Dell and NVIDIA upgrade AI infrastructure for enterprise deployment

LAS VEGAS - Dell Technologies (NYSE: DELL), a prominent player in the Technology Hardware industry with a market capitalization of $78.24 billion and annual revenue of $95.57 billion, has announced significant enhancements to the Dell AI Factory with NVIDIA, aimed at assisting enterprises in accelerating the adoption of artificial intelligence (AI) and achieving faster results. The collaboration between Dell and NVIDIA focuses on providing full-stack enterprise AI solutions and managed services as part of their ongoing innovation efforts. According to InvestingPro data, Dell has demonstrated strong momentum with a 10.41% return over the past week, suggesting investor confidence in the company’s strategic initiatives.

The newly introduced infrastructure includes air-cooled and liquid-cooled Dell PowerEdge servers, designed to integrate seamlessly into existing data centers and support large-scale deployments. These servers are compatible with NVIDIA Blackwell Ultra GPUs, promising up to four times faster training for large language models. Additionally, the Dell PowerEdge XE9712, featuring NVIDIA’s efficiency-focused technology, is expected to deliver significant improvements in AI reasoning inference output and throughput.

In July 2025, Dell plans to offer the Dell PowerEdge XE7745 server with NVIDIA RTX Pro™ 6000 Blackwell Server Edition GPUs, catering to various AI use cases such as robotics and digital twins. The company also intends to support NVIDIA’s Vera CPU and Vera Rubin platform, providing speed and performance enhancements.

Dell’s networking portfolio expansion includes the Dell PowerSwitch SN5600 and SN2201 Ethernet switches, part of the NVIDIA Spectrum-X Ethernet networking platform, and NVIDIA Quantum-X800 InfiniBand switches. These switches are designed for high-density, low-latency operations and are backed by Dell ProSupport and Deployment Services.

The Dell AI Data Platform has been advanced to provide AI applications with continuous access to high-quality data. Innovations include Dell ObjectScale, which supports large-scale AI deployments, and a high-performance solution integrating Dell PowerScale, Project Lightning, and PowerEdge XE servers with NVIDIA’s NIXL Libraries.

Software updates from NVIDIA’s AI Enterprise platform will be available directly from Dell, offering businesses the tools to develop agentic workflows and accelerate AI outcomes. Red Hat OpenShift will also be available on the Dell AI Factory with NVIDIA, providing flexibility and security for AI deployments.

Dell has introduced new Managed Services for the Dell AI Factory with NVIDIA, which include 24x7 monitoring, reporting, version upgrades, and patching, aimed at simplifying AI operations for enterprises.

Michael Dell, chairman and CEO of Dell Technologies, emphasized the company’s mission to make AI more accessible for customers globally. Jensen Huang, founder and CEO of NVIDIA, highlighted the partnership’s role in serving AI factories across various sectors. With Dell’s strong financial health score of 2.45 (rated as FAIR by InvestingPro) and its upcoming earnings announcement on May 29, 2025, investors can access comprehensive analysis and 12+ additional ProTips through InvestingPro’s detailed research reports, which provide deep-dive analysis of 1,400+ top US stocks.

These developments are based on Dell’s analysis and NVIDIA’s claims, with performance projections subject to change. The information in this article is based on a press release statement. With Dell currently trading near its InvestingPro Fair Value and showing strong financial metrics, including a P/E ratio of 17.49 and projected earnings growth, investors seeking detailed valuation analysis and expert insights can explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Dell Technologies announced a $4 billion debt offering, consisting of senior notes with varying maturities and interest rates, aimed at enhancing its financial flexibility. The company plans to use the proceeds for general corporate purposes, including debt repayment. Additionally, Dell has unveiled updates to its server, storage, and data protection portfolios, with innovations designed to support data center modernization, enhance performance, and improve efficiency. These updates include new PowerEdge servers and advancements in PowerStore and PowerScale technologies, reflecting Dell’s commitment to addressing the growing demands of artificial intelligence and cybersecurity.

In terms of earnings forecasts, BofA Securities maintained a Buy rating on Dell with a $150 price target, projecting first-quarter results at the high end of guidance due to robust PC revenue. Analyst Wamsi Mohan raised the earnings per share estimate to $1.77, while noting potential challenges from tariffs affecting future operating margins. Meanwhile, Raymond James also raised Dell’s price target to $144, citing optimism in the company’s ability to navigate changes in AI and PC market dynamics. Mizuho Securities increased Dell’s price target to $145, maintaining an Outperform rating, and highlighted the company’s potential in the AI Server sector with a strong pipeline worth an estimated $30 billion. These developments underscore Dell’s strategic positioning in emerging technology trends and its focus on long-term growth.

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