Dell, Hewlett Packard, Super Micro Set To Benefit From Nvidia's AI Chip Ramp

JPMorgan analyst Samik Chatterjee on Thursday noted that Nvidia Corp's NVDA first-quarter reported revenue tracked modestly ahead of consensus. In contrast, the fiscal second-quarter of 2025 revenue outlook tracked largely in line with consensus.

Total revenues grew +12% Q/Q and +69% Y/Y, tracking to $44.1 billion in the fiscal first-quarter of 2026 (versus consensus of $43.3 billion and guidance of $42.1 billion-$43.9 billion).

Datacenter revenue tracks to $39.1 billion (+10% Q/Q and +73% Y/Y), including Compute revenue of $34.2 billion (+5% Q/Q and +76% Y/Y) and Networking revenue of $5.0 billion (+64% Q/Q and +56% Y/Y), the analyst noted.

Sequential growth in Data Center Compute revenues was led by a robust ramp in Blackwell, which tracked to 70% of Compute revenues (implying $24 billion in the fiscal first quarter of 2026 versus $11 billion in the fiscal fourth quarter of 2025). This suggests almost a -50% Q/Q moderation in the rest of the computing business as the company practically completed the transition from Hopper to Blackwell during the quarter, he noted.

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Chatterjee said the company highlighted that major hyperscalers are deploying NVL 72 racks at 1,000 racks per week and expects the deployment rate to ramp.

Nvidia forecasts total revenue to range between $44.1 billion and $45.9 billion for the fiscal second quarter of 2026 (versus consensus of $45.5 billion). This implies growth of +2% Q/Q and +50% Y/Y at the midpoint, despite $8 billion (versus $2.5 billion in fiscal first-quarter of 2026) of headwind from H20 export restrictions, as per the analyst.

However, he noted that both included a headwind from H20 export restrictions ($2.5 billion and $8.0 billion, respectively).

However, Data Center trends continue to be solid, particularly as the rate of Blackwell deployments continues to accelerate. Blackwell-based revenue expands by over twice on a Q/Q basis. Management suggests it is the "fastest ramp in company's history," Chatterjee said.

The analyst noted the solid Compute trends, particularly relative to the increasing supply of Blackwell-based products, is a positive read-through relative to Server OEMs, including Dell Technologies DELL and Hewlett Packard Enterprise Co HPE (as well as Super Micro Computer, SMCI) which has already reported) and their guidance for AI server revenues in the coming July quarter despite the mixed supply trends expected in the April quarter.

Price Actions: At last check on Thursday, DELL stock was down 0.57% at $113.12. HPE is up 0.14%, and SMCI is down 0.26%.

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