AI Server Growth: Dell vs. HPE, Who's the Better Investment?

The AI server market is booming, with increasing demand for high-performance computing infrastructure and services. Two tech giants, Dell Technologies and Hewlett Packard Enterprise (HPE), are at the forefront of this growth. But which one is the better investment for AI server growth? Let's analyze their offerings, growth trajectories, and partnerships to make an informed decision.

Dell Technologies' AI Factory offers a broad AI portfolio, spanning client devices, servers, storage, data protection, and networking. The company's AI PCs, powered by Snapdragon processors, and AI-enabled storage solutions like PowerScale F910 are transforming productivity and collaboration. Furthermore, Dell's AI data protection solutions and networking advancements cater to the growing demands of AI workloads. Dell's AI Factory is complemented by strategic partnerships with Microsoft, Hugging Face, and Meta, providing customers with a wide range of AI solutions.

HPE, on the other hand, focuses on its ProLiant servers with Intel Xeon Scalable Processors and NVIDIA GPUs, leveraging AI frameworks like Generative AI, Vision AI, and Speech AI. HPE's Private Cloud AI, co-developed with NVIDIA, is a turnkey solution offering robust NVIDIA AI Enterprise software and accelerators. HPE's AI services and partnerships with NVIDIA, Meta, and other leading technology providers position it well in the AI server market.

Both Dell and HPE have reported strong AI-related order bookings and growth in their AI server segments. However, HPE's CEO Antonio Neri stated that the company exited fiscal year 2023 with $2.4 billion in AI orders, up from just $100 million at the start of the fiscal year. This significant growth, coupled with HPE's robust AI product portfolio and partnerships, suggests that the company may be the better investment for AI server growth.

In conclusion, while both Dell Technologies and HPE offer competitive AI server solutions, HPE's remarkable AI-related order growth and strong partnerships make it an attractive choice for investors seeking exposure to the booming AI server market. However, careful consideration of each company's specific offerings and potential risks is crucial before making an investment decision.