Investing.com -- Mizuho analysts raised their estimates and price target for Dell Technologies (NYSE:DELL), highlighting its increasing share in the AI server market as NVIDIA (NASDAQ:NVDA) leads the charge toward a projected $2 trillion data center AI infrastructure (DCAI) opportunity by 2028-29.
In their latest note, Mizuho (NYSE:MFG) said NVIDIA's Blackwell GPUs and next-generation products, like the NVL72 and GB300A, are driving higher server average selling prices (ASPs) and reshaping the market landscape.
"Dell is gaining share in AI servers as capex percolates and NVDA GPUs supply expands to Tier 2 CSPs and Enterprise/Sovereign customers," Mizuho stated, adding that this trend is expected to significantly boost Dell's position through 2025.
The analysts emphasized the rapid adoption of NVIDIA's GPUs, including the ongoing Blackwell ramp, which could support NVIDIA's January quarter guidance.
Mizuho projected that December/January shipments of 150,000-200,000 GB200 GPUs might add up to $7-8 billion in upside potential for NVIDIA's revenue. This momentum is seen as a "strong tailwind for Dell," as it positions itself as a key systems integrator in the evolving AI server market.
Looking ahead, Mizuho highlighted a significant market expansion. "We estimate Tier 2 CSP and Enterprise/Sovereign accounting for ~48% of AI server spend by 2027E, out of the total estimated spend ~$300B, and growing at a 42% C24-27E CAGR," they wrote.
This segment alone is expected to grow at a compound annual growth rate (CAGR) of 42% between 2024 and 2027, out of a total estimated market spend of $300 billion.
Dell's focus on competitive pricing and expanding GPU offerings are seen as positioning it well to capitalize on these shifts. Mizuho also flagged the potential for Dell to secure future orders from major players like Apple (NASDAQ:AAPL) as the AI server market continues its rapid growth.