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.

Summary of Global Server and AI Server Market Insights Industry Overview - The report focuses on the global server market, particularly AI training servers, AI inferencing servers, general servers, and high-performance computing (HPC) servers. It also discusses the capital expenditure (capex) trends of leading cloud service providers (CSPs) in the US and China. Key Insights Market Estimates and Growth Projections - The total addressable market (TAM) for global servers is projected to grow significantly, with estimates of **US$433 billion**, **US$606 billion**, and **US$764 billion** for the years 2025, 2026, and 2027 respectively, reflecting year-over-year growth rates of **71%**, **40%**, and **26%** [18][27]. - AI server shipments are expected to increase to **2,605k units** by 2027, with a notable rise in high-power AI servers, which are projected to grow by **56%**, **67%**, and **34%** YoY from 2025 to 2027 [14][12]. AI Server Segment Insights - The report anticipates a total of **19k**, **55k**, and **80k** full rack AI servers to be shipped in 2025, 2026, and 2027 respectively, with a TAM size of **US$55 billion**, **US$165 billion**, and **US$255 billion** for the same years [12][9]. - ASIC adoption in AI chips is expected to rise, accounting for **38%**, **40%**, and **50%** of AI chips in 2025, 2026, and 2027 respectively, up from previous estimates [1][3]. Capital Expenditure Trends - Leading US CSPs are forecasted to increase their capex budgets by **78%**, **37%**, and **15%** YoY from 2025 to 2027, an increase from previous estimates of **67%**, **23%**, and **15%** [10][27]. - Chinese CSPs are also expected to grow their capex by **62%**, **17%**, and **9%** YoY during the same period, up from **55%**, **8%**, and **6%** [30][31]. AI Chip Demand - The demand for AI chips is projected to reach **11 million**, **16 million**, and **21 million** units in 2025, 2026, and 2027 respectively, driven by the increasing volume of AI servers [1][9]. - The implied number of AI chips for training and inferencing is expected to be **20,838k units** by 2027, with a mix of **50%** GPU and **50%** ASIC chips [22][23]. Additional Insights - The growth in AI server shipments is supported by the increasing applications of AI technologies and the introduction of new chip platforms, including AMD's "Helios" AI server rack [1][9]. - The report highlights the importance of baseboard-based AI servers, which offer greater customization and lower costs for clients, contributing to a more positive demand outlook [12]. Conclusion - The global server market, particularly in the AI segment, is poised for substantial growth driven by increased demand for AI infrastructure and significant capital investments from leading cloud service providers. The shift towards ASIC chips and diversified chip platforms is expected to further enhance market dynamics in the coming years.

Summary of Global Server Market and AI Server Insights Industry Overview - The report focuses on the global server market, particularly the AI server segment, with projections extending to 2027E. The analysis includes various types of servers such as ASIC AI servers, AI training servers, AI inferencing servers, general servers, and HPC servers [1][14]. Key Insights Market Projections - The global server market is projected to grow significantly, with total revenues expected to reach **US$359 billion**, **US$474 billion**, and **US$563 billion** in 2025E, 2026E, and 2027E respectively, reflecting year-over-year growth rates of **42%**, **32%**, and **19%** [14][30]. - AI server shipments are expected to increase, with **10 million**, **14 million**, and **17 million** AI chips required in 2025E, 2026E, and 2027E, respectively. The contribution of ASIC shipments is projected to rise from **38%** in 2025E to **45%** in 2027E [1][8]. AI Server Segment Growth - High power AI servers (powered by **500 TFlops+ ASIC and GPUs**) are forecasted to see a **21%** and **39%** increase in volume estimates for 2025E and 2026E, respectively. Inferencing AI servers are expected to grow by **3%** and **5%** in the same years [3][11]. - Full rack AI servers are estimated to ship **19,000** units in 2025E, increasing to **67,000** units by 2027E, with a total addressable market (TAM) of **US$54 billion**, **US$157 billion**, and **US$232 billion** for 2025E, 2026E, and 2027E respectively [11][30]. Cloud Service Provider (CSP) Capital Expenditure - Leading US CSPs are projected to increase their capital expenditure (capex) by **67%**, **23%**, and **15%** year-over-year from 2025E to 2027E. In contrast, leading Chinese CSPs are expected to grow their capex by **55%**, **8%**, and **6%** in the same period [8][24][27]. AI Chip Demand - The demand for AI chips is expected to reach **9,990 thousand**, **13,631 thousand**, and **16,551 thousand** units for training and inferencing combined in 2025E, 2026E, and 2027E, respectively. The mix of GPU and ASIC chips is projected to shift, with GPUs making up **62%** in 2025E and decreasing to **55%** by 2027E, while ASICs will increase from **38%** to **45%** [3][20]. Additional Insights Revenue Breakdown - The revenue breakdown for AI servers indicates that training servers will generate **US$189.6 billion**, **US$294.6 billion**, and **US$370.6 billion** in 2025E, 2026E, and 2027E, respectively. High power AI servers are expected to generate **US$135.9 billion**, **US$137.9 billion**, and **US$139 billion** in the same years [30]. - General servers are projected to see revenues of **US$133.7 billion**, **US$140.2 billion**, and **US$146.5 billion** from 2025E to 2027E, indicating a recovery in the general server market [30]. Market Dynamics - The growth in AI applications and increased cloud capex are driving the demand for AI servers. OpenAI's user base has quadrupled to **700 million** weekly active users, indicating a broader adoption of AI technologies [3][11]. Competitive Landscape - The report highlights key players in the AI server market, including ODMs like Wiwynn, Wistron, and Hon Hai, as well as companies involved in silicon photonics and liquid cooling technologies [2]. This comprehensive analysis provides a detailed outlook on the global server market, emphasizing the significant growth potential in the AI server segment driven by technological advancements and increased cloud investments.