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The analysts said total server shipments are seen returning to growth of approximately 15% YoY next year based on strong artificial intelligence server demand, which is “well above the industry average of 3-5% YoY.”
The latest supply chain check indicates that the higher-than-expected demand for AI servers has prompted Dell to request a significant production expansion of about 200% for AI server bottleneck components, the analysts noted.
“Due to AI chip supply constraints, Dell’s 2023 AI server shipments will be 10,000 to 15,000 units or less,” the analysts noted.
“However, shipments will increase significantly to 25,000 to 30,000 units or more in 2024,” they added. “With the momentum of AI servers, Dell’s conventional server shipments will also grow. Therefore, Dell currently expects total server shipments to resume growth to 15% YoY in 2024 (vs. a decline of about 10% YoY in 2023).”
Dell’s share price has rallied more than 2% so far on Monday.
