A DHCP server automatically provides computers/devices with network configuration

A DHCP server automatically provides computers/devices with network configuration, including an IP address.

For example:

Computer joins network
→ sends a DHCP Discover
→ DHCP server responds with an IP address offer
→ computer requests it
→ DHCP server confirms it.

The common sequence is DORA:

1. Discover — “Is there a DHCP server?”
2. Offer — “Here’s an available IP address.”
3. Request — “I’d like to use that IP.”
4. ACK — “Okay, you can use it.”

DHCP can also provide things like the subnet mask, default gateway, and DNS/name server.

So yes: DHCP servers assign IP addresses to devices on a network.