Server and storage component revenues reached $244 billion in 2024, according to a report by Dell'Oro Group, driven by demand for GPUs, custom accelerators, and storage tailored for artificial intelligence (AI) workloads. The report notes a rebound in memory and storage for general-purpose servers as prices improved.

“While NVIDIA GPU systems, primarily featuring the Hopper platform, and Blackwell in late 2024 were the primary drivers of growth, a broader range of accelerated systems has also emerged,” said Baron Fung, Senior Research Director at Dell'Oro Group. “AMD has steadily gained traction with major cloud service providers, particularly with its Instinct platform. Additionally, the Top 4 U.S. cloud service providers—Google, Amazon, and Microsoft—dramatically increased their adoption of accelerated servers equipped with custom accelerators optimized for AI training and inference in 2024. Continued investments in AI infrastructure are expected to sustain demand for critical components in 2025.”

Other report highlights include:

• The Server and Storage Systems Component market is expected to maintain over 40 percent growth in 2025.
• NVIDIA dominated data center component market revenues in 2024, capturing nearly half of total reported revenues, while Samsung and SK Hynix followed.
• Smart NIC and data processing unit (DPU) revenues increased by 77 percent due to strong deployment of Ethernet adapters in AI clusters.
• The CPU market is projected to grow by 45 percent in 2025.