Dell vs. HPE: Who’s Leading the AI Infrastructure Race?

Demand for artificial intelligence (AI) infrastructure is rapidly increasing, and Dell Technologies and Hewlett Packard Enterprise (HPE) are competing for leadership in this market. Both companies are taking different approaches to strengthen their positions.

Dell has seen significant growth in AI servers. In the first quarter of 2026, the company received $12.1 billion in AI orders, surpassing last year’s total AI shipments. Dell expects $20 billion in AI server deliveries by 2026. The company has a broad customer base and collaborates with high-profile clients, including CoreWeave and Elon Musk’s xAI project. Dell has introduced new AI servers powered by Nvidia’s Blackwell Ultra chips, featuring high GPU density. However, the company faces approximately $14.4 billion in AI server orders, raising potential supply and timing challenges. Shortages of high-GPU and high-bandwidth memory could impact Dell’s revenue.

HPE, on the other hand, focuses more on software integration in AI infrastructure. Through its GreenLake platform, the company offers private and hybrid AI solutions. Established in early 2024, HPE’s AI Systems division has become one of its fastest-growing segments. Recently, HPE generated $900 million in revenue from the AI Systems division, doubling the previous quarter. HPE’s partnership with Nvidia has resulted in “AI Factory” solutions, allowing customers to deploy high-performance AI clusters more easily and predictably. Additionally, HPE reached a $14 billion merger agreement with Juniper Networks, strengthening its position in AI and data center markets.

Analysts have set Dell’s price target at $160.50, indicating approximately 5% upside potential. Dell’s increasing AI server orders and extensive customer base may allow the company to achieve higher growth in the future. Both Dell and HPE are applying different strategies to strengthen their positions in the AI infrastructure market. Dell leads with scale and strategic partnerships but faces supply and margin challenges. HPE achieves rapid growth through software integration and strategic mergers. Investors should consider each company’s strategies and market conditions when making decisions.