The Server Boom Balances Price Increases Against Chip Shortages
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The global server market experienced modest declines in early 2026 despite strong overall demand, because rising component prices offset the impact of chip shortages. GPU-accelerated servers and specialized XPU systems now account for roughly 70 percent of total server revenues, while traditional X86 servers have fallen to just over half the market. Component costs for datacenter accelerators have become extremely expensive, with GPU systems with specialized memory now costing around $50,000 and potentially approaching $100,000 with next-generation devices. Server manufacturers appear to be using price increases to maintain margins during a period of constrained supply and high demand.
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