Data centre IT semiconductor and component revenue surges 182%
DRAM and storage drives were the strongest growth drivers, while continued AI infrastructure investment fueled broad-based demand across accelerators and complementary server and storage components.
“Data center component growth accelerated sharply in the second quarter, driven by higher memory and storage prices and continued growth in server demand. NVIDIA’s Blackwell platform and custom accelerators from Google and Amazon continued to gain momentum,” said Baron Fung, Vice President of Research at Dell’Oro Group. “Meanwhile, agentic AI is emerging as a meaningful growth driver for general-purpose servers, broadening component demand beyond accelerated computing. Looking ahead, we expect component revenue growth to maintain momentum through 2026, supported by elevated component prices and strong AI infrastructure investment. Supply constraints, however, may ultimately limit hyperscaler capex plans.”
Additional highlights from the 2Q 2026 Data Center IT Semiconductors and Components Quarterly Report:
DRAM and storage drive revenue grew at a triple-digit pace, as average selling prices per bit more than doubled year-over-year.
Accelerated server deployments drove strong demand for complementary components, including HBM, CPUs, memory, and high-speed back-end NICs.
General-purpose server demand remained strong across cloud service providers, supported by continued infrastructure expansion and emerging agentic AI workloads.
