Global AI Server Shipment Predictions Witness Significant Drop Due to Geopolitical Tensions and Tariff Uncertainty

The AI server industry is poised for a reduction in year-over-year growth projections, largely due to the uncertainties associated with U. S.export restrictions, alongside supply chain disruptions spurred by geopolitical issues.

Microsoft, Meta & Google: Committed to AI Investment Amid Short-term Slowdown

Globally, the momentum surrounding artificial intelligence remains robust, particularly in North America where major tech companies are heavily investing in AI infrastructure. However, recent insights from a report by TrendForce highlight a downward adjustment in global AI shipment forecasts. These figures have shifted from an anticipated 28% growth down to 24.3%.Although growth is still expected to be in double digits, this reduction stems primarily from disruptions in supply chains influenced by changing trade policies and evolving regional conflicts.

For major technology players, TrendForce indicates that investments in AI development remain on a steady rise. Companies like Microsoft are consistently integrating NVIDIA’s latest server technology, specifically the Blackwell Ultra GB300 AI servers, which have gained considerable traction among industry leaders. Despite Microsoft’s efforts to create a proprietary AI chip, progress has been stalled, pushing the project’s completion date to 2026.

Additionally, both Google and Meta are actively enhancing their AI server capabilities, leveraging in-house ASIC technology. While these giants have been staunch customers of NVIDIA, they are also exploring AMD’s rack-scale solutions, indicating a market desire for diversified options. Despite this, NVIDIA continues to dominate the AI server sector by a substantial margin. Furthermore, the trend towards developing in-house AI chips is gaining traction, with Google at the forefront through its innovative Tensor Processing Units (TPUs).

In summary, the trend of significant expenditure by tech giants on AI infrastructure shows no signs of abating. Year-over-year forecasts indicate a larger-scale uptick, reaffirming the sustained excitement and investment in AI technologies.

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