Wall Street is focused on Nvidia’s (NVDA) graphics processing units (GPUs).
The faster-growing story is sitting beside them
Nvidia 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. Compute 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. That pace is slowing. Analysts expect networking growth of roughly 134% in the quarter about to be reported, still ahead of compute at about 100%.