Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) are rising in premarket trading on Thursday amid a positive catalyst.
Tesla CEO Elon Musk, who has set up a separate AI venture going by the name xAI.com, said in a post on X that computer and peripherals maker Dell Technologies, Inc. (NYSE:DELL) is "assembling half of the racks that are going into the supercomputer that xAI is building."
When one of his followers probed as to which company would be doing the other half, the billionaire confirmed it as Super Micro Computer.
SMC
— Elon Musk (@elonmusk) June 19, 2024
The San Jose, California-based AI server manufacturer's shares have been on a tear since the start of the AI revolution in early 2023. Following its quarterly results in early May, fund manager Louis Navellier said the company is dominating liquid-cooled AI chips in data centers, which are getting faster all the time. "The stock is a great pullback on any dip and remains an outstanding buy," he said.
In premarket, the stock climbed 3.27% to $950.05, according to Benzinga Pro data.
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