Dell, HP Enterprise likely to benefit from Super Micro's woes: Citi

Dell Technologies (NYSE:DELL) and HP Enterprise (NYSE:HPE) may wind up benefiting from Super Micro Computer’s (NASDAQ:SMCI) troubles, investment firm Citi said on Wednesday.
Dell shares rose 2% in premarket trading, while HP Enterprise was up 3.7%. Conversely, Super Micro was down 18% after it reported weaker-than-expected results and guidance.
“Given Supermicro’s woes, we believe Dell, and to a lesser extent HPE, will likely benefit from improving AI order momentum and competitive intensity in the quarters ahead,” Citi analyst Asiya Merchant wrote in a note to clients.
Super Micro said on its earnings call that Nvidia (NVDA) has not made any changes to how it allocates GPUs to its customers. Merchant added that Super Micro management said it does not expect any impediments to “raising working capital” in an effort to fulfill higher cost Blackwell GPU orders.
Merchant has a Buy rating and $160 price target on Dell, while she has a Neutral rating and $20 price target on HP Enterprise.

Tags: SMCI

Dell, HP Enterprise likely to benefit from Super Micro’s woes: Citi