According to a report published by Dell'Oro Group on June 17, 2026, the data center IT semiconductors and components market for servers and storage systems experienced significant growth in the first quarter of 2026. The 116 percent year-over-year revenue increase reflects multiple converging trends across the industry.

While AI accelerators have been the primary growth driver over recent quarters, DRAM contributed the largest share of revenue growth in both relative and absolute terms in the first quarter of 2026, according to Baron Fung, Senior Research Director at Dell'Oro Group. Rising memory prices, combined with the ramp of NVIDIA's Blackwell platform and continued deployments of custom accelerators from hyperscalers, drove strong demand across the broader component ecosystem.

Beyond semiconductors, the deployment of AI infrastructure is boosting demand for adjacent technologies including HBM, storage, and high-speed networking. Simultaneously, demand for general-purpose servers remains healthy, supported by enterprise refresh cycles, cloud expansion, and emerging AI workloads such as agentic AI.

Dell'Oro Group's quarterly report tracks revenue, unit and capacity shipments, unit and capacity pricing, and market share of major semiconductor and component manufacturers supplying the data center server and storage system markets. The analysis focuses on major server and storage semiconductors and components including CPUs, accelerators such as GPUs and FPGAs, custom AI ASICs, Ethernet adapters and smart NICs, HBM and DRAM, and HDDs and NAND SSDs, along with forecasts of demand from hyperscale cloud service providers and the broader market.