Comparing Dell Technologies and Super Micro Computer for AI Server Investments
Saturday, 6 April 2024, 20:25
AI Server Stock Analysis: Dell vs. Super Micro Computer - Which is the Better Investment?
Both server manufacturers are flying high on the stock market thanks to the growing demand for AI chips. The market for artificial intelligence (AI) servers has taken off in the past year as cloud companies and data center providers pour money into building their AI infrastructure and developing generative AI applications.
The case for Dell Technologies:
- Dell reported a significant increase in orders for AI-optimized servers, indicating a growing demand for AI servers.
- Dell has lucrative AI-related catalysts in the form of growing AI server backlog and adoption of AI-enabled PCs.
The case for Super Micro Computer:
- Supermicro generates over 50% of its revenue from AI-related server solutions, leading to substantial revenue growth.
- Consensus estimates expect Supermicro's top-line growth to remain solid in fiscal 2024 and beyond, showcasing strong potential.
Considering the growth rates, valuations, and revenue sources, investors must carefully evaluate Dell Technologies and Super Micro Computer for AI server investments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.