Dell Technologies Stock Is Rising Today: What's Going On?

Dell Technologies Inc DELL shares are trading higher Thursday after Elon Musk and Dell CEO Michael Dell announced the company is assembling half of the racks for an xAI supercomputer.

What To Know: In a post on X, Musk announced this week that Dell is assembling half of the racks that are going into the supercomputer that xAI is building.

The Dell CEO confirmed the announcement in an X post of his own on Wednesday.

“We're building a Dell AI factory with @nvidia to power @grok for @xai,” Dell said in the post.

Dell stock isn’t the only one getting a lift from the announcement on Thursday. Musk also announced that Super Micro Computer Inc SMCI would be providing servers for the planned supercomputer.

Both Dell and Super Micro have been focused on increasing server capacity to expand business from companies building and working with AI programs, per Bloomberg.

Dell just reported quarterly financial results at the end of May. The company said last month that revenue from its AI servers more than doubled in the quarter and backlog grew on demand strength for both AI and traditional servers.

“No company is better positioned than Dell to bring AI to the enterprise,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.

“Servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion.”

See Also: Super Micro Has Outrun Nvidia This Year: What’s Powering AI Server Maker’s Premarket Rally Today

DELL Price Action: Dell shares were up 5.12% at $156.78 at the time of publication, according to Benzinga Pro.

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