The 800G effect
A big piece of the Ethernet market is 800G.
Dell’Oro noted that 800 Gbps switches comprised the bulk of the Ethernet and InfiniBand switch shipments and revenues in AI back-end networks during the quarter.
“The rapid ramp of NVIDIA’s Blackwell Ultra platform fueled strong demand for 800 Gbps InfiniBand switches, propelling a surge in InfiniBand switch sales in 2Q 2025,” said Sameh Boujelbene, VP at Dell’Oro Group.
However, she added that “Ethernet is still maintaining the lead, catapulted by the rapid adoption in some large AI clusters built by the hyperscalers as well as the new emerging Neo Cloud Service Providers.”
Celestica, Nvidia and Arista dominate Ethernet
Celestica, Nvidia and Arista led the Ethernet segment, collectively comprising nearly two-thirds of the Ethernet sales in the market.
During the second quarter, Celestica reported $2.89 billion in revenue, up 21% year-over-year.
One of Celestica’s key 800G products is the DS4100, a 1U 800G per port top-of-rack, leaf/spine switch is focused on serving the bandwidth demands of AI/ML data center networking across enterprise, service provider and cloud providers.
Arista also saw its revenues jump to $2.21 billion, up 10.0% sequentially and 30.4% year-over-year. It is making traction with its 7700R4 Distributed Etherlink Switch (DES) for its latest Ethernet-based AI cluster.
Finally, NVIDIA also had a strong revenue showing. Driven by strong Data Center growth of $41.1 billion, NVIDIA reported fiscal 2026 revenue of $46.7 billion, beating estimates with a 56% year-over-year increase.
The company’s Spectrum-X, which couples an NVIDIA Spectrum-X Ethernet switch and the NVIDIA Spectrum-X Ethernet SuperNIC™, connects AI compute fabrics within the data center and scales across multiple AI data centers with Spectrum-XGS Ethernet.
Already, hyperscalers are finding utility with the Spectrum-X platform. CoreWeave will be among the first to connect its data centers with Spectrum-XGS Ethernet.
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