Supermicro concerns may help Dell gain AI server share, says Evercore ISI

Evercore ISI says that given some of the recent negative concerns around Supermicro (SMCI) the firm thinks “it’s critical to think through the competitive landscape when it comes to AI servers,” adding that it thinks Dell (DELL) is poised to gain share and “remains a logical partner for customers who look for better/different supply chain diversity, and crucially, a strong services offering through the deployment lifecycle.” The firm’s view remains that key customers like CoreWeave and the “Musk Companies” of Tesla (TSLA), X, and xAI are “largely dual sourcing production” across both Dell and Supermicro, adding that it thinks HP Enterprise (HPE) can “potentially scale into some of these ramps as well.” The firm, which estimates that Dell’s AI server revenues are on track to do $8B-plus in sales this year and likely get to greater than $10B next year, maintains an Outperform rating and $140 price target on Dell shares.