Disclosed are a PCI switch assembly, having automatic link failover, and a computer system including that switch assembly. The switch assembly comprises first and second interconnected, peripheral component switches. Each of the these switches has first and second primary ports and a plurality of secondary ports. The switch assembly has a normal mode and a failover mode. In the normal mode, each switch routes data through the switch to the secondary ports of the switch. In the failover mode, a failover path is defined and data are routed from the first switch to the second switch and then to one of the secondary ports of the second switch. The second switch detects a predefined fail condition, and changes the switch assembly from the normal mode to the failover mode in response to detecting the predefined fail condition.