AI Servers Are On Fire But Cloud Continues To Win The Day
theCUBEresearch, Saturday, June 15th, 2024
Earnings prints from the likes of Dell, Supermicro and more recently HPE have shown the AI server trend is not just benefiting cloud hyperscalers but also firms with large on-premises installed bases.
Oracle as well is trading at an all time high citing cloud momentum and recent deals with Google, OpenAI and prior deals with Microsoft. But make no mistake, the momentum from the big three US hyperscalers remains impressive, especially when considering the size of these firms. Combined, IaaS and PaaS infrastructure revenue for AWS, Azure and Google Cloud Platform will approach $195B this year. Add in Alibaba and the market will exceed $200B and is growing above 20% annually. One notable callout however is Supermicro, which is growing in the triple digits and has put itself directly into the AI server mix.