Data Center IT Semiconductor and Component Revenue Increased 116 Percent in 1Q 2026, According to Dell'Oro Group - Morningstar

According to a recent report by Dell'Oro Group, worldwide revenue for Data Center IT Semiconductors and Components surged 116% year-over-year in Q1 2026, driven primarily by AI infrastructure expansio... Read original →

The AI infrastructure boom is triggering a cascading redesign across the semiconductor stack: the bandwidth race between HBM and DDR5 is accelerating, forcing Samsung and SK Hynix to shift over 40% of DRAM capacity to HBM3e/4, indirectly inflating general-purpose server memory prices. NVIDIA’s Blackwell platform—exceeding 1,000W—compels upgrades in power management ICs, liquid cooling interfaces, and high-speed SerDes. Geopolitically, U.S. export controls on advanced packaging tools have raised HBM supply chain costs by 15–20%, compelling foundries in Taiwan, China and Korea to adopt dual-sourcing strategies. In response to NVIDIA’s dominance, AMD and Intel are leveraging chiplet architectures and open software stacks to capture custom ASIC share, while hyperscalers deploy in-house TPUs/ NPUs to reduce GPU dependency. Over the next 18 months, persistent HBM shortages will sustain memory vendors’ pricing power—yet mass adoption of CPO (co-packaged optics) or near-memory computing by 2027 could upend today’s 'memory wall'-driven value distribution.