Connect with us

Hi, what are you looking for?

Stock

Dell target raised at Mizuho as NVIDIA chases $2 trillion AI server market

Investing.com — Mizuho analysts raised their estimates and price target for Dell Technologies (NYSE:DELL), highlighting its increasing share in the AI server market as NVIDIA (NASDAQ:NVDA) leads the charge toward a projected $2 trillion data center AI infrastructure (DCAI) opportunity by 2028-29.

In their latest note, Mizuho (NYSE:MFG) said NVIDIA’s Blackwell GPUs and next-generation products, like the NVL72 and GB300A, are driving higher server average selling prices (ASPs) and reshaping the market landscape.

“Dell is gaining share in AI servers as capex percolates and NVDA GPUs supply expands to Tier 2 CSPs and Enterprise/Sovereign customers,” Mizuho stated, adding that this trend is expected to significantly boost Dell’s position through 2025.

The analysts emphasized the rapid adoption of NVIDIA’s GPUs, including the ongoing Blackwell ramp, which could support NVIDIA’s January quarter guidance.

Mizuho projected that December/January shipments of 150,000-200,000 GB200 GPUs might add up to $7-8 billion in upside potential for NVIDIA’s revenue. This momentum is seen as a “strong tailwind for Dell,” as it positions itself as a key systems integrator in the evolving AI server market.

Looking ahead, Mizuho highlighted a significant market expansion. “We estimate Tier 2 CSP and Enterprise/Sovereign accounting for ~48% of AI server spend by 2027E, out of the total estimated spend ~$300B, and growing at a 42% C24-27E CAGR,” they wrote.

This segment alone is expected to grow at a compound annual growth rate (CAGR) of 42% between 2024 and 2027, out of a total estimated market spend of $300 billion.

Dell’s focus on competitive pricing and expanding GPU offerings are seen as positioning it well to capitalize on these shifts. Mizuho also flagged the potential for Dell to secure future orders from major players like Apple (NASDAQ:AAPL) as the AI server market continues its rapid growth.

This post appeared first on investing.com

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Former president Donald Trump and his allies have filed hundreds of lawsuits, with more to come, seeking to tighten voting rules or disqualify voters....

    Economy

    LONDON (Reuters) – Bank of England interest rate-setter Megan Greene said she still believed the central bank should take a cautious approach to cutting...

    Editor's Pick

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Latest News

    Warner Bros. Discovery said Thursday its streaming platform Max added 7.2 million global subscribers in the third quarter. It marked the biggest quarterly growth for...

    Disclaimer: beneficialinvestmentnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 beneficialinvestmentnow.com