Campus Ethernet switch vendors posted their second consecutive quarter of double-digit revenue growth in the first quarter of 2026, benefiting from a combination of rising shipment volumes and higher average selling prices, according to new data from the Dell’Oro Group. The market research firm said escalating component costs linked to the AI infrastructure boom are driving price increases across the campus networking sector, creating favorable conditions for equipment suppliers despite an intensely competitive market.
According to Siân Morgan, Research Director at Dell’Oro Group, growing demand for AI infrastructure is straining key component supply chains, particularly memory. The firm expects campus switch pricing to continue increasing throughout 2026 as shortages of DDR4 memory and other components persist. At the same time, enterprise refresh cycles remain active, supporting healthy shipment growth across most vendors. Dell’Oro noted that market share positions remained relatively stable as nearly all major suppliers participated in the expansion.
The report also highlights a growing security-driven refresh opportunity. Morgan pointed to increased industry attention around Anthropic’s April disclosure regarding “Mythos,” an AI model that reportedly identified thousands of previously unknown software vulnerabilities. Cisco has cited the development as evidence that enterprises should replace unsupported networking equipment that may be exposed to newly discovered security risks. Dell’Oro believes concerns about legacy infrastructure security could accelerate campus switching upgrades in coming quarters.
• Campus Ethernet switch revenue recorded double-digit year-over-year growth for the second consecutive quarter.
• Higher equipment prices and increased shipment volumes contributed to revenue expansion.
• Multi-gigabit Ethernet port shipments continued to rise as organizations deploy Wi-Fi 7 networks.
• Dell’Oro expects DDR4 memory shortages to affect networking equipment supply chains through 2027.
• North America delivered the strongest regional revenue growth during the quarter.
• Modular campus switch platforms experienced unusually strong demand compared with recent market trends.
“Anthropic’s April blog post revealing that Mythos, an AI model, identified thousands of previously unknown security vulnerabilities, has appeared as a central focus for Cisco’s campus switch refresh strategy. A Pandora’s Box of vulnerabilities leaves enterprises with unsupported equipment at risk,” said Siân Morgan, Research Director at Dell’Oro Group.
🌐 Analysis: The report underscores how AI infrastructure investments are influencing markets beyond GPUs and data center fabrics. Memory, power, and component supply constraints associated with AI server deployments are increasingly affecting enterprise networking hardware, creating upward pricing pressure across campus infrastructure. Similar trends have appeared in adjacent networking segments, including routers, optical transport equipment, and wireless infrastructure.
