Summary of Datacenter Market Insights – Overall Servers Industry Overview - The report focuses on the **datacenter market**, specifically the **server segment** within the **Asia Pacific** region, highlighting trends and insights for the third quarter of 2025 (3Q25) [1][8]. Key Insights - **Total Server Shipments**: There was a **14% year-over-year (y/y)** growth in total server shipments in 3Q25, primarily driven by demand from the **cloud sector** for both **AI** and general servers [1][2]. - **Global Shipments**: Global server shipments reached **4.2 million units** in 3Q25, remaining flat quarter-over-quarter (q/q) but showing a **14% y/y** increase. The growth was largely attributed to cloud demand, despite some impacts from tariff pull-ins [2][11]. - **AI Server Demand**: AI servers continue to be a strong growth area, with expectations for robust demand throughout 2026. The report notes that AI server yields are improving as original design manufacturers (ODMs) and original equipment manufacturers (OEMs) enhance testing capacities [3][5][15]. Vendor Performance - **Dell**: Experienced a **1% decline** in total server shipments q/q, but its average selling price (ASP) increased by **11%** [3]. - **Lenovo**: Reported a **14% increase** in total server shipments, attributed to strong performance from Microsoft's general servers, although its ASP declined by **17%** [3]. - **Super Micro**: Saw a **20% decline** in total server shipments q/q, but its ASP increased by **9%** [3]. - **Aggregate ODM Shipments**: Totaled **1,827k units**, down **4% q/q** but up **37% y/y**. The market share for ODMs decreased by **1.8 percentage points** to **43.5%** [4][15]. Segment Performance - **High-End Servers**: Shipments grew **384% y/y** and **3% q/q** in 3Q25, indicating strong demand for AI servers [12]. - **Mid-Range Servers**: Increased by **32% y/y** and **6% q/q** [12]. - **Entry-Level Servers**: Grew by **10% y/y** but saw a **1% decline** q/q [12]. Regional Insights - The **US** market outperformed others with a **18% y/y** increase in shipments, followed by **APxJ** at **17%**. Other regions like **Western Europe**, **Japan**, and **Rest of World (RoW)** experienced declines [11]. Future Outlook - The report anticipates continued growth in AI server shipments through 2026, with general compute servers expected to grow in the **5-10% range** [15]. - **Preferred Picks**: The report highlights several companies as preferred investment picks, including **Wistron**, **Hon Hai**, **FII**, **Wiwynn**, and **Quanta** [6]. Additional Notes - The report emphasizes the ongoing transition in server technology, particularly the shift from traditional GPU servers to more advanced rack-scale systems [3]. - The ASP for ODM direct servers increased by **7% q/q** to approximately **US$36.5k**, reflecting a higher contribution from AI servers [14]. This summary encapsulates the key findings and insights from the datacenter market report, providing a comprehensive overview of the current state and future expectations within the server segment.