Higher component costs and strong AI infrastructure demand combined to drive growth, according to Dell’Oro Group.
REDWOOD CITY, Calif.—Worldwide revenue for data center IT semiconductors and components used in servers and storage systems surged 182 percent in the second quarter of 2026, according to a report published recently by market research firm Dell’Oro Group.
In a release announcing its report, the company stated that DRAM and storage drives were the strongest growth drivers. Continued AI infrastructure investment fueled broad-based demand across accelerators and complementary server and storage components.
Dell’Oro Group specializes in strategic competitive analysis of the telecommunications, security, enterprise networks infrastructure, and data center markets. Its team provides in-depth quantitative data and qualitative analysis to facilitate “critical, fact-based business decisions,” the company said in the release.
“Data center component growth accelerated sharply in the second quarter, driven by higher memory and storage prices and continued growth in server demand,” said Baron Fung, vice president of research at Dell’Oro Group, in the release. “NVIDIA’s Blackwell platform and custom accelerators from Google and Amazon continued to gain momentum. Meanwhile, agentic AI is emerging as a meaningful growth driver for general-purpose servers, broadening component demand beyond accelerated computing.
“Looking ahead, we expect component revenue growth to maintain momentum through 2026, supported by elevated component prices and strong AI infrastructure investment,” Fung continued. “Supply constraints, however, may ultimately limit hyperscaler capex plans.”