Dell’Oro Group Reports 116% 1Q 2026 Growth in Data Center IT Semiconductors and Components Revenue

Dell’Oro Group reports worldwide revenue for Data Center IT Semiconductors and Components rose 116% year over year in 1Q 2026, supported by AI infrastructure expansion and higher memory prices. The figures matter for IT buyers tracking server and storage supply costs tied to DRAM, HBM, and networking components.

Market Overview

The report says worldwide revenue for Data Center IT Semiconductors and Components for servers and storage systems increased 116% year over year in 1Q 2026. Dell’Oro attributes the growth to AI infrastructure expansion and rising memory prices.

It adds that DRAM drove the largest share of revenue growth in both relative and absolute terms in 1Q 2026, while earlier quarters were led by AI accelerators.

Key Findings

“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.

Fung said “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 report also states that AI infrastructure deployments boost demand for adjacent technologies, including HBM, storage, and high-speed networking.

It further says demand for general-purpose servers remains healthy, supported by enterprise refresh cycles, cloud expansion, and workloads such as agentic AI.

Technology and Component Signals

Dell’Oro says the ramp of merchant and custom accelerators drove higher demand for adjacent components including HBM and high-speed back-end NICs. It also links storage demand to AI infrastructure expansion for pre-training and post-training capacity.

On pricing and vendor mix, the report states memory vendors benefited from rising DRAM and NAND prices and growing HBM adoption. It also reports that NVIDIA remained the largest vendor by total revenue, followed by Samsung and SK Hynix.

Forecast or Analyst Outlook

The report says the Data Center IT semiconductor and component segment is on track for triple-digit growth for full-year 2026. It cites elevated DRAM pricing, continued hyperscaler AI investments, and adoption of AI-related infrastructure components as factors expected to sustain strong market momentum throughout the year.

It also notes that cloud service providers deploying custom accelerators, CPUs, and networking silicon gained market share.

Conclusion

The analyst note ties 1Q 2026 revenue growth to AI infrastructure buildouts and higher memory pricing, with DRAM contributing the largest share of growth and downstream demand extending to HBM, storage, and networking components. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.