TrendForce: AI networking and interconnection revenue will reach $279.8 billion in 2027

TrendForce predicts AI networking and interconnection revenue will reach $279.8 billion in 2027, with a compound annual growth rate of 95% from 2024 to 2027. Switches remain the largest revenue source, expected to contribute 38% ($105 billion) next year. Pluggable optical modules will reach $84.1 billion, while NICs and DPUs will double their revenue in 2027 to $57.4 billion. These three categories combined account for 88%. High-speed interconnection between AI chips via Scale-up is projected to grow the fastest, accounting for 24% of AI networking revenue.