Israel’s Finance Ministry has revised its 2025 economic growth projections upward, from 1.6% to 2.9%, driven by Nvidia’s Israeli operations. Nvidia’s networking division, developed largely out of Israel through Mellanox (acquired for $6.9 billion in 2020), is projected to generate around $20 billion in revenue in 2025, with estimates exceeding $40 billion in 2026. Nvidia’s Israeli operations employ approximately 6,000 people and contributed roughly $1.28 billion in taxes in the last fiscal year. Macroeconomists have raised concerns that this dependency may overstate Israel’s underlying economic momentum.
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