- Nvidia Data Center Compute Revenue Dips for the first time in ten years
- Network sales rise as calculation brakes while China -restrictions create an additional pressure
- Dependency of three customers suggests Nvidia’s vulnerability despite record total revenue
You would be forgiven for having thought that Nvidia’s meteoric increase has made it practically bulletproof, but data from the second quarter of fiscal policy 2026 shows that Chip Giant’s data center calculates revenue that falls for the first time in a decade.
The drip, while small, marks a potential turning point for the company that has led the artificial intelligence hardware boom.
Nvidia again reported the record revenue in general but a graph shared by The next platformHints to a worrying plateau that begins to form in GPU Behemoth’s Core Data Center Compute Business.
No need to get panic … yet
Slide (as you can see above) showed that the sale of GPUs and CPUs that support Nvidia’s AI infrastructure dipped 0.9 percent compared to the previous quarter.
It is not a big drop, but it is remarkable as it is the first sequential decline as the data center calculation became Nvidia’s most important growth source.
Network revenue tells another story where Infiniband networks almost doubled, and Ethernet and other interconnections also show great winnings.
The combined network segment delivered $ 7.25 billion in revenue during the July quarter, suggesting that customers channel more expenses for interconnections connecting AI clusters on scale.
This shift comes as export restrictions to China have already cut into expected calculation sales, which creates more pressure on Nvidia’s management.
CEO Jensen Huang insisted during the earnings call that fiscal policy 2026 and 2027 will still be a record year, but the curve of the data center is still a problem.
Another concern is the company’s dependence on a small number of customers that we reported earlier.
More than half of the data center income now comes from only three named clients, with one alone accounting for over 20% of sales.
The report highlighted $ 9.5 billion from customer A, $ 6.6 billion from customer B and $ 5.7 billion from customer C in the past quarter.
The growth of GPU sales has driven Nvidia’s transformation into one of the most valuable companies in the world, but history shows that expansion curves eventually have to smooth.
Huang has claimed that 50 percent growth in the data center calculates can continue for years, but the market’s realities can force slower lanes.
Currently, the demand for Nvidia’s Blackwell GPUs remains solid, with the offer reportedly sold out for next year.
The company continues to prepare new platforms, but Revenue Plateau suggests that Nvidia’s dominance may be entering a more uncertain phase.
Via The next platform
