Nvidia’s (NVDA) third-quarter results and guidance demonstrated ongoing momentum related to artificial intelligence infrastructure, which appears positive for server solutions companies such as Dell (DELL) and HP Enterprise (HPE), according to J.P. Morgan.
Nvidia reported a 66% year-over-year surge in data center revenue, which proves positive for server original equipment manufacturers, including Dell, HPE and Supermicro (SMCI), J.P. Morgan said. The momentum also appears beneficial for optical component suppliers, including Coherent (COHR), Fabrinet (FN) and Lumentum (LITE).
In fact, every one of the above names was up during pre-market trading on Thursday. Supermicro was up 6%, HPE had increased 1.7% and Dell had ticked up 3%. Meanwhile, Coherent, Fabrinet and Lumentum had climbed 6%, 3% and 7%, respectively.
Nvidia’s Networking segment revenue surged 162% year over year.
“Networking revenue more than doubled in F3Q26 from a year ago levels, led by NVLink as well as robust double-digit growth across Spectrum X Ethernet and Quantum X InfiniBand,” said J.P. Morgan analysts, led by Samik Chatterjee, in an investor note. “Importantly, Nvidia highlighted Ethernet wins across Meta (META), Microsoft (MSFT), Oracle (ORCL) and xAI (X.AI), ‘each running OS of choice,’ and noted a majority of AI deployments now include switches with Ethernet GPU attach rates roughly on par with InfiniBand.”