Dell’Oro: 2Q23 Generative AI Drives Accelerator Market to Achieve Triple Digit Growth

According to the newly released Data Center IT Semiconductors and Components Report by Dell’Oro Group, in the second quarter of 2023 (2Q23), Accelerators led the server semiconductor and component market to achieve triple digit year-on-year growth. Although Intel still maintains a significant share of the server CPU market, AMD’s revenue share now exceeds 20%. ARM is also preparing to deploy new cloud servers in 2023 to gain market share.

Baron Fung, Senior Research Director of Dell’Oro Group, stated, “NVIDIA benefits from the application of Generative AI for accelerated computing Demand has surged and replaced Intel as the largest server component manufacturer since the beginning of this year. Meanwhile, in the past four quarters, other parts of the server semiconductor and component market have shrunk due to system suppliers and ultra large cloud service providers reducing component inventory levels and suspending procurement to cope with the slowdown in general computing deployment.”
Fung also explained, “We expect the component market to recover from the second half of 2023, as system suppliers and ultra large-scale cloud service providers resume component procurement, and 2024 is expected to enter the next investment cycle. Accelerators will continue to drive long-term growth, and new server platforms equipped with fifth generation CPUs will bring about an increase in IT spending.”