Data Center IT Semiconductor & Component Revenue Surged 116% YoY in Q1

Worldwide revenue for Data Center IT Semiconductors and Components surged 116% year-over-year in Q1 2026, driven by rising memory prices, NVIDIA's Blackwell platform ramp, and hyperscaler custom accelerators, according to Dell'Oro Group. DRAM contributed the largest share of revenue growth, while the market is on pace for triple-digit growth across the full year.

Data Center IT Semiconductor & Component Revenue Surged 116% YoY in Q1 Dell’Oro Group reported that worldwide revenue for Data Center IT Semiconductors and Components serving servers and storage systems rose 116% year-over-year in the first quarter of 2026 . The market is now on pace for triple-digit growth across the full year. Q1 Breakdown: Memory Takes the Lead While AI accelerators have driven the majority of growth in recent quarters, DRAM delivered the largest share of revenue growth in both relative and absolute terms during Q1 2026. Key contributors included: - Rising memory prices - Ramp of NVIDIA’s Blackwell platform - Continued deployments of custom accelerators by hyperscalers The expansion of AI infrastructure is also lifting demand for adjacent technologies, including HBM , storage, and high-speed networking. Demand for general-purpose servers remained healthy, supported by enterprise refresh cycles, broader cloud expansion, and emerging AI workloads such as agentic AI. Vendor Landscape NVIDIA remained the largest vendor by total revenue.- It was followed by Samsung and SK Hynix . - Memory vendors benefited significantly from higher DRAM and NAND pricing plus growing HBM adoption. - Cloud service providers deploying their own custom accelerators, CPUs, and networking silicon continued to gain market share. Analyst Commentary “While AI accelerators have been the primary growth driver over the past several quarters, DRAM contributed the largest share of revenue growth in both relative and absolute terms in Q1 2026,” said Baron Fung , Senior Research Director at Dell’Oro Group. “Rising memory prices, alongside the ramp of NVIDIA’s Blackwell platform and continued deployments of custom accelerators from hyperscalers, drove strong demand across the broader component ecosystem. The deployment of AI infrastructure is also boosting demand for adjacent technologies, including HBM, storage, and high-speed networking. At the same time, demand for general-purpose servers remains healthy, supported by enterprise refresh cycles, cloud expansion, and emerging AI workloads such as agentic AI.” Forward Outlook Dell’Oro expects elevated DRAM pricing, sustained hyperscaler AI capex, and increasing adoption of AI-related infrastructure components to keep momentum strong through 2026. Storage demand in particular is benefiting from the capacity needs of both pre-training and post-training AI workloads. The firm tracks revenue, unit/capacity shipments, pricing, and market share for components including CPUs, accelerators GPUs, FPGAs, custom AI ASICs , Ethernet adapters/Smart NICs, HBM/DRAM, and HDDs/NAND/SSDs, segmented by hyperscale cloud and rest-of-market demand. Actions to Take For hyperscalers and large-scale AI infrastructure buyers : The data signals sustained pricing pressure and allocation tightness in memory and HBM through at least the end of 2026. Lock in supply agreements and model higher component costs into 2026–2027 capacity plans. For custom ASIC developers and cloud providers building internal silicon : Continued share gains by hyperscaler custom solutions are confirmed in the data. Accelerate roadmaps and volume commitments where merchant alternatives especially Blackwell ramp face capacity competition. For memory and adjacent component suppliers HBM, high-speed networking, storage : The shift in growth contribution toward DRAM this quarter, combined with the triple-digit full-year outlook, supports aggressive capacity expansion and pricing discipline. Monitor hyperscaler custom accelerator deployments closely as a leading indicator for follow-on HBM and networking demand. For enterprise IT and refresh-cycle planners : General-purpose server demand remains solid alongside AI workloads. Use this window to negotiate enterprise refresh deals before AI-driven component demand further crowds out availability and pricing. For investors and compute allocation strategists : The numbers reinforce that AI infrastructure spend is broadening beyond accelerators into memory, storage, and networking. Position exposure accordingly and track Dell’Oro’s quarterly updates for early signals on whether the triple-digit run rate holds or moderates in coming quarters. The full Dell’Oro Group report on Data Center IT Semiconductors and Components provides ongoing visibility into these shipment, pricing, and market-share trends.