Super Micro Computer shares rose in premarket trading on Monday. This followed Elon Musk's denial of a major AI server deal report.
Taiwan's Economic Daily had reported the deal. It claimed Musk's SpaceX placed a $52 billion order for Nvidia-powered AI servers from Foxconn.
Musk refuted the claim on social media platform X. He called the report "fake news."
The initial rumor posed a significant blow to Super Micro and Dell. Both companies supply servers to Musk's ventures.
The denial eased investor concerns. Investors worried a competitor had displaced Super Micro and Dell for the substantial contract.
Following Musk's post, Super Micro's stock gained approximately 0.8%, recovering from earlier declines.