Server Ethernet NIC Revenue Jumps 40%, Nears $5B Run-Rate
San Francisco – October 31, 2026 -- Merchant-built server-class Ethernet NIC revenue rose 40% year-over-year in calendar Q2 2024, reaching an annualized run-rate close to $5 billion, according to Crehan Research. The figures cover adapters, controllers and LOMs.
SmartNICs grow over 50% while mainstream NICs gain over 30%
Foundational/Performance Ethernet NIC revenue increased more than 30% year-over-year. DPU/IPU Ethernet SmartNIC revenue grew more than 50%. Crehan attributes the growth largely to numerous concurrent Ethernet speed and technology upgrades.
Crehan Research President Seamus Crehan said the market now supports almost three times as many Ethernet speeds as a decade ago, when there were three.