GPU Sales Pull Along ARM CPU, HBM, and Back-End NICS for AI Workloads

REDWOOD CITY, Calif. 

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.”

Additional highlights from the 2Q 2025 Data Center IT Semiconductors and Components Quarterly Report:

• The Server and Storage Systems Component market is forecast to grow by 46 percent in 2025.
• NVIDIA led vendors in Data Center IT component revenues, followed by SK Hynix and Samsung. NVIDIA’s performance reflected the faster-than-expected ramp of Blackwell Ultra. SK Hynix and Samsung recorded growth due to HBM demand and general-purpose server market trends.
• ARM CPUs now hold 25 percent of the Server market, driven by the NVIDIA GB200 and GB300 and hyperscaler custom deployments.
• Smart NIC and DPU revenues doubled year-over-year because of strong deployment of Ethernet adapters in AI clusters.

About the Report

Dell’Oro Group’s Data Center IT Semiconductors and Components Quarterly Report tracks revenue, unit and capacity shipments and unit and capacity pricing, along with market share of major semiconductor and component manufacturers that supplies into the data center server and storage system markets starting from 2018. Technology of focus will be major server and storage semiconductors and components such as CPUs, accelerators such as GPUs, FPGAs, and custom AI ASICs, Ethernet Adapters and Smart NICs, HBM and DRAM, and HDDs and NAND/SSDs. In addition, we will provide a forecast of the demand for these components based on shipments of servers and storage system to the hyperscale cloud service providers and to the rest-of-the-market.