October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsPC HealthRecommendedCrashes, freezes, slowdowns? Check your PC nowSpot repairable issues before they interrupt work.Check PCOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

Why Dell and Super Micro Shares Jumped on xAI’s AI Factory Reports

Dell said xAI would use PowerEdge XE9680 servers, while Elon Musk said Super Micro would also supply servers. The reported $3 billion value was conditional analyst math, not a disclosed contract.
From TheFinanceBase Team3 min to read

What’s actually slowing this PC down?

Pick the symptom - the matching free tool is one click away.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Dell and Super Micro shares rose on June 20, 2024, after announcements linked both companies to servers for xAI’s Grok. Dell CEO Michael Dell said Dell was building an “AI factory” with Nvidia to power Grok, and Elon Musk said Super Micro Computer would also provide servers. The reports did not disclose a signed contract value, a final split between suppliers, or a delivery schedule.

What Dell and Super Micro were reported to supply

Dell told Bloomberg that xAI would use its PowerEdge XE9680 servers. Michael Dell wrote, “We’re building a Dell AI factory with Nvidia to power Grok for xAI.” Musk said Super Micro would also provide servers. In the contemporaneous report, Super Micro had not immediately responded to a request for comment, so the report did not include a direct company confirmation from Super Micro.

The reported announcement established a link between the companies and xAI’s server buildout, but it did not spell out the final equipment configuration or how many servers each supplier would provide.

What the analyst estimate did—and did not—say

Bloomberg Intelligence analyst Woo Jin Ho estimated that Dell’s servers were likely to make up half the server volume, with the rest coming from Super Micro. That was an analyst assessment, not a disclosed allocation agreed by the companies.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
#1 Best Overall
Tecmojo 12U Open Frame Network Rack for IT & AV Gear, AV Rack Floor Standing or Wall Mounted,with 2 PCS 1U Rack Shelves & Mounting Hardware,Network Rack for 19" Networking,Audio and Video Device
  • 【Powerful Load-bearing】12U Network Rack Open Frame is constructed from durable cold rolled steel; Rack shelf supports enhance stability, wall-mounted capacity of 130lbs, the ground-mounted up to 260lbs
  • 【Considerate Designs】Open-frame layout, including a top panel adding space, anti-slip shelf stops fixing devices and compatible racks for stack and expansion to meet requirements of home server rack
  • 【Complete Accessories】A 12U open frame server rack, two ventilated shelves, four shelf stops, four velcro straps and a set of equipment mounting screws
  • 【Versatile Application】Ideal for space-efficient multi-device setups in warehouses, retail, classrooms, offices and more; Excellent choices as AV Rack/IT Rack
  • 【Effortless Setup】 Network Rack includes hardware, a comprehensive manual, mounting hole drilling template and an online assembly video to simplify setup

Ho also said that if the deployment were for Grok 3, which he said needed 100,000 Nvidia H100 GPUs, the deal might be worth $3 billion, assuming a price of $1 million per AI-server rack. The figure was a conditional scenario, not a reported contract amount. The contemporaneous report did not disclose final deal value, supplier shares, or a delivery timetable.

Why the stocks moved—and what the figures mean

The shares reacted during the June 20, 2024 trading session, when investors weighed the possibility of a large AI infrastructure project. Gulf News’ Bloomberg report said Dell was up about 1% at $150.63 at 10:56 a.m. in New York, after rising as much as 8.3% earlier. Super Micro was up 8.2% at $995.45 after an earlier jump of 10%. Nvidia had gained 2.5% to $138.94 at the time reported. These are historical intraday figures, not current share prices or returns over a full trading day.

Rank #2
VEVOR 6U Wall Mount Network Server Cabinet, 14.8'' Deep, Server Rack Cabinet Enclosure, 200 lbs Max. Ground-Mounted Load Capacity, with Locking Glass Door Side Panels, for IT Equipment, A/V Devices
  • Space Saving: Maximum depth: 14.8". Use the wall mount network cabinet to maximize available space for retail locations, classrooms, back offices, network cabinets, and other locations where space is limited.
  • Fast Heat Dissipation: The server cabinet is designed with vents to optimize airflow and avoid critical IT equipment overheating. Heat sink holes in the top, bottom, and rear panels are more conducive to heat dissipation.
  • Sturdy Construction: Robust welded frame construction for durability and long service life. With 100 lbs wall-mounted load capacity and 200 lbs ground-mounted load capacity, you can place multiple devices in the server rack cabinet as needed.
  • High Security: The locked glass door ensures the security of data and equipment. Wall mount rack enclosure server cabinet is ideal for use in public places such as offices, effectively protecting the security of your devices.
  • Hassle-free Installation: Fully adjustable square-hole mounting rails of the wall mount server cabinet facilitate device installation. Wiring holes on the top, bottom, and rear panels provide you with easy cable routing.

