Higher prices can't crimp server sales as AI drives demand

While high memory costs have hurt PC shipments, the server market continues to grow as AI infrastructure spending spreads beyond hyperscalers to corporate and government buyers. According to market intelligence firm IDC, the second quarter was a bumper one for the server sector, with vendor revenue reaching an all-time high of $166.3 billion. That was a 52 percent increase from the same period last year. The picture for servers therefore differs from that for laptops and desktops. There, unit shipments have fallen as buyers are discouraged by higher prices, driven by shortages of memory components. Yet higher prices have helped larger vendors sustain their revenue. In contrast, server shipments increased by 15.4 percent year-on-year in Q2,...

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