Dell Technologies shares rose in pre-market trading following Elon Musk’s denial of a rumored $52 billion server deal. The SpaceX CEO labeled reports of a massive AI server order with competitor Foxconn as fake news.
SpaceX historically relies on Dell and Super Micro as its primary server suppliers. A deal with Foxconn would have signaled a major competitive shift and a significant loss of potential business for Dell.
The denial eases investor concerns regarding Dell’s standing in the burgeoning AI infrastructure market. The stock recently experienced a pullback alongside other AI-related companies, making this news a positive catalyst for recovery.