Citi analyst Asiya Merchant feels the recent challenges for Super Micro Computer Inc. (SMCI, Financial), led by a lower-than-expected earnings and forecast, will benefit Dell Technologies (DELL, Financial) and HP Enterprise (HPE, Financial). While HP Enterprise gained 3.7% as experts projected both businesses might seize market share, Dell shares dropped 2% in premarket trade.
In a letter to clients, Citi analyst Asiya Merchant said that lower competition and more AI-related orders might help Dell, as well as, to a lesser degree, HP. Merchant also mentioned that although facing difficulties, Super Micro said in its results call that Nvidia Corp. (NVDA, Financial) had not changed its GPU allotment to consumers. Super Micro further mentioned that, in order to meet its high-cost inventory demands, it does not envisage challenges in increasing working capital to handle bigger Blackwell GPU purchases.
