A Dedicated Server can be defined as a physical server where all the resources are located in a single of one machine which is fully configured to be used by a single user. It is just not like Shared Hosting server, where the resources are distributed among the other users. A Dedicated Server lets you benefit from every resource available such as RAM, storage, computing power, etc.
The performance of dedicated server depends upon its configuration. Bigger the resources the better performance is given by the server. Dedicated server should be able to handle any kind of traffic. Here the traffic means that it does not matter even the visitor to the site is high or low the performance should be uniform of the server.
The servers are highly configured with latest hardware.