# Nvidia becomes the top vendor in data center Ethernet switching revenue > Source: > Published: 2026-06-18 13:17:18+00:00 # Nvidia becomes the top vendor in data center Ethernet switching revenue The chipmaker's $6.9 billion Mellanox acquisition is paying off in ways few predicted, with 647% year-over-year revenue growth in the networking segment. Nvidia just claimed the top spot in data center Ethernet switching revenue for the first time. In Q2 2025, Nvidia pulled in $2.3 billion in data center Ethernet switch revenue, a 647% year-over-year increase that gave it a 25.9% market share. That’s enough to leapfrog Arista Networks and Cisco, two companies that have owned this space for years. ## From chip company to networking giant The story here starts in April 2020, when Nvidia acquired Mellanox Technologies for $6.9 billion. Mellanox gave Nvidia the foundation for what eventually became the Spectrum-X Ethernet platform. Spectrum-X combines Ethernet switches with Data Processing Units, or DPUs, to create high-performance networking fabrics specifically optimized for AI workloads. The growth trajectory has been steep. In Q1 2025, Nvidia generated approximately $1.46 billion in data center Ethernet switch revenue, representing an 8.6x year-over-year increase. By Q2 2025, that figure jumped to $2.3 billion. As of Q1 2026, Nvidia maintained its position at the top of the leaderboard in a market that grew 39.8% year-over-year to reach $15.4 billion. ## The AI infrastructure arms race is reshaping the market Overall Ethernet switch sales exceeded $8 billion in Q3 2025, more than double from three years prior. Nvidia held an 11.6% share in that quarter when measured across all Ethernet switching, not just data center. The data center-specific segment is where Nvidia’s dominance is most pronounced. ## What this means for investors The $6.9 billion Mellanox acquisition now looks like one of the shrewdest deals in recent tech history. A single quarter of Ethernet switching revenue, $2.3 billion, represents a third of the entire acquisition price. Traders should watch Nvidia’s networking segment as a leading indicator of broader AI infrastructure spending. The overall data center Ethernet switch market grew nearly 40% year-over-year as of Q1 2026. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).