Dell Technologies (DELL) XE9860 Servers to be Used by CoreWeave
Dell Technologies DELL recently announced that CoreWeave has purchased thousands of its PowerEdge servers. This will offer enterprises served by CorwWeave with the computing capacity they require to utilize artificial intelligence (AI) and generative AI, further strengthening their cloud platform.
CoreWeave will boost its cloud solutions with Dell PowerEdge XE9860 servers equipped with NVIDIA NVDA H100 Tensor Core GPUs, which are designed for AI, machine learning, VFX illustration and large-scale calculations.
The collaboration will allow CoreWeave to provide high-performance next-generation cloud computing even during the peak season and access thousands of accelerated Dell servers in seconds to speed up compute-intensive workloads.
CoreWeave will also utilize Dell ProSupport services to maximize the uptime of its new systems, while professional Dell managers will assist in maintaining the environment.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
Dell’s Strong Portfolio Aids Growth
Dell’s shares have surged 80.1% year to date, outperforming the Zacks Computer and Technology Sector’s rise of 49.1%. The company is benefiting from an expanding clientele and strong partner base.
The company’s strong portfolio is helping it win market share in the AI domain.
Dell recently launched upgraded PowerScale systems that comprise improved storage solutions for higher AI and Generative AI outcomes to help users access data quickly.
It partnered with NVIDIA to upgrade NVIDIA DGX SuperPOD, which includes the NVIDIA AI Enterprise software platform, with new enterprise data storage improvements and validations.
With Dell’s improved storage, NVIDIA users can accelerate their AI and Generative AI activities.
Dell’s current offering, Dell Validated Design for Generative AI with NVIDIA for Model Customization, provides pre-trained models that extract insights from data, saving enterprises from having to build models from scratch.
Its expanding relationship with Microsoft MSFT is noteworthy. Dell recently launched Microsoft 365 Copilot, which will assist users in implementing scalable next-generation AI capabilities. Dell APEX File Storage recently expanded its portfolio to include Microsoft Azure.
Dell also inked an agreement with Imbue to build a new performance computing cluster to train AI agents from various domains with foundation models.
However, a tough macroeconomic environment is expected to hurt Dell’s prospects in the near term.
For the fourth quarter of 2024, Dell expects revenues between $21.5 billion and $22.5 billion. The Zacks Consensus Estimate for Dell’s revenues is pegged at $22.13 billion, indicating a decline of 11.61% year over year. The consensus estimate has risen 1.8% over the past 30 days.
The consensus mark for fourth-quarter 2024 earnings is pegged at $1.74 per share, indicating a decline of 3.3% year over year.
The Zacks Consensus Estimates for fiscal 2024 revenues is pegged at $88.24 billion, indicating a fall of 13.75% from fiscal 2023 levels.
For fiscal 2024, Dell’s earnings are expected to be in the band of $6.53-$6.73 per share. The consensus estimate for fiscal 2024 earnings is pegged at $6.60 per share, up 6.33% over the past 30 days and indicating a decline of 13.27% year over year.
Zacks Rank & Stock to Consider
Dell currently has a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Flex FLEX, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flex shares have gained 33.6% in the year-to-date period. Flex’s long-term earnings growth rate is currently projected at 12.4%.
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Original: NVDA Feed: Dell Technologies (DELL) XE9860 Servers to be Used by CoreWeave