Dell Technologies (DELL, Financial), a leading global server vendor, is set to begin shipping devices equipped with Nvidia's (NVDA) Blackwell AI accelerators, indicating a return to the chip's original production schedule. According to Arthur Lewis, President of Dell's Infrastructure Solutions Group, AI-focused servers with Blackwell chips will be delivered to select customers next month, with full availability expected in early 2025.
The launch of Nvidia's latest-generation semiconductors for AI has been highly anticipated by the industry and investors. Production was delayed earlier this year due to engineering challenges. In August, Nvidia's CFO, Colette Kress, announced changes to increase Blackwell chip production, with acceleration in manufacturing expected from November.
Dell is concentrating on expanding its high-performance server sales for AI applications. The company recently unveiled a new range of servers and infrastructure products. Investors are enthusiastic about Dell's new growth engine, driving its stock up by 68% this year. Dell's inclusion in the S&P 500 index last month has further buoyed investor sentiment.
Despite the positive outlook, some analysts express concerns about the profitability of Dell's AI products and its competitive position against rivals like Super Micro Computer (SMCI). Lewis emphasized Dell's unique advantage of strong customer relationships and extensive service and product offerings, which facilitated their early access to Nvidia chips. He also noted Nvidia CEO Jensen Huang's eagerness to deploy the chips swiftly, adding that "winning customers means winning quotas."
