Nvidia takes the lead in data center networking for the first time, as AI infrastructure demand drives the market 39.8% higher.

What happened: Nvidia ranked first by revenue in global data center Ethernet switching in the first quarter, according to IDC's Quarterly Ethernet Switch Tracker. Nvidia's data center Ethernet switch revenue surged 192.7% to $2.1 billion（約3400億円）, capturing a 21.5% share of that segment. The worldwide Ethernet switch market rose 39.8% year over year to $15.4 billion（約2.5兆円）, with data center revenue jumping 61% to $10 billion（約1.6兆円）.

Why it matters: AI spending is lifting demand for faster networking gear. Nvidia's Spectrum-X platform is gaining traction with hyperscalers (large cloud providers) and enterprise customers building AI networks. This shift shows that infrastructure suppliers are benefiting alongside chip makers as companies race to build out AI capabilities.

What to watch: IDC projects that AI deployments should keep supporting demand for high-speed switching through 2026, though easing memory shortages could cool pricing gains. Competitors Cisco, Arista Networks, and Broadcom are expected to keep pressuring the market.