Important points
Shares of Super Micro Computer (SMCI), Dell (DELL) and other Nvidia (NVDA) partners gained on Thursday after the chipmaker reported third-quarter earnings that beat analysts’ expectations. The price soared on expectations that the price would rise.
Supermicro, which makes servers using Nvidia chips, saw its stock soar 15% on Thursday. Fellow OEM (original equipment manufacturer) partners Dell and Hewlett-Packard Enterprise (HPE) rose nearly 4% and 3%, respectively. Shares of Micron (MU), which provides memory solutions for AI chips to Nvidia, rose more than 4%.
Following Nvidia’s results, Citi analysts issued a “buy” rating and $160 price target on Dell, suggesting an upside of about 15% from the company’s Thursday closing price. . Analysts expect Dell could benefit from the expansion of the artificial intelligence market, especially after NVIDIA executives highlighted “Al’s strong traction in enterprise environments” in the company’s earnings call. He said he is doing so.
Nvidia also mentioned Dell and Supermicro during its earnings conference. Getting a boost could be important, especially for Supermicro, as the server maker has been plagued by delays in reporting and concerns about its accounting practices this year.
Other companies can’t stop talking about Nvidia, highlighting its growing influence
Another sign of Nvidia’s growing influence is that mentions of the chipmaker have surged in recent years on other companies’ earnings calls and other corporate events, according to recorded data compiled by AlphaSense.
According to AlphaSense, Nvidia has been mentioned in a whopping 2,204 earnings calls, company presentations, and events since 2019, with 251 mentions in the third quarter of the calendar year, compared to 161 mentions in the same period in 2023 and the same period last year. This is an increase from 60 cases. This data covers approximately 9,000 companies worldwide and does not include events or conference calls hosted by Nvidia itself.
