Dell’Oro Group reports 40% rise in data center component revenue

Dell’Oro Group reports global data center server and storage component revenue rose 40% year‑over‑year in 3Q 2025, driven mainly by Artificial Intelligence (AI) accelerators and related components, affecting procurement and capacity planning for enterprise IT leaders.

Market Overview

Global data center server and storage component revenue increased 40 percent year‑over‑year in 3Q 2025, led by demand for AI accelerators. That demand lifted shipments and pricing for complementary components including High Bandwidth Memory (HBM), back‑end NICs, and storage drives.

Key Findings

“Growth in the quarter was led by NVIDIA’s Blackwell Ultra ramp across US hyperscalers and neo cloud providers,” said Baron Fung, Senior Research Director at Dell’Oro Group. Deployments of custom accelerators from hyperscale customers such as Google and Amazon also surged, driven by training and inference requirements for foundational models, and large cloud agreements with customers including Anthropic and Meta. General-purpose server and storage demand from hyperscalers supported shipments of CPUs, NICs, and storage drives as they added cloud capacity for AI infrastructure.

“While the server refresh cycle provided upside in prior quarters, we believe this refresh cycle is now winding down,” said Fung.

Segment or Supplier Performance

NVIDIA led vendors in data center IT component revenues, followed by SK Hynix and Samsung, reflecting the strong Blackwell Ultra ramp. SK Hynix and Samsung recorded growth due to HBM demand and rising DRAM and Solid-State Drive (SSD) prices.

Technology or Trend Analysis

High-end accelerators will remain the largest contributor to revenue growth in 2026, supported by NVIDIA’s Vera Rubin launch and AMD’s MI400 rack-scale platforms. Dell’Oro Group also cites next‑generation custom accelerators from Google and Amazon as contributors to component demand.

Forecast or Analyst Outlook

The Server and Storage Systems Component market is forecast to grow by 48 percent in 2025. The firm notes enterprise demand remains uneven as the server refresh cycle winds down.

Dell’Oro Group’s note emphasizes AI accelerator deployments and memory and storage price dynamics as primary drivers for 3Q 2025 component revenue and supplier positioning. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.