Source: Finance Association
① Dell will announce its new quarterly earnings report on Thursday afternoon EST. Wall Street is looking forward to this, and has raised expectations for Dell's stock price one after another; ② Earlier, Nvidia announced the establishment of an AI factory with Dell, and Hwang In-hoon also commented that no one is better at building large-scale end-to-end systems for the enterprise than Dell.
$NVIDIA (NVDA.US)$With the help of artificial intelligence, Dongfeng ushered in a sharp rise in market capitalization.$Dell Technologies (DELL.US)$It is expected to become Wall Street's next favorite with Nvidia's Dongfeng.
Whether it's Nvidia's chip or artificial intelligence model, it requires a carrier to enter the consumer market, making Dell, whose business spans a variety of products, from personal computers to data storage devices to software, undoubtedly become another potential winner.
Before Dell released its quarterly earnings report on Thursday, Wall Street intensively raised the company's target share price to show optimism about the company's profit future.
Bank of America analyst Wamsi Mohan raised Dell's target share price from $130 to $180, Loop Capital raised Dell's target price from $125 to $185, and Wells Fargo raised Dell's share price from $140 to $170.
Analysts expect that in the fiscal quarter ending April, Dell's server revenue will increase 31% year over year, reaching just over $5 billion. This will be the department's best growth rate in more than four years. Dell's earnings per share are estimated at 57 cents, and revenue is estimated at $21.56 billion.
The benefits are gathered
Compared to ultra-microcomputers, which are smaller in scale and focus on professional artificial intelligence servers, Dell's foundation is more stable and its business is more diverse. This has allowed Dell to grow more steadily and develop its artificial intelligence server business more calmly.
According to research firm IDC, the PC market, which accounts for more than half of Dell's revenue, has recently shown signs of improvement. Furthermore, new computers equipped with artificial intelligence will also enter the market this year, creating conditions to boost demand.
On the other hand, Dell's partnership with Nvidia made Wall Street look forward to it even more. Earlier, Dell and Nvidia announced the launch of the Dell AI Factory, stating that it is the industry's first organization to provide end-to-end enterprise AI solutions to meet the complex needs of enterprises seeking to utilize AI technology.
Last week, Nvidia CEO Wong In-hoon also appeared on the same stage as Dell CEO Michael Dell at Dell's annual developer conference, and said that no one is better at building large-scale end-to-end systems for the enterprise than Dell.
Goldman Sachs analyst Michael Ng said that Dell servers seem to enjoy priority supply rights for Nvidia GPUs, which means that the pressure on the number of chips may be much less than that of its competitors.
In addition, Evercore ISI analyst Amit Daryanani said he understood that Dell has won most of Tesla's AI server construction business, which will bring it revenue of 25-30 billion US dollars and be recorded in 2024.
Bank of America's Mohan also pointed out that Dell recently launched the Dell AI factory and expanded its product portfolio with 5 new AI computers, all-flash file storage, network architecture, and AI service products.
He added that considering the many benefits of artificial intelligence servers, storage requirements driven by IBM mainframe updates, and demand brought about by PC updates, Dell will usher in “spring” next year.
editor/tolk