Nvidia results positive for Dell, HPE, SuperMicro: Citi

Investing.com -- Nvidia’s latest earnings report highlights growing enterprise AI demand, with positive implications for server manufacturers Dell Technologies (NYSE:DELL), Hewlett Packard Enterprise (NYSE:HPE), and SuperMicro, according to Citi analysts.

The bank explained in a note Thursday that Nvidia’s reported revenue of $35 billion for the October quarter marked a 90% year-over-year increase and exceeded consensus expectations. Guidance for $37.5 billion in the January quarter implies a 70% year-over-year growth trajectory, surpassing Street estimates.

Nvidia (NASDAQ:NVDA) also announced that shipments of its Blackwell GPUs are set to begin next quarter and will ramp up over the coming year, with demand projected to exceed supply for several quarters.

Crucially, Nvidia highlighted strong adoption of AI in enterprise environments, stating that enterprise AI revenue for the full year is expected to more than double compared to 2023 levels, with a robust and growing pipeline.

“We believe the demand read-through is positive for enterprise server OEMs,” Citi wrote, specifically naming Dell, HPE, and SuperMicro as key beneficiaries.

Both Dell and HPE have recently emphasized the scale of the AI opportunity. Dell estimates the AI total addressable market (TAM) to reach $174 billion by 2027, representing a 20-25% compound annual growth rate from 2023 levels.

HPE has cited similar projections, aligning with Nvidia’s optimistic outlook for enterprise AI.

Citi views Nvidia’s results and commentary as further validation of the enterprise sector’s accelerating pivot toward AI capabilities, driving demand for servers and infrastructure.