Investors are interested in Dell Technologies and Hewlett Packard for AI server growth.

From Nasdaq: 2024-11-29 16:17:00

Dell Technologies and Hewlett Packard Enterprise are partnering with Nvidia to develop AI servers, catching investors’ attention. Dell reported favorable Q3 results, while HPE’s quarterly report is awaited. Despite strong demand for AI servers, traditional PC demand is soft, raising questions about buying DELL or HPE stock.

Dell’s Q3 sales increased by 10% to $24.36 billion, with ISG segment sales hitting a record $11.4 billion. Q3 earnings of $2.15 per share surpassed expectations, marking 11 consecutive quarters of beating EPS consensus.

Dell’s weaker-than-expected revenue guidance for Q4 raises concerns about traditional PC demand. Hewlett Packard’s upcoming results show expected growth in Q4 sales and earnings, with strong server revenue performance in Q3.

Dell’s stock is up over 60% this year, with HPE up 25%, outperforming broader indexes. Both companies trade at attractive valuations compared to Nvidia, potentially making them cheaper alternatives for AI exposure.

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Read more at Nasdaq: Buy Dell Technologies or Hewlett Packard Stock for AI Server Growth?