“The AI opportunity for the DCPI market is getting closer, and bigger,” said Lucas Beran, Research Director at Dell’Oro Group. “DCPI vendors are increasing manufacturing capacity to support the expected scale of orders for purpose-built AI facilities.

“The Ethernet Adapter market is poised for a compound annual growth rate of 13 percent, fueled by the increasing adoption of higher-speed ports and Smart NICs within data center infrastructures,” said Baron Fung, Senior Research Director at Dell’Oro Group.

“Backlog normalization, capacity digestion, and spending optimization are all expected to hit the market in 2024,” said Sameh Boujelbene, Vice President at Dell’Oro Group. “Additionally, the recently announced HPE/Juniper acquisition may further depress sales performance this year…

“Recent interviews with major Cloud service providers (SPs) unveiled multiple projects experiencing delays or being put on hold due to a shift in focus to AI infrastructure build-outs,” said Sameh Boujelbene, Vice President at Dell’Oro Group.