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.
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
Hayden Beeson
Hayden Beeson is a writer and editor with over seven years of experience in a variety of industries. Prior to joining Lightwave and Broadband Technology Report, he was the associate editor of Architectural SSL and LEDs Magazine.