Evercore ISI is flagging hardware and networking companies as likely beneficiaries heading into the April-quarter earnings cycle, naming Dell as its preferred stock among the group. In a note previewing results from Dell, HP Inc., Hewlett Packard Enterprise and NetApp, the firm pointed to resilient demand and rising average selling prices as potential drivers of upside across much of its coverage.
Evercore ISI wrote that "AI infrastructure and networking demand remain among the most durable areas of spend," a trend the firm attributes to stronger capital expenditures from hyperscalers and neoclouds plus ongoing enterprise spending on campus networking refreshes and data center modernization.
The research house specifically identified Dell and HPE as candidates to deliver positive surprises and to possibly lift full-year guidance. For Dell, Evercore highlighted the chance for AI server revenue to exceed expectations as incremental spending from neoclouds and enterprise AI projects materializes. HPE's case rests in part on networking contributions, with upside called out across Aruba and Juniper.
On the client-computing side, Evercore noted that near-term trends remain constructive. Citing IDC data, the firm said global PC shipments were roughly 3% higher year-on-year, and it added that rising average selling prices should provide an additional tailwind for vendors exposed to that market.
Storage vendors were discussed separately. Evercore described near-term enterprise spending on storage as solid but warned of margin pressure linked to memory-related costs. The note observed that storage suppliers have increased prices by more than 40% since the start of 2026, a move Evercore believes could translate into upside for both revenue and gross profit dollar estimates.
Looking beyond the immediate quarter, the firm identified a central debate for the second half of the year. That discussion centers on price elasticity and "what happens to demand in H2, especially as further waves of price increases are passed through." How end markets respond to continuing price hikes will be a key determinant of demand trajectories in the latter half of the year.
Implications
- Hardware and networking names may report better-than-expected results if AI infrastructure spending and networking refreshes hold up.
- PC vendors could benefit from shipment growth and higher average selling prices in the near term.
- Storage vendors may see revenue and gross profit dollars lift from price increases, even as margin pressure from memory costs remains a risk.