Following the introduction of ChatGPT in 2022, the server market has grown rapidly driven by the increasing demand for AI servers to cater to the GenAI boom. As a result, global server revenues reached $45,422 million in Q2 2024, up 35% from last year. AI servers accounted for almost 30% of the overall server market in Q2 2024, compared to just about 17% in Q1 2023, according to Counterpoint Research’s latest ‘Global AI Server Market’ report.

Source: Counterpoint Research

The biggest provider of AI servers is “ODM direct”, which means servers manufactured by ODMs for cloud providers. This segment accounted for 44% of the AI server market in Q2 2024. Such servers are mostly commissioned and manufactured for the four major tech companies – Microsoft, Amazon, Google and Meta.

Source: Counterpoint Research

Note: Numbers may not add to 100% due to rounding

However, the proportion of “ODM direct” is gradually decreasing compared to 2023, while the revenues of OEM companies are increasing significantly. Many companies, such as small and medium cloud service providers and internet service providers, are purchasing solutions instead of opting for custom or in-house production.

AI server manufacturer trends in Q2 2024

• Supermicro Computer is among NVIDIA’s key partners. The company has seen a rapid increase in its sales after entering the AI server market in 2022. It is now focusing on AI servers to the point that the AI GPU platform accounts for 70% of its revenue and is currently leading the AI server market. But Dell is hot on its trail.
• Dell is rapidly increasing its share in the AI server market, which was up 82% QoQ in Q2 2024. We expect Dell to take the top position in the AI server market among OEMs in 2025. The “ODM direct” share will continue to be the biggest.
• HPE also showed a QoQ growth of 44% in its revenue from the AI server market in Q2 2024. With demand exceeding supply, growth is expected to maintain momentum in the next quarter.

The AI server market is expected to continue to see growth and expansion in the coming quarters due to the expansion of digital infrastructure in various fields, such as sovereign AI investments.

For more details, refer to the ‘Global AI Server Market, Q2 2024 ’ report, which tracks the market’s growth and analyses key players’ activities and performance. The report is available for subscribing clients.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.