AI Server Giants: Dell Technologies vs HPE in the Battle for Dominance

Dell Technologies vs. HPE: Which AI Server Stock Has Greater Upside?

In the rapidly evolving landscape of artificial intelligence (AI), data analytics, and cloud computing, companies like Dell Technologies (DVMT) and Hewlett Packard Enterprise (HPE) are racing to stay ahead of the curve. Both companies have been investing heavily in AI-enabled server technology, and investors are eager to know which stock has greater upside potential.

Dell Technologies, a leading provider of IT infrastructure and cloud-based solutions, has been aggressively expanding its AI-enabled server offerings. The company's PowerEdge server portfolio has been designed to support AI and machine learning workloads, and its partnership with NVIDIA (NVDA) has enabled it to offer AI-optimized servers. Dell's acquisition of EMC Corporation in 2016 has also given it a significant foothold in the data storage and management market.

Hewlett Packard Enterprise, on the other hand, has been focusing on developing its own AI-powered server technology. The company's HPE ProLiant servers are designed to support AI and machine learning workloads, and its partnership with Microsoft (MSFT) has enabled it to offer AI-optimized servers. HPE's acquisition of SimpliVity in 2018 has also given it a strong presence in the hyperconverged infrastructure market.

So, which stock has greater upside potential? According to Zacks Equity Research, Dell Technologies has a Zacks Rank #2 (Buy) and an expected long-term growth rate of 15%. The company's strong presence in the data storage and management market, combined with its aggressive expansion into AI-enabled server technology, make it an attractive investment option.

Hewlett Packard Enterprise, on the other hand, has a Zacks Rank #3 (Hold) and an expected long-term growth rate of 10%. While the company has made significant progress in developing its AI-powered server technology, its growth prospects may be limited by its relatively smaller presence in the data storage and management market.

In conclusion, while both Dell Technologies and Hewlett Packard Enterprise have significant upside potential, Dell's stronger presence in the data storage and management market, combined with its aggressive expansion into AI-enabled server technology, make it the more attractive investment option. However, investors should note that the AI server market is highly competitive, and both companies will need to continue to innovate and invest in order to stay ahead of the curve.