OMG, It's alive!

A Post-AI-ROI-Panic Overview of the Data Center Processing Market

With all the Q2-24 results delivered, it is time to remove the clouds of euphoria and panic, ignore the performance claims and the bugs, and analyse the Data Center business, including examining the supply chain up and downstream. It is time to find out if the AI boom in semiconductors is still alive.

We begin the analysis with the two main categories, processing and network, and the top 5 semiconductor companies supplying the data centre.

The top 5 Semiconductor companies that supply the data centre account for nearly 100% of networking and processing. Once again, the overall growth for Q2-24 was a healthy 15.3%, all coming from processing. Networking contracted slightly by -2.5%, while processing grew by 20.3%. As Nvidia stated that the company’s decline in networking business was due to shipment adjustments, the growth numbers likely do not represent a major shift in t…