Nvidia surpassed Cisco in data center Ethernet sales.

Nvidia surpassed Cisco in networking revenue in Q2/2026. Revenue grew with the launch of Blackwell and NVSwitch, which account for about 1/3 of networking revenue.

The company is licensing NVLink Fusion to third parties, expanding its presence in the custom accelerator market. Dell and NVIDIA are expanding their infrastructure offerings for AI agents and workstations, with availability through 2027. Nvidia won a CPU supply order from an AI startup, Modal, challenging Intel and AMD in the server CPU market.

Blackwell, for example, offers greater processing capacity, while NVSwitch connects GPUs more quickly. This changes how AI machines operate, allowing complex processes to be solved in less time. Cisco's networking revenue, for its part, came in at US$ 17,300,000,000, slightly behind.

The difference is small, but it represents a significant shift in the market. Even so, the specific date of the overtaking was not confirmed, which may raise doubts about the reality of the numbers. Availability in Brazil was not mentioned, which may limit access to these solutions locally. Dell'Oro Group analyst Sameh Boujelbene highlighted that Nvidia's approach has made the company stand out. The integration makes it easier to deploy solutions and speeds up time to market. Ben Mabey, CTO of Recur, an artificial intelligence company, agrees.

'When you think about our workloads, it makes LLMs workload training seem easy compared to the amount of data that has to be moved around,' he told The Register. 'In the biological space and sciences in general, it's not well appreciated just how big the data actually is,' he added, in a free translation.

Nvidia expands its influence in custom accelerators

Nvidia's presence in data center networking is gaining strength with Blackwell and NVSwitch, which drive networking revenue and expand its influence in custom accelerators. These products run at the core of the company's networking revenue, which reached US$ 17,500,000,000 in Q2/2026, surpassing Cisco. Partnerships with Dell and wins in CPU supply orders, such as the one from the startup Modal, show that the company is diversifying its AI infrastructure, not just in GPUs. Availability of infrastructure offerings for AI agents and workstations extends through 2027, opening space for startups and large companies seeking efficiency.