The Ethernet switch market saw a major boost in 4Q25, driven by AI workloads in data centers. Data center switches grew 63% year-over-year to $9.9 billion, with high-speed 800G and 200/400Gb models leading the surge.

Full-year data center revenue reached $32.5 billion, reflecting strong demand from hyperscalers, cloud providers, and enterprises upgrading networks for AI and low-latency applications. Non-datacenter switches grew more modestly, indicating steady but less dramatic investment in campus and branch networks.

Regional growth was broad, with the Americas leading at 45.4% YoY in Q4, followed by EMEA and APAC.

Vendor performance highlighted the AI-driven shift: Cisco and Arista captured significant data center share, while NVIDIA’s Ethernet switch revenue nearly tripled, emphasizing hyperscaler adoption of high-performance networking.

Overall, the market signals a renewed investment cycle in network infrastructure. Organizations upgrading to faster, more reliable networks can support AI, cloud computing, and real-time applications, while vendor competition and global demand for high-speed Ethernet continue to shape the market.

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