Baron Fung

Senior Research Director

Dell’Oro Group’s Data Center IT Semiconductors and Components report track the global market for key components used in data center servers and storage systems, including CPUs, accelerators, memory, storage, and network interface cards (NICs). The reports provide detailed analysis of revenue, unit and capacity shipments, pricing, and vendor market share, offering visibility into component supply, demand, and their relationship to system deployments.

The Data Center IT market is on track to exceed $1 trillion in 2026, with servers and storage systems driving the majority of spending. While system hardware is becoming increasingly commoditized, differentiation is shifting toward semiconductors and components, including accelerators, CPUs, memory, storage, and networking interfaces.

The report focuses on how demand for these components is evolving alongside AI workloads, hyperscale cloud deployments, and supply chain dynamics, as well as how component shipments align with server and storage system deployments across cloud service providers and the broader market.

Semiconductors and components are now the primary drivers of innovation, cost structure, and performance in data center infrastructure. Growth in AI workloads is accelerating demand for accelerators, HBM memory, and Smart NICs, while the increasing adoption of custom silicon and alternative architectures, including ARM-based CPUs, is reshaping the competitive landscape. At the same time, supply chain dynamics and component pricing are influencing system deployment timing and costs, as hyperscale cloud providers drive demand through large-scale deployments and custom designs. Dell’Oro Group projects revenue for key server and storage components to grow at a 25% CAGR, approaching $1 trillion over the next five years, underscoring the strategic importance of this market.

With this report, you will be able to answer critical business questions, including:

  • What is the demand outlook for GPUs and XPUs, and how are adjacent technologies—such as HBM, high-capacity storage, and NICs—reshaping overall data center spending?
  • How is the market balance shifting between merchant silicon and the rise of custom, in-house accelerators developed by hyperscale cloud providers?
  • How do current semiconductor shipment trends align with actual system deployments, and what are the prevailing trends in component inventory levels and pricing?
  • What is the distinct demand outlook for semiconductors and components across Cloud Hyperscalers versus Tier 2 service providers and enterprise customers?
  • How do major server GPU, XPU, and CPU platform refreshes impact pricing trends and total system Bill of Materials (BOM) costs and the overall component mix?

Technology & Competitive Landscape

The report examines key developments across the semiconductor ecosystem:

  • The expansion of the AI accelerator market, led by NVIDIA alongside intensifying competition from emerging merchant vendors and custom silicon designs.
  • Shifting CPU market dynamics, including the competition between Intel, AMD, and ARM-based alternatives, and the new demand for CPUs to manage agentic AI workloads.
  • The accelerated adoption of bespoke, in-house silicon by hyperscale cloud providers to optimize specific workloads.
  • The transformative impact of AI scaling on the demand, performance requirements, and pricing of the memory and storage markets.

Data Center IT Semiconductors & Components Quarterly Reports

Dell’Oro Group’s Data Center IT Semiconductor and Component quarterly report tracks revenue, unit and capacity shipments and unit and capacity pricing, along with market share of major semiconductor and component manufacturers that supplies into the data center server and storage system markets starting from 2018.

Technology Coverage

    • Accelerators (GPUs, XPUs, FPGAs
    • Central Processing Units (CPUs)
    • Memory (DRAM, HBM)
    • Ethernet and InfiniBand NICs and Smart NICs
    • Hard Disk Drives (HDDs)
    • Solid State Drives (SSDs) and NAND

Demand Analysis

    • Component demand tied to server and storage deployments
    • Shipments to Top 10 cloud service providers and broader market
    • Cloud service providers covered include: Alibaba, Amazon, Baidu, ByteDance, Google, IBM, Meta, Microsoft, Oracle, Tencent plus emerging AI model developers.

Data Center IT Semiconductors & Components 5-Year Forecasts

Dell’Oro Group publishes the Data Center IT Semiconductors and Components 5-year forecast reports offering a complete overview of the market with historical data from 2018 to the present. The forecasts provide a comprehensive overview of market and technology trends and include tables covering the same technology areas as the quarterly report:

    • Accelerators (GPUs, XPUs, FPGAs)
    • Central Processing Units (CPUs)
    • Memory (DRAM, HBM)
    • Ethernet and InfiniBand NICs and Smart NICs
    • Hard Disk Drives (HDDs)
    • Solid State Drives (SSDs) and NAND

We provide our long-term forecast of key metrics such as revenue, unit and capacity shipments, and price per unit or capacity, for the associated technology areas. In addition, we provide our assessment of the adoption of new technologies that could be disruptive to server and storage system architectures and ecosystem.

Click here to contact us to learn more about the Data Center IT Semiconductors and Components research program and available purchasing options.