Nvidia’s results are a positive for Dell and enterprise AI demand: Citi
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- Nvidia’s (NASDAQ:NVDA) strong results and guidance bode well for the continued strength in enterprise artificial intelligence demand, notably benefiting Dell Technologies (NYSE:DELL), Citi said.
- “Specifically, during the call, management noted strong traction of AI in enterprise environments (Agent AI) with full-year AI enterprise revenues to more than double from last year with pipeline continuing to build,” analyst Asiya Merchant said in a note to clients. “Overall, we believe the demand read through is positive for enterprise server OEMs (Dell, HPE, SuperMicro).”
- Merchant, who has a Buy rating and $160 price target on Dell, added that both Dell and HP Enterprise (HPE) see a total addressable market for AI between $171B and $174B by 2027, representing between 20% and 25% growth on a compound annual basis from 2023.
- Dell shares rose 2% in early trading on Thursday.