The figure for Nvidia Israel disappeared from the reports and then reappeared in the investor call
Although Nvidia stopped separately disclosing the revenues of its Israeli communications division, data revealed in the investor call point to sales of about $17.5 billion in the second quarter. The activity, based on Mellanox technologies, continues to account for about 18% of the company's revenues and contribute significantly to the growth of the Israeli economy.
In recent years, Nvidia used to detail in its reports how revenues are divided between several of its product lines. Thus, it was possible to track the sales of its graphics processors for the computer gaming market, as well as distinguish between the various products it sells for server farms — graphics processors for artificial intelligence processing and communications processors that help the graphics processors process information faster. The communications processors are largely based on the acquisition of the Israeli company Mellanox in 2019, and many of Nvidia's flagship products, including the NVLINK network, are managed from Israel.
Two quarters ago, the company decided to consolidate the sales data of communications processors and graphics processors into one unit, effectively eliminating the possibility of tracking Nvidia's Israeli activity. In the first quarter of the year, the company initially left the division in its original form, allowing observers to conclude that Mellanox products had become Nvidia's fastest-growing division, accounting for 18% of the company's total revenue (nearly $15 billion per quarter). This figure was so high that, according to the Central Bureau of Statistics, it contributed to the growth of the Israeli GDP.
Strengthening its position as the most profitable Israeli company
In the second quarter, the figure was consolidated with the sales data of GPU processors. Nevertheless, in the investor call, the CFO revealed the results of the communications processor division, stating that sales grew by 18% compared to the previous quarter. It appears that Nvidia Israel's sales reached $17.5 billion in the second quarter, maintaining a record 18% share of the company's total sales. The CFO claimed that the Spectrum-X communications switch based on the Ethernet protocol grew in its annual sales by 2.6 times. Spectrum-X is a system that includes a communications switch and network cards (NIC) that allow information between graphics processors to move faster and more efficiently.
Nvidia Israel is strengthening its position as the most profitable Israeli company. For comparison, Teva brought in $4.1 billion in the second quarter, and Check Point $674 million. Israel Aerospace Industries reported revenues of $4.2 billion for the first two quarters of 2026, while Elbit's revenues in the second quarter reached $2.2 billion.
According to data on Israel's goods exports published by the Central Bureau of Statistics, "exports that did not pass through the country's borders" — which is mostly attributed to Nvidia — stood for years at about $2 billion each quarter. Last year alone, there was a jump of 74% compared to 2024, and in the first quarter of the current year, it jumped to $8 billion.
Without the activity of Nvidia, the economy would have contracted in the first quarter by 5.8%, a rate almost three times higher than the actual GDP decline of 2.2%. Over the last year, the Israeli GDP grew by 3.5%, but without Nvidia, the growth would have amounted to only 2.1%. Economist Prof. Benjamin Bental, a senior advisor to the Aaron Institute, told Globes that compared to the same quarter last year, growth without weighting Nvidia stands at 5.5%, compared to 7.2% with the company included, meaning an addition of 1.7 percentage points.
