“Server and storage system component revenues surged 127% year-over-year in 2Q 2024, reaching a new peak. This growth was propelled by accelerators, such as GPUs and custom accelerators, HBMs, and Ethernet adapters for generative AI applications,” declared Dell’Oro Group senior research director Baron Fung.
“Additionally, memory and storage drive components for non-AI workloads contributed to this growth as prices rose from last year’s low. In anticipation of increased server and storage demand later this year, OEMs and cloud service providers replenished inventories,” Fung added.
Dell’Oro Group’s 2Q 2024 Data Center IT Semiconductors and Components Quarterly Report highlighted the following findings:
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- The Server and Storage Systems Component market is forecast to increase by over 100% in 2024.
- The Server CPU market is also experiencing a recovery, although growth has lagged that of other component categories.
- Nvidia led all vendors in component revenues, followed by Samsung and Intel. Nvidia accounted for nearly half of the reported component revenues.
- Strong growth for accelerators is expected to continue into 2025, as Nvidia’s Blackwell platform ships in volume. Dell’Oro Group anticipates that custom accelerators and other vendors, such as AMD and Intel, will gain some market share in select segments.
- Smart NIC and DPU revenues more than doubled in 2Q 2024, driven by strong deployment of network adapters in AI clusters.
