According to TrendForce, server demand is expected to grow from the second to the third quarter, with Enterprise OEMs driving the most significant increase. Dell, HPE, and Lenovo are among the companies benefiting.
According to TrendForce, server demand is expected to grow from the second to the third quarter, with Enterprise OEMs driving the most significant increase. In addition to the strong demand for AI servers, recent tender projects and the demand for storage servers driven by AI have boosted second-quarter shipments, and the momentum will continue into the third quarter, with an estimated increase of about 4-5%.
Although the overall environment this year has been impacted by AI budgets, resulting in less-than-expected growth in general servers for the whole year, recent related components such as the Board Management Controller (BMC) and new CPUs have provided good purchasing power for OEMs and CSPs due to the introduction of new server platforms. In addition, investigation into the ODM supply chain also revealed a seasonal growth trend in the second and third quarters of server shipments, except for a slowdown in the first quarter. From the supply chain perspective, OEMs and CSPs are also more proactive in preparing for CPUs. AMD Bergamo and Genoa are also benefiting from the increasing cloud computing power. With mass production imminent for GB200 and mid-range manufacturers, BMC is expected to benefit, and orders are expected to increase in the second and third quarters. TrendForce expects DRAM bit shipments to exceed previous expectations, with DDR5 accounting for 60% of shipments in the third quarter.
In terms of Chinese enterprises, telecom bidding projects will be launched this month, pushing up demand for orders from related companies such as IEIT and xFusion. In addition, ByteDance will increase server purchases for the year due to new business needs, while Alibaba and Tencent have increased their server orders for the year due to the machine replacement cycle. TrendForce believes that the current demand needs to be sustained to support server growth, but the purchasing power of components seems to show that the previous exclusion effect of general servers by AI servers is gradually fading.
According to TrendForce, server demand is expected to grow from the second to the third quarter, with Enterprise OEMs driving the most significant increase. In China, telecom bidding projects will be launched this month, pushing up demand for orders from related companies such as IEIT and xFusion. In addition, ByteDance will increase server purchases for the year due to new business needs, while Alibaba and Tencent have increased their server orders for the year due to the machine replacement cycle.
TrendForce believes that the sustainability of current demand needs to be observed to continue supporting server growth, but the purchasing power of components seems to show that the previous exclusion effect of general servers by AI servers is gradually fading.