Server Market Update: Key Trends

The server industry is being reshaped by AI – from market dynamics to technology roadmaps. Here’s what you need to know right now.

• Global server shipments are forecast to grow at a 5.1% CAGR from 2025 to 2030.

• 2025 saw 15.64 million units shipped, driven by aggressive AI infrastructure spending.

• 2026 growth is expected to slow to 2.7% – mainly because NVIDIA’s next‑gen Vera Rubin platform is a major architectural leap, so volume ramp‑up will be back‑loaded.

• A strong rebound is expected in 2027, with another wave of upgrades when CPO (co‑packaged optics) matures around 2030.

• High‑end AI server shipments reached 1.09 million in 2025 and are projected to hit 1.3 million in 2026.

• AI server revenue is expected to grow another 30%+ in 2026, accounting for 74% of total server market revenue.

• The CPU market is projected to grow from $30B (2025) to $170B (2030).

• AMD vs. Intel (Q1 2026 revenue share): AMD 46.2%, Intel 53.8% – the gap is closing fast.

• ARM is rising: from 15% market share in 2025 to an expected 40–45% by 2030.

• NVIDIA has officially entered the CPU space with its first standalone product, Vera.

• Liquid cooling is now a must‑have for next‑gen data centers – major vendors (Dell, MiTAC) are rolling out liquid‑cooled server solutions.

• HBM memory demand is set to grow over 70% YoY in 2026.

• DDR5 contract prices are expected to rise throughout the year.

• MRDIMM (next‑gen memory) will start volume deployment in late 2026 – 2027.

• PCB and other components have extended lead times, creating potential bottlenecks.

• High‑end AI‑specific CPUs are facing allocation and shortage – a situation that worsened since Q3 2025.

• DRAM and NAND flash prices continue to surge, adding cost pressure.

The server industry is now in the “AI‑defines‑hardware" era. Rapid growth, architectural shifts, and supply‑side volatility are the new normal. Staying informed on these trends is critical for any player in the ecosystem.