The drop, while small, marks a potential turning point for the company which has led the artificial intelligence hardware boom.<\/p>\n
Nvidia once again reported record revenues overall, but a graph shared by The Next Platform<\/a>, hints at a worrying plateau beginning to form in the GPU behemoth\u2019s core data center compute business.<\/p>\n You may like<\/p>\n \n (Image credit: The Next Platform)No need to panic… yet<\/p>\n The slide (which you can see above) showed that the sales of GPUs and CPUs that underpin Nvidia\u2019s AI infrastructure dipped 0.9 percent compared with the previous quarter.<\/p>\n That\u2019s not a big drop, but it is notable since it\u2019s the first sequential decline since data center compute became the Nvidia\u2019s main source of growth.<\/p>\n Networking revenues tell a different story, with InfiniBand networking nearly doubling, and Ethernet and other interconnects also showing big gains.<\/p>\n The combined networking segment delivered $7.25 billion in revenue during the July quarter, suggesting customers are channeling more spending into interconnects that link AI clusters at scale.<\/p>\n That shift comes as export restrictions to China have already cut into expected compute sales, creating more pressure on Nvidia\u2019s leadership.<\/p>\n Chief executive Jensen Huang insisted during the earnings call that fiscal 2026 and 2027 will still be record years, but the curve on the data center chart is still a concern.<\/p>\n Another worry is the company\u2019s reliance on a small number of customers, which we reported on previously.<\/p>\n You may like<\/p>\n More than half of data center revenue now comes from just three unnamed clients<\/a>, with one alone accounting for over 20% of sales.<\/p>\n The report highlighted $9.5 billion from Customer A, $6.6 billion from Customer B, and $5.7 billion from Customer C in the most recent quarter.<\/p>\n Growth in GPU sales has powered Nvidia\u2019s transformation into one of the most valuable companies in the world, but history shows that expansion curves eventually have to level off.<\/p>\n Huang has argued that 50 percent growth in data center compute can continue for years, but market realities may force slower trajectories.<\/p>\n For now, demand for Nvidia\u2019s Blackwell GPUs remains solid, with supply reportedly sold out into next year.<\/p>\n The company continues to prepare new platforms, but the revenue plateau hints that Nvidia\u2019s dominance may be entering a more uncertain phase.<\/p>\n Via The Next Platform<\/a><\/p>\n You might also like<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia data center compute revenue dips for first time in ten yearsNetworking sales surge as compute slows while…\n","protected":false},"author":2,"featured_media":143608,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,61],"class_list":["post-143607","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/143607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=143607"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/143607\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/143608"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=143607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=143607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=143607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Nvidia](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/09\/NpRVAHr99DzhFvwd7sL72c.jpg\")
\n<\/p>\n