Demand for GPUs and accelerators pushed data center semiconductor and component market up 152% in 1Q 2024 – Dell'Oro

General-purpose computing components also returned to growth following inventory correction. #pressrelease

June 25, 2024

1 Min Read

According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the server and storage component market grew 152 percent in 1Q 2024, reaching a new record. This rapid growth is primarily the result of high demand for GPUs and custom accelerators for the hyperscale cloud market. General-purpose server and storage components also experienced double-digit revenue growth following an inventory correction cycle in 2023.

Additional highlights from the 1Q 2024 Data Center IT Semiconductors and Components Quarterly Report:

  • In 1Q 2024, NVIDIA led all vendors in component revenues, followed by Samsung and Intel. NVIDIA accounted for nearly half of the reported component revenues as H100 GPU supplies improved for both the Cloud and Enterprise markets.

  • Strong growth for accelerators is expected to continue into 2024. GPUs will remain the primary choice for training and inference, with NVIDIA's upcoming Blackwell platform strengthening the firm's leadership. We also anticipate that custom accelerators and other vendors will gain some share with competitive offerings such as the AMD MI300X/MI325X Instinct and Intel Gaudi3.

  • Smart NIC and DPU revenues grew more than 50 percent in 1Q 2024, driven by strong hyperscale adoption for both AI and non-AI use cases.

Read the full press release here.

Dell'Oro Group

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