Ethernet Switching Hits New Highs (www.nextplatform.com)

Ethernet switch sales are soaring, with a record $14.7 billion in revenues reported for Q3 2025, marking a significant 35.2% year-on-year increase. This growth is largely driven by high-speed switches (200 Gb/sec, 400 Gb/sec, and 800 Gb/sec), which accounted for $5.43 billion—37% of total Ethernet switching revenues. As AI clusters expand, the industry is increasingly turning to Ethernet, thanks to advancements such as the Ultra Ethernet Consortium's enhancements, which aim to improve features traditionally associated with InfiniBand, such as congestion control and adaptive routing. The shift to Ethernet is particularly crucial for the AI/ML community, as it allows for the creation of large memory domains essential for processing intensive workloads. Datacenter Ethernet switch revenues surged by 62% to $8.73 billion in the same quarter, indicating that nearly 60% of the Ethernet market now comes from datacenters. The rise of original design manufacturers (ODMs) in this space is putting substantial pressure on incumbents like Cisco and Arista, yet there appears to be enough market room for all participants to grow as organizations continue to embrace affordable, high-capacity networking solutions necessary for their AI infrastructure.