Dell and Super Micro shares on the rise thanks to collaboration with Elon Musk and xAI!
Shares of Dell $DELL and Super Micro Computer $SMCI-0.4% rose sharply in early trading on Thursday after xAI founder Elon Musk announced that the companies would supply hardware for his artificial intelligence supercomputer startup.
Dell
DELL
Super Micro Computer
SMCI📊 These moves show the growing enthusiasm Wall Street for AI. Investors are flocking to AI companies, whether it's developing apps or making chips or servers.
✅ Shares of Dell rose as much as 5 %, while Super Micro is up nearly 9 %, but then wrote those gains back down. Dell CEO Michael Dell said that together with Nvidia, they are building a Dell AI factory that will power Grok for xAI.
🤖 Musk clarified that Dell will be assembling half of the racks for the supercomputer, while the rest will go to Super Micro. Investors reacted quickly and vigorously to Wednesday's announcement, even though markets were down due to the holiday Juneteenth closed.
🏢 Dell and Super Micro are actively expanding their activities in the AI. Super Micro recently announced the expansion of its facilities in Silicon Valley, while Dell reports a doubling of revenue from AI servers from the previous quarter.
🌟 Elon Musk is steering his startup toward leadership in AI, facing competition from tech giants like Microsoft a Alphabet. xAI recently acquired $6 billion in Series B funding and achieved a valuation 24 billion dollars.
📱 Apple also joins AI race. At the conference Worldwide Developers Conference introduced the platform Apple Intelligence and other exciting new features, marking a major shift in the company's strategy.
Do you see an opportunity in AI-focused stocks, or do you expect a major correction at the moment?
Well, it looks like Dell is going to do well. The company is definitely doing much better than $HPQ-0.7%.
Dell was buying Buffett too, right? That's a cool guy😁