Nvidia’s Spectrum-X platform enters mass production, driving a 199% surge in networking revenue to $15 billion in Q1.
Nvidia reported a 199% year-over-year increase in networking revenue to $15 billion in its fiscal first quarter, fueled by adoption of its Spectrum-X Ethernet Photonics platform. The platform, the first co-packaged optics (CPO) Ethernet switch in mass production, delivers 5x lower network power and 64x better signal integrity, addressing data center power constraints and network bottlenecks in AI infrastructure.
The company’s total revenue rose 85% to $81.7 billion, with data center revenue alone reaching $75.2 billion. Key customers like CoreWeave, Lambda, and Oracle have adopted the new platform, while suppliers TSM and Lumentum saw revenue double, with Lumentum securing multi-hundred-million-dollar orders for 2027.
Nvidia’s shift into controlling both the processing and networking layers of AI systems strengthens its competitive position in the rapidly expanding AI ecosystem. The move targets a critical bottleneck in AI data centers, where power and network limitations have become major constraints for scaling infrastructure.