According to Zhitong Finance APP, Citigroup stated that nvidia's (NVDA.US) strong performance and guidance suggest sustained strong demand for enterprise ai, particularly benefiting dell technologies (DELL.US). Analyst Asiya Merchant mentioned in a report to clients, "Overall, we believe the demand is positive for enterprise server OEMs (Dell, hewlett packard enterprise, and supermicro)."

The analyst stated, "Specifically, during the earnings conference call, management noted that ai in the enterprise environment, especially Agent AI, has strong appeal, with ai enterprise revenue more than doubling compared to last year, and the business pipeline is still being built, leading to more potential clients or sales opportunities accumulating."

Merchant rated dell as a "buy" with a target price of $160. He added that both dell and hewlett packard enterprise (HPE.US) believe that the total addressable market for ai could reach between $171 billion and $174 billion by 2027, with a compound annual growth rate expected to be between 20% and 25% starting in 2023.

The latest financial report from ai leader nvidia released yesterday showed that multiple data points exceeded market expectations. Total revenue surged 94% in the third fiscal quarter, while net income doubled, and the revenue outlook for the next quarter also surpassed average expectations.

During the earnings conference, CEO Jensen Huang assured investors that its new product line, the Blackwell architecture ai GPU series, would continue to lead the significant expansion trend driven by the ai boom, pushing nvidia's stock price to reach an all-time high of $152.89 during Thursday's trading.

As of the time of writing, dell's stock price increased by 0.76% in after-hours trading.