AI Component Shortages Push Campus Switch Prices Up 19%

Sep 8, 2026
AI related component shortages pushed campus switch prices higher in the second quarter of 2026. Average selling prices rose 19%, driving market revenue growth despite availability constraints.
AI Component Shortages Push Campus Switch Prices Up 19%

Dell'Oro Group said in a press release that AI related component shortages affected campus switch availability and prices in the second quarter of 2026. Average selling prices rose 19%, pushing overall market revenue into positive growth.

The shortages increased component costs and led to list price increases for nearly all campus switches. Cisco, Arista, Ubiquiti, and Extreme gained market share compared with the same period a year earlier.

Revenue from switches managed through public cloud services rebounded, while modular switch systems recorded unusual growth. Dell'Oro expects memory shortages to continue affecting the market into 2027, while switch replacements and security concerns support demand.

We hope you enjoyed this article

Consider subscribing to one of our newsletters like Silicon Brief, Enterprise AI Brief or Daily AI Brief.

Also, consider following us on social media:

AI Chips & Datacenters Enterprise AI AI Brief AI Brief (X)
Free newsletter

Silicon Brief

Weekly coverage of AI hardware developments including chips, GPUs, cloud platforms, and data center technology.

AI Token Webinar

Whitepaper

Tensordyne Napier: What If One Rack Could Do the Work of Nine?

Tensordyne

This Tensordyne whitepaper presents Napier, an inference-focused AI processor and rack-scale system based on the company’s TDN Math logarithmic number system. It examines infrastructure requirements for large mixture-of-experts and agentic models, compares major inference architecture approaches, and details the TDN AIP processor, TDN72 pod, TDN Link fabric, and Napier Ultra configuration. The paper reports simulation-based performance, cost, and accuracy-validation results, including Tensordyne’s projected comparison of one Napier rack with a nine-rack Nvidia Rubin plus Groq deployment; the chip is reported as taped out and in fabrication.

Read more

You may also like

Free, six days a week

Daily AI Brief: the AI news that matters, in your inbox.