$Dell Technologies Inc.(DELL)$
Dell seems well-positioned for notable growth in the upcoming quarters, particularly as businesses seek to mitigate risks associated with SMCI woes.
Companies focused on meeting deadlines and financial targets are likely to turn to more stable suppliers like Dell for their AI server needs.
NVIDIA Corporation, a key supplier for SMCI, could face difficulties if SMCI fails to secure adequate funding. Given that SMCI operates with negative working capital and relies heavily on cash to acquire GPUs and cooling systems for its large-scale Blackwell rack systems, NVIDIA may need to reconsider its supply strategies.
This situation could create opportunities for Dell to step in and relieve pricing pressures within the AI server market. While Dell previously opted out of large-tier cloud agreements due to unappealing margins, the current environment might prompt them to reconsider these opportunities, particularly with the prospect of increased GPU supply and diminished competition from SMCI.
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