Nvidia’s Hidden $60 Billion Business Is About to Overtake Broadcom
Nvidia’s Hidden $60 Billion Business Is About to Overtake Broadcom
Publish Date: 2026-05-23 10:59:00
Source Domain: 247wallst.com
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Evolution Beyond GPUs: Investors have long viewed artificial intelligence primarily through the lens of GPU technologies, but AI data centers now depend on ultra-fast networking capable of managing vast amounts of data with minimal delay.
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Networking as a Key Component: Networking hardware has become a critical focus in the tech sector as AI data centers are more bottlenecked by data transfer speeds rather than raw computing power.
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Leading Networking Providers: Companies such as Broadcom, Arista Networks, and Cisco Systems have established dominant roles in providing networking solutions for AI.
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Nvidia’s Explosive Growth: Nvidia has quietly built an extensive AI networking empire that outpaces its competitors. Its quarterly networking revenue reached $15 billion, which when annualized, suggests a $60 billion revenue run rate for its networking segment.
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Full-Stack AI Infrastructure Provider: Nvidia’s strategy of offering GPUs, software, networking hardware, and data center systems has positioned it as a leader in full-stack AI infrastructure, outcompeting traditional networking giants.
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Acquisitions Driving Growth: Nvidia’s acquisition of Mellanox provided control over InfiniBand technology, which helps in minimizing data latency between GPUs, crucial for efficient AI workloads.
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Market Mispricing: Despite its vast networking capabilities and diverse offerings, investors may still underappreciate Nvidia’s value due to its historical identity as a GPU company.
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Future Valuation Challenge: As the company’s involvement spans several industries beyond semiconductors, reevaluating its valuation is essential for reflecting its comprehensive role in AI infrastructure.
