In a recent report by Dell’Oro Group it was uncovered that worldwide data centre IT semiconductor and component revenue for servers and storage systems surged 182% in Q2 2026. This increase was likely driven by rising memory prices and continued AI infrastructure investment.
DRAM and storage drive revenue grew at a triple-digit pace, as average selling prices per bit more than doubled year-over-year while continued AI infrastructure investment fuelled broad-based demand across accelerators and complementary server and storage components.
“Data centre component growth accelerated sharply in the second quarter, driven by higher memory and storage prices and continued growth in server demand,” stated Baron Fung, VP of research at Dell’Oro.
He also said Nvidia’s Blackwell platform and custom accelerators from Google and Amazon continued to gain momentum.
Fung added agentic AI is emerging as a meaningful growth driver for general-purpose servers, broadening component demand beyond accelerated computing hardware.
Going forward, Fung stated Dell’Oro expects component revenue growth to maintain momentum through the remainder of 2026, supported by elevated component prices and strong AI infrastructure investment, though supply constraints could limit hyperscaler capital expenditure plans.
The report found accelerated server deployments drove strong demand for complementary components, including high-bandwidth memory (HBM), CPUs, memory and high-speed back-end network interface cards.
General-purpose server demand remained strong across cloud service providers, supported by continued infrastructure expansion alongside emerging agentic AI workloads.
Source: Mobile World Live
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Source: Tahawul Tech