In recent years Nvidia has detailed in its reports how revenue is divided between several of its product lines. This allowed it to track sales of its graphics processors to the computer gaming market, the market from which it grew, and also to differentiate between the various products it sells to data centers - between graphics processors for processing AI and communications processors that help graphics processors process data faster. The communications processors are largely based on the acquisition of Israeli company Mellanox in 2019, and many of Nvidia's flagship products, including the best-selling NVLINK network, are managed from Israel.
But the company decided two quarters ago to consolidate sales data for communications processors and graphics processors into a single unit - thus effectively eliminating the possibility of tracking Nvidia's Israeli activities. The intention was first announced in the first quarter of 2026, but the company left the division in its original configuration, so it was possible to get the impression that Mellanox products had become Nvidia's fastest-growing division - with 18% of the company's total revenue and total revenue of almost $15 billion in the quarter - a figure so high that, according to the Central Bureau of Statistics, it even contributed significantly to the growth of Israel's GDP.
Strengthens position as Israel’s most company with most revenue
In the second quarter, as expected, the figure disappeared and was merged with sales data for GPU processors to Nvidia customers, the main and older product line. However, in the investor call, Nvidia CFO Colette Cress revealed the results of the communications processor division's activities anyway, saying that sales grew by 18% from the previous quarter.
This means Nvidia Israel's revenue reached $17.5 billion in the second quarter representing a record rate of 18% of the company's total sales. Cress claimed that the "Spectrum X" communications switch based on the Ethernet protocol grew in annual sales 2.6 times, which contributed to Nvidia becoming the fastest-growing communications company in the world.
The Spectrum X is a system that includes a communications switch and communication cards (NICs) that allow data between graphics processors to move more quickly and efficiently, thus calculating more simultaneous AI operations. In this way, Nvidia Israel strengthens its position as the most profitable Israeli company - compared with Teva's $4.1 billion in the second quarter, and Check Point with $674 million. Israel Aerospace Industries (IAI) which reports every six months, reported revenue of $4.2 billion for the first two quarters of 2026, while Elbit's second quarter revenue was $2.2 billion.
Israel's goods export data published last week by the Central Bureau of Statistics shows that "exports that did not cross the country's borders" - attributed mostly to Nvidia and marginally to other companies such as Camtek and Nova, have stood at about $2 billion every quarter for years. Last year alone, there was a 74% jump compared with 2024 due to Nvidia, when an increase of $7 billion was seen. In the first quarter of this year, it had already jumped to $8 billion.
Without the activity of Nvidia (and Camtek and Nova), the economy would have contracted in the first quarter by 5.8%, a rate almost three times the actual contraction - a GDP decline of 2.2%. Over the course of last year, Israeli GDP grew by 3.5%, but without Nvidia, growth would have amounted to only 2.1%. Economist Prof. Benjamin Bental, a senior advisor to the Aharon Institute, told Globes that compared with the corresponding quarter last year, growth excluding Nvidia stood at 5.5%, compared to 7.2% with the company included, meaning an increase of 1.7 percentage points.
Published by Globes, Israel business news - en.globes.co.il - on August 27, 2026.
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