“The worldwide Data Center IT Semiconductor and Component market is projected to grow at a 26 percent compound annual growth rate (CAGR) over the next five years, fueled by the continued expansion of AI workloads and the buildout of specialized infrastructure,” said Baron Fung, Senior Research Director at Dell’Oro Group. “AI accelerators, including both merchant GPUs and custom silicon, are at the heart of this growth cycle, enabling a wide range of AI and domain specific applications.

“We’ve raised our forecast for data center infrastructure spending, driven by the rapid adoption of AI. GPUs and custom AI accelerators now account for roughly one third of total data center capex, making them the single largest driver of growth ,” said Baron Fung, Senior Research Director at Dell’Oro Group.