Cisco, Dell, CoreWeave: Evercore names eight beneficiaries of Nvidia's strong report

In a note to clients, investment bank Evercore ISI highlighted details of Nvidia's report that it assesses have implications for a number of other companies, CNBC reports.

The chipmaker's so-called sovereign business has more than tripled year-over-year, and Dell, Hewlett Packard Enterprise and Cisco will benefit, Evercore explains. The growth in orders from governments is a positive for these companies as providers of turnkey solutions for deploying AI clusters and turnkey data centers. Spending on network infrastructure is increasing at a rapid pace, and Evercore analyst expect this trend to continue. They named Arista Networks, Ciena and again Cisco as beneficiaries.

Nvidia also said its three generations of GPU processors in service are fully utilized. This is a good signal for cloud companies providing access to cloud computing for AI, such as CoreWeave, Evercore believes.

And with Nvidia's purchase commitments up more than $30 billion from a year ago, data center infrastructure vendors such as Amphenol Corporation and Vertiv are also benefiting, the analysts wrote.

In trading on Thursday, shares of Cisco Systems fell on February 26 by 1.3% amid a general sell-off of securities of the technology sector after the report of Nvidia. Quotes of Hewlett Packard Enterprise grew by 1%, Dell lost 1.6% of value. However, already in extended trading Dell quotes jumped more than 11% after the publication of quarterly reports, in which the company reported high demand for ready-made servers for AI. CoreWeave shares ended the day down 0.4% and collapsed 9% in the aftermarket on weak revenue guidance for the current quarter. Arista Networks shares lost 2% on Thursday, while Ciena lost 3.4%.

This article was AI-translated and verified by a human editor