Dell, Super Micro rise after Mizuho starts coverage of AI server makers
** Shares of AI server maker Dell Technologies DELL.N rise 2.3% to $118.08, while Super Micro Computer's SMCI.O shares up 1.3% at $454.75 premarket
** Brokerage Mizuho starts DELL with "outperform" rating and $135 PT and SMCI with "neutral" and $450 PT
** Brokerage believes DELL has more favorable payment agreements from suppliers
** Brokerage says AI server market is projected to be worth ~$406 bln by 2027; increasing competition is pressuring margins
** While SMCI has led the market with a head start from tight GPU supply, it is losing market share with DELL quickly gaining share by leveraging relationships as the overall server market leader, brokerage says
** Brokerage says SMCI's annual report delay could be manageable, but increasing competition, share loss and margin pressures could be bigger investor concerns
** Up to last close, DELL up ~51%, SMCI up ~58% this year
Reporting by Jaspreet Singh in Bengaluru
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