Accelerators led all server semiconductors and components with triple-digit year-over-year growth in 2Q 2023, according to a recent report from Dell’Oro Group. While Intel still maintains a majority share of the server CPU market, AMD’s revenue share now exceeds 20 percent. ARM is also poised to gain share with new cloud server deployments in 2023.
“NVIDIA has benefited from the surge in demand for accelerated computing for generative AI applications, and has displaced Intel as the largest server component manufacturer since the beginning of this year,” said Baron Fung, Sr. Research Director at Dell’Oro Group. “Meanwhile, over the past four quarters, the rest of the server semiconductor and component market has witnessed a contraction, as system vendors and hyperscale cloud service providers reduce component inventory levels and pause purchases in response to a slowdown in general-purpose computing deployments. We project a recovery in the component market starting in the second half of 2023, as system vendors and hyperscale cloud service providers resume component purchases in anticipation of the next investment cycle in 2024. Accelerators will continue to drive long-term growth, and new server platforms with 5th-generation CPUs will lead to an upside in IT spending,” explained Fung.
Additional highlights from the new 2Q 2023 Data Center IT Semiconductors and Components Quarterly Report:
- Server and storage systems component market is forecast to grow 1 percent in 2023.
- NVIDIA led all vendors in server component revenue in 2Q 2023, followed by Intel, Samsung, and Western Digital.
- GPU shipments are projected for 59 percent growth in 2023 mainly from NVIDIA H100 deployments. Higher volumes for AMD and Intel GPU-based systems are expected later this year.
Dell’Oro Group’s Data Center IT Semiconductors and Components Quarterly Report tracks revenue, unit and capacity shipments, unit and capacity pricing, and market share of major semiconductor and component manufacturers supplying the data center server and storage system markets since 2018. The report focuses on significant server and storage semiconductors and components, including CPUs; accelerators such as GPUs, FPGAs, and custom AI ASICs; memory; Ethernet and InfiniBand NICs and Smart NICs/DPUs; HDDs and NAND/SSDs.
