AI Boom Drives 44% YoY Growth in Server and Storage Component Market in Q2 2025, Says Dell’Oro Group

According to a recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the on-going AI expansion cycle drove the server and storage component market to 44 percent year-over-year growth in 2Q 2025. The surging demand for accelerators, HBM, and NICs underpins record expansion across the AI infrastructure stack.

"NVIDIA's Blackwell Ultra GPUs, along with custom accelerators from Google and Amazon, drove the data center IT component market this quarter," said Baron Fung, Senior Research Director at Dell'Oro Group. "This growth also supported higher revenues for HBM memory, back-end NICs, and Grace ARM CPUs for AI workloads. Custom accelerators are now shipping in volumes comparable to commercial GPUs, although their applications differ across AI and cloud workloads. While overall demand for these general-purpose server components such as CPUs, NICs, memory and storage driver remains robust, near-term dynamics such as tariff-driven pull-ins and inventory normalization are affecting revenue patterns."