Dell and Nvidia (NVDA) Team Up to Launch Faster AI Servers and New AI Laptop
Tech company Dell Technologies (DELL) has expanded its partnership with chipmaker Nvidia (NVDA) in order to launch new AI-focused products that are designed to make artificial intelligence easier and faster for businesses to use. Indeed, at its annual conference, Dell revealed new servers powered by Nvidia's latest Blackwell Ultra chips that can train AI models up to four times faster than previous versions. They come in both air-cooled and liquid-cooled models and can support up to 192 Blackwell chips, or even up to 256 chips if customized.
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Dell also introduced the Dell AI Factory with Nvidia, which is a platform that is meant to help businesses manage the entire AI process, from building and training models to using them. Dell CEO Michael Dell said that the goal is to bring AI to more people and make it easier to use. Separately, Nvidia CEO Jensen Huang added that these 'AI factories' are key to powering industries like healthcare, finance, and manufacturing, and that Dell now offers one of the widest selections of AI systems.
In addition to servers, Dell launched a new 'Pro Max Plus' laptop designed for AI development. It includes a neural processing unit that lets engineers run large AI models directly on the laptop without needing cloud access. Dell also plans to support Nvidia's future Vera Rubin chips, which will replace the current Grace CPUs. While demand for AI servers is strong, Dell and others like Super Micro (SMCI) have seen pressure on profits because of high costs and global economic uncertainty. As a result, to keep profits steady, Dell will focus more on selling networking and storage products alongside its AI systems.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that NVDA stock has more room to run than DELL. In fact, NVDA's price target of $164.51 per share implies almost 22% upside versus DELL's 14.8%.
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