Nvidia, already the dominant supplier of the chips that power artificial intelligence, has now claimed the top spot in another corner of the datacenter: Ethernet switches.
According to Technetbook, Nvidia has captured the lead in the datacenter Ethernet market, a shift it links to the ongoing boom in AI spending. GuruFocus similarly reports that Nvidia (ticker NVDA) has surged to the No. 1 position in the Ethernet switch market.
Ethernet switches are the networking gear that ties together the racks of servers inside a datacenter, moving data between machines. As companies rush to build out AI systems, they need not just more powerful chips but faster, denser networks to keep those chips fed with data. That demand appears to be reshaping who leads the market for the equipment that connects it all.
The story is notable because it shows Nvidia extending its influence beyond the graphics processors that made it a household name in the AI era. Rather than only selling the compute, the company is increasingly positioned to supply the surrounding infrastructure that AI datacenters depend on.
Both sources frame the move in the context of heavy industry-wide investment in AI, suggesting the networking gains are riding the same wave of capital pouring into datacenters.
Why it matters: a single company climbing to the top of both AI chips and the networking that links them signals how much of the AI buildout could end up concentrated in Nvidia's hands.