JPMorgan, in a report released on Thursday, assessed the impact of NVIDIA’s (NASDAQ:NVDA) recent quarterly financial performance and future revenue forecasts on the broader computer hardware and data networking industry.
NVIDIA’s strong financial performance in the first quarter of fiscal year 2025, supported by significant investments in AI infrastructure by both cloud service providers and enterprise customers, and a positive revenue outlook for the second quarter of fiscal year 2025, indicate a favorable trend for multiple businesses.
JPMorgan suggests that companies involved in data processing hardware and fiber optic component manufacturing, such as Dell Technologies (DELL), Super Micro Computer (SMCI), HP Enterprise (HPE), Coherent, Inc. (COHR), Fabrinet (FN), and Lumentum Holdings (LITE), are likely to experience growth due to NVIDIA’s advancements.
The anticipated increase in spending on AI infrastructure points to a growing need for sophisticated data processing solutions and fiber optic components, which could lead to potential expansion for these businesses.
However, the report also highlights potential competitive challenges for companies specializing in Ethernet data networking, particularly Arista Networks (ANET) and Cisco Systems (CSCO).
JPMorgan notes that NVIDIA’s announcement of pursuing
Source: investing.com
