Server Market Booms on AI Demand; Nvidia and Supermicro Big Winners
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Global server revenue grew 12.7% year-over-year in Q4 2022 to $31B as customers buy higher-configured servers for AI workloads
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Preliminary data shows only 2.8-2.9M servers shipped in Q4, down from estimates and the lowest since 2017 as buyers prioritize AI servers
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Nvidia GPUs now account for 44% of server bill of materials on average; Q4 datacenter GPU revenue hit $13.7B
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Nvidia's importance makes it a "kingmaker" - close ties with Nvidia key for server makers wanting to grow market share
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Supermicro grew server market share from 5% to 10% in 2023 selling AI servers, overtaking HPE in Q4