Server sales skyrocketed in Q1 due to GPU demand, with IDC predicting continued growth.
From Yahoo Finance: 2025-07-01 11:23:00
GPU demand led to a 134% year-over-year increase in server sales, totaling $95.2 billion in Q1, the largest quarterly rise in 25 years. IDC predicts the market will surpass $360 billion by 2025, with high-capacity GPU servers dominating the landscape to meet demands for AI processing.
Major cloud providers like AWS, Microsoft, and Google Cloud invested billions in hyperscale infrastructure in Q1, boosting hardware manufacturers. Oracle’s quarterly CapEx more than doubled to $21.2 billion, signaling data center expansion. Enterprise AI hardware orders surged across various industries, with Dell reporting $6.3 billion in server revenue.
Hewlett Packard Enterprise’s server segment revenue increased by 6% year-over-year to $4.1 billion. IDC projects the server market to triple in size over the next three years, reflecting the ongoing demand for AI and data processing capabilities.