{"slug": "nvidia-earnings-could-reveal-its-fastest-growing-business-isn-t-chips-chart-of", "title": "Nvidia earnings could reveal its fastest-growing business isn't chips: Chart of the Day", "summary": "Nvidia's networking business generated nearly $15 billion last quarter, up from roughly $3 billion per quarter two years ago, and is expected to approach $17 billion when the company reports earnings on Wednesday, outpacing its GPU compute growth at nearly 200% year-over-year versus 77% for compute. The networking segment, including Spectrum-X, InfiniBand, and NVLink, is becoming a key growth driver as AI data centers require high-speed connections between custom processors, a strategy StockBrokers.com's Jessica Inskip described as 'investing in the bottlenecks that are the AI infrastructure.'", "body_md": "Wall Street is focused on Nvidia's ([NVDA](https://finance.yahoo.com/quote/NVDA/)) graphics processing units (GPUs). The faster-growing story is sitting beside them.\n\nNvidia has quietly built a networking operation that generated nearly $15 billion last quarter, up from roughly $3 billion per quarter two years ago. Wall Street expects that figure to approach $17 billion when the company reports earnings on Wednesday.\n\nCompute still dwarfs networking inside Nvidia's Data Center business. But networking has been growing faster, up nearly 200% year over year in the last quarter compared with 77% for compute.\n\nThat pace is slowing. Analysts expect networking growth of roughly 134% in the quarter about to be reported, still ahead of compute at about 100%.\n\nThe change goes straight to one of the biggest questions hanging over Nvidia.\n\nEveryone is designing AI chips these days. Alphabet ([GOOG](https://finance.yahoo.com/quote/GOOG/), [GOOGL](https://finance.yahoo.com/quote/GOOGL/)), Amazon ([AMZN](https://finance.yahoo.com/quote/AMZN/)), Microsoft ([MSFT](https://finance.yahoo.com/quote/MSFT/)), Meta Platforms ([META](https://finance.yahoo.com/quote/META/)), and other [hyperscalers](https://finance.yahoo.com/markets/article/big-tech-is-paying-for-the-ai-boom-and-chipmakers-are-cashing-in-chart-of-the-day-114043038.html) are spending billions developing or commissioning custom processors that can handle some workloads without an Nvidia GPU.\n\nBut those chips still have to talk to one another.\n\nAs AI data centers connect thousands of accelerators into giant computing systems, moving data among those processors becomes a challenge in its own right. That has pushed the [AI trade deeper into networking, memory, storage, and other infrastructure](https://finance.yahoo.com/markets/article/this-new-ai-trade-is-leaving-nvidia-and-micron-in-the-dust-204250157.html).\n\nJessica Inskip, director of investor research at StockBrokers.com, described Nvidia's strategy on [Yahoo Finance's Opening Bid on Tuesday](https://www.youtube.com/watch?v=T3_Uq1pNxZ0) as \"investing in the bottlenecks that are the AI infrastructure.\"\n\nNetworking is one of them.\n\nNvidia increasingly sells the plumbing that keeps huge AI systems running. Its [Spectrum-X](https://www.nvidia.com/en-us/networking/spectrumx/) products connect servers over high-speed [Ethernet](https://en.wikipedia.org/wiki/Ethernet), while [InfiniBand](https://www.nvidia.com/en-us/networking/infiniband-adapters/) and [NVLink](https://developer.nvidia.com/blog/scaling-ai-inference-performance-and-flexibility-with-nvidia-nvlink-and-nvlink-fusion/) help move enormous amounts of data between processors quickly enough to keep expensive chips from sitting idle.\n\nMore recently, Nvidia has pushed [NVLink Fusion](https://developer.nvidia.com/blog/scaling-ai-inference-performance-and-flexibility-with-nvidia-nvlink-and-nvlink-fusion/), which lets companies plug their own custom processors into Nvidia's broader system of high-speed connections, networking, power, and cooling. Think of it as designing an entire server rack to work like one giant computer, rather than selling the chips one by one.\n\nThat changes the competitive equation.\n\nNvidia's stock has already been acting differently from much of the chip industry.\n\nSince the semiconductor trade peaked around June 22, Nvidia stock has gone essentially nowhere, while the iShares Semiconductor ETF ([SOXX](https://finance.yahoo.com/quote/SOXX/)) has fallen roughly 20%. As [Tuesday's Chart of the Day](https://finance.yahoo.com/markets/article/software-is-crushing-chips-by-a-record-margin-chart-of-the-day-100000109.html) showed, Nvidia largely avoided the chip bear market that swallowed most of the group.", "url": "https://wpnews.pro/news/nvidia-earnings-could-reveal-its-fastest-growing-business-isn-t-chips-chart-of", "canonical_source": "https://ca.finance.yahoo.com/news/nvidia-earnings-could-reveal-its-fastest-growing-business-isnt-chips-chart-of-the-day-100000332.html", "published_at": "2026-08-26 10:00:00+00:00", "updated_at": "2026-08-26 10:13:18.014083+00:00", "lang": "en", "topics": ["ai-infrastructure", "ai-chips", "ai-products"], "entities": ["Nvidia", "Alphabet", "Amazon", "Microsoft", "Meta Platforms", "StockBrokers.com", "Jessica Inskip", "iShares Semiconductor ETF"], "alternates": {"html": "https://wpnews.pro/news/nvidia-earnings-could-reveal-its-fastest-growing-business-isn-t-chips-chart-of", "markdown": "https://wpnews.pro/news/nvidia-earnings-could-reveal-its-fastest-growing-business-isn-t-chips-chart-of.md", "text": "https://wpnews.pro/news/nvidia-earnings-could-reveal-its-fastest-growing-business-isn-t-chips-chart-of.txt", "jsonld": "https://wpnews.pro/news/nvidia-earnings-could-reveal-its-fastest-growing-business-isn-t-chips-chart-of.jsonld"}}