AI infrastructure boom raises Q2 GPU and accelerator revenue to $54B
Primarily driven by high demand for GPUs and custom accelerators in the hyperscale cloud market, sales of GPUs and accelerators reached a record $54 billion in 2Q 2024.
A new Dell’Oro report revealed that more growth is coming in the sector.
The research firm forecasts an uptick in the server and storage systems component and server CPU markets.
The server and Storage Systems Component market is forecast to increase by over 100 percent in 2024, while the server CPU market is also experiencing a recovery, although growth has lagged that of other component categories.
Meanwhile, smart NIC and DPU revenues more than doubled in 2Q 2024, driven by strong deployment of network adapters in AI clusters.
Unsurprisingly, NVIDIA led all vendors in component revenues, followed by Samsung and Intel. NVIDIA accounted for nearly half of the reported component revenues.
Accelerators' strong growth will continue into 2025 as NVIDIA’s Blackwell platform ships in volume. We also anticipate that custom accelerators and other vendors, such as AMD and Intel, will gain some market share in select segments.
“Server and storage system component revenues surged 127 percent 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,” said Baron Fung, senior research director at Dell’Oro Group. “Additionally, memory and storage drive components for non-AI workloads contributed to this growth as prices rose from last year’s low.”
Fung added, “In anticipation of increased server and storage demand later this year, OEMs and cloud service providers replenished inventories."
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About the Author
Sean BuckleySean Buckley
Sean is the Editor-in-Chief of Lightwave. He establishes and executes Lightwave's editorial strategy across its website, email newsletters, events, and other information products. Before coming to Lightwave in July 2023, he served as editor of Broadband Communities. Earlier, he served as senior editor of FierceTelecom and the editor of the former Telecommunications Magazine. He got his start in the optical industry in 1998 when he became the editor of enterprise and optical networks at Information Gatekeepers. He has a BA in English from the University of Massachusetts, Boston, and lives in Dracut, Mass, with his wife, two sons, and his cat, Dove.
