Home Technology peripherals AI Dell AI server shipments are expected to increase significantly to more than 30,000 units in 2024

Dell AI server shipments are expected to increase significantly to more than 30,000 units in 2024

Nov 07, 2023 pm 08:37 PM
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Dell AI server shipments are expected to increase significantly to more than 30,000 units in 2024

According to news on November 7, Tianfeng Securities analyst Ming-Chi Kuo posted today that server giant Dell’s AI server shipments in 2023 will be about 10,000 to 15,000 units or less, but it is expected to grow significantly in 2024. to 25,000 to 30,000 units or more; Dell's overall server shipments are expected to benefit from the strong recovery in demand for AI servers and grow significantly by about 15% next year, which will be significantly higher than the industry's average year-on-year growth rate of about 3-5%.

According to the market research briefing released by Ming-Chi Kuo:

1. The latest supply chain survey points out that due to higher-than-expected demand from enterprises for AI servers, Dell has requested a significant expansion of production of AI server components (such as chassis, motherboards, SMT, etc.) that are bottlenecks by about 200%. , to meet the future needs of enterprise customers; and AI server shipments will benefit traditional server demand, so Dell currently expects total server shipments next year to return to annual growth of 15% (this year it will decline by about 10% annually).

2. The key considerations for enterprise customers to build AI servers instead of completely using cloud AI host hosting include ease of management, data security, and customized needs for integration with the enterprise’s existing IT systems.

3. The reasons why Dell was able to obtain better-than-expected AI server orders in the enterprise market include launching PowerEdge servers using Nvidia AI chips ahead of competitors, and cooperating with Meta to support enterprise customers in deploying the Llama 2 AI model.

4. Deployment of AI servers will benefit the demand for traditional servers. The main reason is that traditional servers need to be upgraded to run AI applications, and AI servers will increase the utilization rate of traditional servers.

Due to AI chip supply constraints, Dell’s AI server shipments this year are approximately 10,000 to 15,000 units or less, but it is expected to grow significantly to 25,000 to 30,000 units or more next year. Driven by AI servers, Dell's traditional server shipments will also grow, so Dell currently predicts that total server shipments will resume growth to 15% next year

Editor: Xinzhixun-Linzi

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