Yahoo Finance·2025-11-28 12:30Core Insights - Nvidia's quarterly report shows a 66% year-over-year increase in data center revenue, enhancing the investment outlook for related companies like Dell and HP [1][2] - The company is significantly involved in AI data center infrastructure, collaborating with OpenAI and Anthropic, indicating strong growth potential in the AI sector [2][3] Nvidia's Performance and AI Involvement - Nvidia is aiding OpenAI in establishing at least 10 gigawatts of data centers, which reflects its growing influence in AI infrastructure [2] - The partnership with Anthropic marks a positive sentiment for Nvidia's role in the AI ecosystem, as it will be the first time Anthropic utilizes Nvidia's infrastructure [2] Data Center Market Outlook - The current developments suggest that the AI sector is not in a bubble, with substantial infrastructure still needed for both existing and new AI-driven companies [3] - Companies like Dell and Hewlett-Packard are expected to experience significant growth due to increasing data center spending [3] Hewlett-Packard Enterprise (HPE) Stock Analysis - HPE's stock has risen nearly 80% from its April lows but has underperformed over the past year with a -4% return, compared to the S&P 500's 12% [5] - HPE's valuation metrics show it as a more attractive investment compared to Dell, with a FY26 PE of 11.11x versus Dell's 13.33x [6] Financial Metrics Comparison - HPE's forward revenue growth of 11.84% surpasses Dell's 10.33%, and HPE's gross margins of 29.88% are better than Dell's 21.26% [7] - HPE offers a dividend yield of 2.43%, which is higher than Dell's 1.67%, providing additional appeal to investors concerned about market volatility [7]