Worldwide data center IT semiconductor and component revenue surged 116 percent year-over-year in the first quarter of 2

According to a report published by Dell'Oro Group, the market research firm specializing in telecommunications, security, networks, and data center industries, the data center IT semiconductors and components market for servers and storage systems experienced substantial growth in the first quarter of 2026. While AI accelerators have been the primary growth driver in recent quarters, DRAM memory chips contributed the largest share of revenue growth in both relative and absolute terms during this period.

Baron Fung, Senior Research Director at Dell'Oro Group, explained that rising memory prices combined with the ramp of NVIDIA's Blackwell platform and continued deployments of custom accelerators from hyperscale cloud providers drove strong demand across the broader component ecosystem. The expansion of AI infrastructure is also boosting demand for adjacent technologies including high-bandwidth memory, storage solutions, and high-speed networking equipment. Beyond AI-focused infrastructure, demand for general-purpose servers remains healthy, supported by enterprise refresh cycles, cloud expansion, and emerging workloads such as agentic AI applications.

Dell'Oro Group's Data Center IT Semiconductors and Components Quarterly Report tracks revenue, unit shipments, capacity shipments, pricing metrics, and market share of major semiconductor and component manufacturers supplying the data center server and storage markets since 2018. The report focuses on major server and storage semiconductors and components including CPUs, accelerators such as GPUs and FPGAs, custom AI ASICs, Ethernet adapters, smart network interface cards, high-bandwidth memory, DRAM, hard disk drives, and NAND and SSD storage. The report also provides demand forecasts for these components based on shipments to hyperscale cloud service providers and the broader market.