JPMorgan has significantly increased its server shipment forecasts, citing AI inference as a key driver. The bank's July 15 report revised the 2026 server growth rate from 15% to 22% and 2027 from 8% to 25%. By 2028, server CPU shipments are expected to rise from 26 million to 68 million units, with AI-related demand accounting for 53 million units. Conversely, the PC market is facing challenges due to rising memory prices, leading to increased costs and a projected 8% decline in 2026 shipments. Consumer PCs are expected to see a sharper drop of 14%. Supply constraints across components like CPUs and memory exacerbate the situation. AI server vendors such as Dell Technologies and HPE are poised to benefit, while component suppliers like Arista Networks and Micron Technology are also expected to gain from the shift in value towards components.