According to a recently published report by Dell’Oro Group, a source for market information about the telecommunications, security, networks and data centre industries, the worldwide revenue for data centre IT semiconductors and components for servers and storage systems increased 116% year-over-year in 1Q 2026, propelled by ongoing AI Infrastructure expansion and rising memory prices.
“While AI accelerators have been the primary growth driver over the past several quarters, DRAM contributed the largest share of revenue growth in both relative and absolute terms in 1Q 2026,” said Baron Fung, senior research director at Dell’Oro Group. “Rising memory prices, alongside the ramp of NVIDIA’s Blackwell platform and continued deployments of custom accelerators from hyperscalers, drove strong demand across the broader component ecosystem. The deployment of AI infrastructure is also boosting demand for adjacent technologies, including HBM, storage, and high-speed networking. At the same time, demand for general-purpose servers remains healthy, supported by enterprise refresh cycles, cloud expansion, and emerging AI workloads such as agentic AI.”
Additional highlights from the 1Q 2026 data centre IT semiconductors and components quarterly report:
- The data centre IT semiconductor and component is on track for triple-digit growth for full-year 2026. Elevated DRAM pricing, continued hyperscaler AI investments, and growing adoption of AI-related infrastructure components are expected to sustain strong market momentum throughout the year.
- The ramp of merchant and custom accelerators drove higher demand for adjacent components including HBM and high-speed back-end NICs. Storage demand also benefited from the rapid expansion of AI infrastructure, which requires significant capacity for both pre-training and post-training workloads.
- NVIDIA remained the largest vendor by total revenue, followed by Samsung and SK Hynix. Memory vendors benefited from rising DRAM and NAND prices and growing HBM adoption, while cloud service providers deploying custom accelerators, CPUs and networking silicon gained market share.
Dell’Oro Group’s Data Centre IT Semiconductors and Components Quarterly Report tracks revenue, unit and capacity shipments and unit and capacity pricing, along with market share of major semiconductor and component manufacturers that supplies into the data centre server and storage system markets starting from 2018. Technology of focus will be major server and storage semiconductors and components such as CPUs, accelerators such as GPUs, FPGAs, and custom AI ASICs, Ethernet Adapters and Smart NICs, HBM and DRAM, and HDDs and NAND/SSDs. In addition, we will provide a forecast of the demand for these components based on shipments of servers and storage system to the hyperscale cloud service providers and to the rest-of-the-market.
