Server-Class Ethernet NIC Revenues Surge Over Past Two Years

Crehan Research reports market more than doubled, driven by generative AI and cloud computing

Mar. 9, 2026 at 2:20pm by Ben Kaplan

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According to the latest report from Crehan Research, server-class Ethernet NIC revenues have more than doubled over the past two years, surpassing $13 billion in 2025. The rapid growth has been driven primarily by the deployment of high-speed Ethernet NICs in generative AI networks, with 200 gigabit Ethernet (GbE) and 400GbE NIC sales tripling in the past year alone.

Why it matters

The explosive growth in server-class Ethernet NIC revenues highlights the critical role these foundational networking components play in powering the rapid advancements in generative AI and cloud computing. As demand for high-speed, low-latency connectivity continues to surge, companies that manufacture and supply these NICs are poised to benefit significantly.

The details

Crehan Research president Seamus Crehan noted that the server-class Ethernet NIC market has seen "nearly a vertical straight line trajectory in revenue growth" following the initial release of ChatGPT. High-speed Ethernet NICs are essential for connecting GPUs and XPUs in back-end networking, as well as serving as a common front-end connection for high-speed Ethernet DPUs/SmartNICs. While generative AI has been the primary driver of recent growth, Crehan also cited robust increases in other market segments including general cloud service provider compute, enterprise networking, and storage.

  • The server-class Ethernet NIC market was less than $6 billion in 2023.
  • By 2025, the market had surpassed $13 billion, representing more than a doubling in revenue over the past two years.
  • In the past year alone, 200 gigabit Ethernet (GbE) and 400GbE NIC sales have more than tripled, exceeding half of total market revenues.

The players

Crehan Research Inc.

A market research firm that produces reports with detailed statistics and information on the data center switch and server-class adapter & LOM/controller (NIC) markets, providing rich insights and context to deliver increased value.

Seamus Crehan

The president of Crehan Research Inc.

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What they’re saying

“Following the initial release of ChatGPT, the server-class Ethernet NIC market has seen nearly a vertical straight line trajectory in revenue growth.”

— Seamus Crehan, President, Crehan Research Inc.

“High-speed foundational Ethernet NICs are the connection of choice for connecting GPUs and XPUs in back-end networking, while high-speed Ethernet DPUs/SmartNICs are a common front-end connection.”

— Seamus Crehan, President, Crehan Research Inc.

“Although generative AI has been the main driver of the recent rapid server-class Ethernet revenue growth, other market segments including general cloud service provider compute, enterprise networking and storage have also seen very robust increases.”

— Seamus Crehan, President, Crehan Research Inc.

The takeaway

The surge in server-class Ethernet NIC revenues highlights the critical role these networking components play in powering the rapid advancements in generative AI and cloud computing. As demand for high-speed, low-latency connectivity continues to grow, companies that manufacture and supply these NICs are poised to benefit significantly.