The prospect of substantial server demand offered a potential growth opportunity for the suppliers, while Nvidia’s chips were central to the proposed AI computing capacity. But the reported price action alone does not establish how the project affected any company’s later results or share performance.

What “AI factory” means in this story

In the June 2024 announcement, “AI factory” described infrastructure being assembled to power xAI’s Grok; the available report did not define a final xAI system design. Later vendor materials use the term more broadly:

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Rank #3
VEVOR 12U Open Frame Server Rack, 23-40 in Adjustable Depth, Free Standing or Wall Mount Network Server Rack, 4 Post AV Rack with Casters, Holds All Your Networking IT Equipment AV Gear Router Modem
  • Adjustable Depth: 23-40'' adjustable depth is used for servers and network equipment, ensuring enough space for AV equipment, components, and cabling, while allowing you to access ports and equipment from multiple sides.
  • Strong Load Capacity: Ground-Mounted Load Capacity: 500 lbs, Wall-Mounted Load Capacity: 150 lbs. The av rack is made of carbon steel for better weldability performance and can help save space while meeting your need to place multiple devices.
  • User-friendly Design: Ergonomic design makes the open frame av rack easier to use. The additional top panel is able to place other items with more available space. Roller design moves anywhere and anytime, is convenient, and is more energy-saving.
  • Complete Accessories: We provide the accessories you need, including 2 x Pallets, 145 x M5*10 Cross Head Screws, 4 x Casters, 4 x M10*50 Expansion Screws,10 x M6*12 Cage Nuts, 1 x Grounding Wire, 1 x User Manual.
  • Wide Application: The server rack wall mount maximizes the use of available space, suitable for retail venues, classrooms, offices, and other places where space is limited.
  • Dell: In an October 2024 announcement, Dell described its AI Factory as an enterprise portfolio spanning infrastructure, solutions, and services, including PowerEdge server options and deployment support. That later description provides context for Dell’s product language; it does not confirm xAI’s final configuration. Dell’s October 2024 announcement.
  • Supermicro: In an August 2025 white paper, Supermicro described Data Center Building Block Solutions for NVIDIA Enterprise AI Factory validated designs, including data-center design consultation, solution validation, and professional onsite deployment services. Supermicro said the approach could reduce typical deployment timelines from 12–18 months to as little as three months; this is a vendor claim about its offering, not a measured xAI project outcome. Supermicro’s white paper.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

What investors can take from the report

The news connected two server suppliers with a high-profile AI buildout and prompted an immediate market reaction. For investors, the key distinction is between the reported supplier involvement and the analyst’s projected scale: the former was attributed to Dell and Musk, while the possible half-and-half split and $3 billion value were estimates with explicit assumptions. The report does not establish a contract’s final economics or delivery progress.

The same article reported that xAI had raised $6 billion in venture capital funding in May 2024 at a pre-money valuation of $18 billion. That financing figure offers context for the scale of the company at the time, but it is not evidence that xAI committed $3 billion to these suppliers.

Rank #4
AC Infinity CLOUDPLATE T2, Rack Mount Fan 1U, Top Exhaust Airflow
  • An intelligent fan system designed for cooling audio video, DJ, server, network, and IT equipment racks.
  • Protects rack-mount equipment from overheating, performance issues, and shortened lifespans.
  • Programmable thermostat controller with automated speed control, alarm warnings, and backup memory.
  • Premium anodized aluminum construction with CNC-machined detailing for a professional appearance.
  • Size: 1U Rack Space | Design: Top Exhaust | Airflow: 60 to 300 CFM | Noise: 12 to 38 dBA | Bearings: Dual Ball

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase07 MAR 2625 minWhat Is a 457 Plan?
  2. The Money DeskBlogTheFinanceBase07 MAR 2621 minTime Value of Money: What It Is and How It Works
  3. The Money DeskBlogTheFinanceBase07 MAR 2627 minAre You Living in One of These Top 10 Most Expensive Cities to Retire?
Recommended PC Tool
Recommended PC Tool
Crashes, No Sound, or Screen Glitches?Free driver scan
PC Slower Than It Used to Be?Free scan - under a minute

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.