GPUs and accelerators are driving the growth of the data center semiconductor and component market

According to the new Data Center IT Semiconductors and Components Quarterly Report from Dell’Oro Group, the server and storage component market grew 152 percent in the first quarter of 2024. The group ascribes this record-breaking growth to a high demand from hyperscalers for GPUs and custom accelerators.

Baron Fung, senior research director at Dell’Oro Group, said in a press release, “While accelerators continue to set record shipments quarter after quarter, the unit growth of the traditional server and storage component market returned to positive year-over-year growth for the first time in eight quarters as vendors and the Cloud service providers resume purchases in anticipation of higher system demand later this year.”

Fung reported that the average selling price (ASP) of CPUs is increasing due to a move toward fourth- and fifth-generation CPUs. Storage drivers and memory have also seen price increases.

For the quarter, NVIDIA led the market in terms of component revenues, followed by Samsung and Intel.

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