Dell'Oro says AI back-end switch sales topped front-end sales in Q2 2026

By Atlas Watchline Staff · News · September 3, 2026

Dell'Oro Group said AI back-end network switch sales overtook front-end switch sales in the second quarter of 2026, with Ethernet widening its lead in the market.

Dell'Oro Group said AI back-end network switch sales surpassed front-end network switch sales for the first time in the second quarter of 2026.

The company said the shift affects vendor positioning and market share. It also said supply availability is expected to play a larger role in competition and market growth.

The findings come from Dell'Oro's Data Center Switch – AI Back-end Networks Quarterly Report, cited in a PR Newswire release dated Sept. 3, 2026. The release said the report tracks switches deployed in AI back-end networks and includes manufacturer revenue, ports shipped, average selling prices and revenue splits by region and customer segment.

According to the release, the report covers modular and fixed managed and unmanaged Ethernet switches across speed ranges from less than or equal to 100 Gbps to greater than or equal to 3.2 Tbps. It also breaks out results by customer segment, including the Top 4 US Cloud providers, Top 3 China Cloud providers, AI Model Builders, Neocloud and large enterprises.

Sameh Boujelbene, a vice president at Dell'Oro Group, said AI back-end network spending surpassed the large front-end network market within three years of emergence. He said back-end switch spending growth is outpacing front-end network spending growth and that the market is now larger in absolute terms.

Boujelbene also said the shift has implications for Ethernet switch vendor positioning and market share. He said supply availability will increasingly shape competition and overall market growth.

Dell'Oro said it expects the market to remain supply-constrained rather than demand-constrained for at least the next one-to-two years.

Sources

• PR Newswire release, Sept. 3, 2026

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