Server sales surged in Q1, driven by GPU demand

The market more than doubled during the first three months of the year, marking the highest quarterly growth rate in 25 years.

Dive Brief:

• GPU demand drove a record spike in server sales during the first three months of the year, according to IDC research published Thursday. The market shot up 134% year over year to $95.2 billion in Q1, marking the largest quarterly increase the analyst firm has recorded in 25 years.
• IDC expects the market to surge past $360 billion in 2025, which would indicate 45% growth compared with last year. As AI adoption ramped up in 2024, server sales increased 73.5% to $244 billion dollars, according to the firm’s March market analysis.
• High-capacity GPU servers will make up roughly half the total market this year, according to IDC. “The evolution from simple chatbots to reasoning models to agentic AI will require several orders of ...