Server and storage component revenues reached a record $244 billion in 2024, driven by the growing demand for AI, according to a recent report by Dell’Oro Group.
The surge in revenue was primarily fueled by the increased need for GPUs, custom accelerators, high-bandwidth memory (HBM), and storage solutions designed specifically for AI workloads. Additionally, demand for memory and storage in the general server market rebounded strongly, with better pricing throughout the year.
“While NVIDIA GPU systems, particularly the Hopper platform, and Blackwell in late 2024, were key drivers of growth, a wider range of accelerated systems has also emerged,” said Baron Fung, Senior Research Director at Dell’Oro Group. “AMD has also gained traction with major cloud providers, especially with its Instinct platform.”
The top four U.S. cloud service providers—Google, Amazon, Microsoft, and Meta—significantly increased their use of accelerated servers with custom accelerators optimized for AI training and inference in 2024.
Looking ahead to 2025, continued investments in AI infrastructure are expected to drive sustained demand for essential components. GPUs, custom accelerators, HBM, high-capacity SSDs, and network interface cards (NICs) for back-end networks are all expected to see strong double-digit revenue growth.
Dell’Oro Group’s Data Center IT Semiconductors and Components Quarterly Report tracks revenue, unit shipments, capacity shipments, pricing, and market share for major semiconductor and component manufacturers in the server and storage system markets since 2018. The report focuses on components like CPUs, GPUs, FPGAs, custom AI ASICs, Ethernet and InfiniBand NICs, HDDs, and SSDs, and forecasts future demand based on server and storage shipments to hyperscale cloud providers and other market segments.
