Nvidia's Israeli Networking Business Booms to $32B in First Half

Nvidia's Israeli networking business has experienced significant growth, with revenue reaching $32.3 billion in the first half of fiscal 2027. This figure surpasses the previous full-year total and represents a substantial increase from the $31.38 billion reported in fiscal 2026.

The company's networking revenue is attributed to its acquisition of Mellanox, a leading developer of high-speed communications technologies for data centers, in March 2019 for approximately $6.9 billion in cash. Much of the technology behind Nvidia's networking business traces back to Mellanox and the company's development centers in Israel.

Nvidia has expanded its R&D operations in Israel since acquiring Mellanox, with a significant portion of its networking revenue estimated to rely on technologies originating from the acquired company and the Israeli development centers. This estimate suggests that around 70% of Nvidia's connectivity business is based on these technologies.