AI investment continues to be an important topic of discussion on Wall Street. The business that AI servers bring cannot be overlooked.
DELL and Hewlett Packard Enterprise, two of the strongest players in this segment, offer a good way to gain exposure to AI’s potential through their server business.
The companies are well-positioned to take advantage of the AI boom.
We’ll see which AI server company has the best chance of winning.
Super Micro Computers is the leader in the computer market
Super Micro Computers dominates the AI server market.
The company has been criticized for accounting infractions.
Direct Liquid Cooling (DLC) is owned by the company to the tune of 70%.
DLC is a niche that’s relatively new. Although SMCI was able to gain a decent market share at first, other players are likely to join in the future.
If they are able to improve their technology, relationships and contracts and have better relations with customers and suppliers then it is possible for them to delay.
Both DELL and HPE will benefit from future investments in servers.
HPE will host an AI conference next month that will focus on DLC. The company is just beginning to develop their plan for dominating this market.
For now DELL is the largest player, and it will soon be taking its share of the pie.
Nvidia CEO pointed out recently that servers utilizing Blackwell GPUs would require Direct Liquid cooling.
DELL has an excellent relationship with Nvidia, thanks to its Blackwell GPUs. It may even be the biggest beneficiary among the three firms once the new GPU line hits the market.
HPE dominates the high-performance computing market
HPE is a leader in high-performance computing.
After acquiring Cray Systems, it became a leading player in the high-performance AI Infrastructure.
HPE takes the largest share of enterprise workloads by focusing on areas such as scientific research, climate modeling and others.
DELL, on the other side of things, focuses on offering scalable AI for mid-market clients.
DELL is a company that targets users who are interested in AI-based computing but don’t necessarily need supercomputers.
HPE may be the winner in this market segment but the fact they serve slightly different types of customers means that their revenues don’t overlap.
Integration of software and the cloud
Here’s where it gets interesting. HPE’s focus has always been on the integration of AI infrastructure and software.
It is also useful in multi-cloud and hybrid environments.
DELL, on the other side, is hardware-centric. The company offers high-performance AI server products with powerful GPUs.
The lack of software is the reason why customers who use hybrid AI systems do not like the superior hardware.
HPE is therefore the leader in cloud and software integration.
Both companies have a solid bet in AI servers, despite HPE’s clear edge.
HPE is the best choice if you believe that AI will become more complex in the future.
Both stocks will give you exposure to the AI market through both companies.
This article DELL vs. HPE – Which is the better choice for AI servers? This post may change as new information becomes available
This site is for entertainment only. Click here to read more
