scale further and require increasingly powerful networking infrastructure to connect many thousands of accelerator chips together.
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Originally published at www.fool.com.