Nvidia Declares Itself World's Largest Networking Company on Explosive Growth

Feb 27, 2026 (17 hr ago)

Positive

Nvidia's CEO announced the company is now the world's largest networking firm, driven by massive year-over-year segment expansion.

Networking Segment Ascendancy

CEO Jensen Huang proclaimed Nvidia is now the largest networking company globally, marking a major strategic milestone2
Networking sales reached $11 billion in the fourth quarter, representing a substantial 263% increase year-over-year2
The company's networking business exceeded $31 billion in revenue for the full fiscal year, a tenfold increase since fiscal 20212
Demand for these networking capabilities is broad and expanding beyond initial chatbot applications, supporting the unification of giga-scale AI factories2

Fourth-quarter revenue hit $68.1 billion, with adjusted EPS at $1.62 per share, both results surpassing Wall Street estimates4
Key networking technologies enabling this growth include NVLink, InfiniBand, and Spectrum-X, which connect servers and data centers2
Nvidia reported a 115% increase in inventory, which was interpreted by some analysts as a positive signal for the broader economy4
Strategic collaborations, such as providing networking components to Amazon AWS to pair with their custom Trainium chips, are driving adoption2

Consensus forecasts suggest Nvidia's revenue growth will stabilize at 59% in fiscal 2027, followed by 29% growth in subsequent periods3
Despite strong results, there remains market skepticism regarding whether the current pace of sky-high customer spending can be sustained indefinitely1
Some market observers note that the AI spending boom is causing a shift in value toward semiconductor equipment makers over pure chip designers5