After completing a new round of supply chain investigation, Ming-Chi Kuo said that Dell has asked many AI server parts (including chassis and motherboard SMT, etc.) manufacturers with production bottlenecks to significantly expand production capacity to 200% and prepare Dell’s server shipments are estimated to grow by 15% in 2024.
Image source DELL
Ming-Chi Kuo believes that enterprises will not choose AI-hosted cloud solutions due to various considerations such as ease of management, data security, and customization requirements for integration with the company’s existing IT infrastructure, but will instead build their own AI servers.
The most important reason why Dell stands out is that it launched PowerEdge servers equipped with NVIDIA AI chips before its competitors, and cooperated with Meta Company to help enterprise customers deploy the Llama 2 AI model locally.
The deployment of AI servers favors the demand for traditional servers, mainly because traditional servers need to be upgraded to run AI applications, while AI servers can improve the utilization of traditional servers.
Ming-Chi Kuo said that in 2023, Dell’s AI server shipments will be between 10,000 and 15,000 units due to chip supply constraints, but shipments next year are expected to reach 25,000 to 30,000 units, or even higher.
Stimulated by AI servers, Dell’s traditional server shipments are driven. It is estimated that total server shipments will resume growth to 15% in 2024, while falling by about 10% year-on-year in 2023.
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