Loop Capital Reports Apple’s ~$1 Billion Orders for NVIDIA’s GB300NVL72, Naming Super Micro Computer (SMCI) and Dell as Key Server Partners

This content is not intended as investment advice. The author does not hold any positions in the stocks referenced herein.

The Shift Toward NVIDIA’s GPUs: A Turning Point for Apple

Apple is making headlines by deviating from its traditional custom ASIC approach to embrace NVIDIA’s superior commercial GPUs. This significant pivot is expected to bring considerable benefits to vendors like Super Micro Computer and Dell, as Apple scales up its operations in the realm of artificial intelligence (AI).

The hidden cost of in-house ASIC design is – time.

The reality is that $NVDA merchant silicon is so ahead for most AI workloads that you can’t afford to wait on the sidelines while you develop your own slightly improved and optimized ASIC design.https://t.co/mDeCVNGblh

— Chips & Wafers (@ChipsandWafers) March 25, 2025

Investing in AI Infrastructure

According to Loop Capital, Apple’s recent move involves a staggering investment of approximately $1 billion in NVIDIA’s GB300NVL72 servers. This order, which is predicted to encompass around 250 servers priced between $3.7 million and $4.0 million each, will predominantly benefit Super Micro Computer and Dell.

“AAPL [Apple] is in the process of placing orders for ~$1.0B of GB300NVL72’s (or ~250 servers at $3.7M – $4.0M each) comprised of both SMCI [Super Micro Computer] & DELL.”

AI and Machine Learning Strategy Reevaluation

Analysts speculate that this substantial purchase aligns with Apple’s strategy shift towards General AI (Gen AI) for its large language model (LLM) cluster. This change comes amid persistent concerns regarding Siri’s performance, which has led to a reevaluation of Apple’s reliance on traditional AI and machine learning technologies.

“It appears that our latest work could represent a shift in AAPL’s thinking towards using Gen AI vs AI/ML.”

Siri’s Struggles and Apple’s Response

Although Apple recently announced new features aimed at enhancing Siri’s personalization, the company acknowledged that these updates will take longer than anticipated to roll out. This acknowledgment is part of a broader strategy to enhance user interaction with its AI assistant.

“We’ve also been working on a more personalised Siri, giving it more awareness of your personal context, as well as the ability to take action for you within and across your apps. It’s going to take us longer than we thought to deliver on these features and we anticipate rolling them out in the coming year.”

Financial Implications and Market Reactions

This order represents a significant boon for Super Micro Computer and Dell, who are leading the market in AI server solutions. Notably, Super Micro Computer has shown impressive stock performance, boasting a year-to-date gain of around 40%.

However, recent market developments have prompted Goldman Sachs to adopt a more cautious stance towards Super Micro Computer’s short-term outlook. Analyst Michael Ng has downgraded the company’s rating from ‘Neutral’ to ‘Sell’, adjusting the price target from $40 to $32, indicating a more conservative approach moving forward.

Ng highlights concerns regarding the diminishing differentiation in AI server products amidst rising competition, suggesting a convergence of valuations among server original equipment manufacturers (OEMs) like Dell.

Source & Images