{"id":48337,"date":"2023-08-14T17:43:01","date_gmt":"2023-08-14T21:43:01","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/computer-server-demand-is-fading-artificial-intellience-may-be-why\/"},"modified":"2023-08-14T17:43:04","modified_gmt":"2023-08-14T21:43:04","slug":"computer-server-demand-is-fading-artificial-intellience-may-be-why","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=48337","title":{"rendered":"Computer Server Demand Is Fading. Artificial Intellience May Be Why."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000719303\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>The demand for traditional computer servers is deteriorating as technology buyers keep shifting budget dollars into artificial intelligence projects.<\/p>\n<p>On Monday, Susquehanna analyst Mehdi Hosseini said he expects PC server shipments to disappoint in the September quarter.<\/p>\n<div class=\"paywall\">\n<p>\u201cRecent checks suggest a slower recovery in the Server shipment,\u201d he wrote. \u201cYes, Generative AI is certainly having a hollowing effect. But, we are also hearing of a weaker utilization of traditional Servers.\u201d<\/p>\n<p>Hosseini said third-quarter server shipments are tracking up 3% quarter over quarter, which is \u201cmuch slower\u201d than prior expectations of up 10% quarter over quarter. <\/p>\n<p>Traditional servers are now projected to be down 20% year over year in the quarter, and AI servers are estimated to be up 23% year over year, according to the analyst.<\/p>\n<p>\n        Dell Technologies<br \/>\n       (ticker: DELL) and<br \/>\n        Hewlett Packard Enterprise<br \/>\n       (HPE) are two of the largest sellers of servers worldwide.<\/p>\n<p>Susquehanna\u2019s numbers are the latest evidence that rising interest in AI may be cannibalizing spending from other buckets. <\/p>\n<p>Prominent chip executives and Wall Street firms have been saying customers are feverishly prioritizing AI projects. <\/p>\n<p>Last month,<br \/>\n        Taiwan Semiconductor Manufacturing<br \/>\n       Chairman Mark Liu said the chip manufacturer saw signs that AI-related demand was taking sales away from traditional server chips. <\/p>\n<p>A week before Liu\u2019s remarks, Piper Sandler released a survey of corporate technology buyers that showed generative AI had risen nine spots to become the top emerging technology trend for the next three years, with 75% of CIOs either testing or implementing projects.<\/p>\n<p>Piper\u2019s analysts also predicted server makers would be most at risk of facing additional budget pressures later this year. Their prediction looks to be coming true. <\/p>\n<p>Write to Tae Kim at tae.kim@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/computer-server-demand-ai-dell-hewlett-packard-enterprise-fc5a0d1b?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The demand for traditional computer servers is deteriorating as technology buyers keep shifting budget dollars into artificial intelligence projects. On Monday, Susquehanna analyst Mehdi Hosseini said he expects PC server shipments to disappoint in the September quarter. \u201cRecent checks suggest a slower recovery in the Server shipment,\u201d he wrote. \u201cYes, Generative AI is certainly having [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":48338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-48337","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Computer Server Demand Is Fading. 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