Revitalizing the Dormant Network Switch Market with AI Innovations • The Register

The datacenter network switch market is experiencing significant growth, largely driven by the rise of AI. According to IDC, revenue reached $11.7 billion in Q1 2025, a 32.3% increase year-over-year, with datacenter switch revenue soaring by 54.7%. The demand for high-bandwidth, low-latency infrastructure to support AI workloads is a key factor in this boom. Notably, revenue from 200/400 GbE switches surged by 189.7%, while newly tracked 800 GbE switches generated $350.8 million, accounting for 5% of the market. Nvidia dominated the sector, with switch revenues skyrocketing by 760.3% to $1.46 billion. Arista’s revenue increased by 27.1%, but Cisco saw a decline of 3.2%, indicating stronger competition. Overall, related markets like wireless LAN also showed growth, although less dramatic, reflecting a stabilizing supply and demand after prior disruptions. Innovations in technology continue to drive advancements in the networking sector.

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