Server-class Ethernet NIC revenues more than doubled in the past two years, rising from under $6 billion in 2023 to more than $13 billion by 2025, according to new data from Crehan Research. The firm reports that 2025 delivered both record revenues and the highest annual growth rate ever recorded for the segment, reflecting surging demand for networking infrastructure that connects AI compute clusters and hyperscale data centers.
Crehan Research attributes much of the acceleration to generative AI deployments that rely on high-speed Ethernet connectivity for GPU and XPU clusters. Foundational Ethernet NICs typically serve as the primary connectivity layer within back-end AI networks, while Ethernet-based DPUs and SmartNICs increasingly handle front-end networking, offload tasks, and security functions. The widespread adoption of high-performance accelerators and distributed AI architectures is pushing data center operators to deploy faster network interfaces at scale.
The report also highlights the rapid shift toward higher-speed NICs. Sales of 200GbE and 400GbE server adapters more than tripled in the past year alone and now account for over half of total market revenue. Crehan notes that while generative AI remains the primary growth engine, cloud service provider compute, enterprise networking, and storage infrastructure are also contributing to the strong expansion of the server-class Ethernet adapter market.
- Server-class Ethernet NIC revenues increased from under $6 billion in 2023 to over $13 billion in 2025
- 2025 delivered both record revenue and the fastest growth rate ever recorded for the market
- 200GbE and 400GbE NIC sales more than tripled in the past year
- High-speed NICs now represent more than half of total market revenue
- Ethernet NICs connect GPUs and XPUs in back-end AI cluster networking
- Ethernet DPUs and SmartNICs commonly serve as front-end networking interfaces and offload processors
- Additional demand drivers include cloud service provider compute expansion, enterprise networking, and storage infrastructure
“Following the initial release of ChatGPT, the server-class Ethernet NIC market has seen nearly a vertical straight line trajectory in revenue growth,” said Seamus Crehan, president of Crehan Research. “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.”
