Dell Stock 5% Up After $5B AI Deal with Elon Musk’s xAI, Proving Morgan Stanley Wrong
The Dell stock jumped around 5% higher today, after comments suggesting a major deal with Elon Musk’s xAi company on AI servers.
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Dell’s stock saw a significant surge after reports surfaced that Elon Musk’s AI startup, xAI, was in discussions to purchase $5 billion worth of AI servers from the hardware manufacturer. The stock climbed from below $110 to a high of $116 before pulling back slightly, ultimately closing at $114.32, marking a gain of $4.06 or 4% on the day.
The interest in Dell stems from xAI’s aggressive expansion in artificial intelligence. In December, xAI announced a $6 billion funding round, with reports from CNBC indicating that the startup was raising capital to acquire GPUs and other critical hardware needed to scale its AI operations. As a direct competitor to OpenAI, xAI’s efforts to secure high-performance computing resources highlight the growing demand for AI infrastructure. If Dell’s deal is finalized, Dell’s presence in the AI server market could be significantly boosted, and its role in the broader AI ecosystem could be strengthened.
Dell Stock Chart Daily –
Meanwhile, major US stock indices closed with mixed results as the trading week came to an end. The Dow Jones Industrial Average finished lower, reflecting some weakness in industrial and blue-chip stocks. The S&P 500 remained largely unchanged, showing little movement by the close, while the NASDAQ outperformed, ending the session higher as tech stocks, including Dell, benefited from renewed investor interest.
The rally in AI-related stocks, particularly Dell, underscores the continued enthusiasm for artificial intelligence and its supporting infrastructure. With xAI’s potential multi-billion-dollar acquisition of AI servers, Dell stands to gain a substantial foothold in this rapidly evolving sector. The broader market reaction reflects the ongoing focus on AI as a key driver of future growth, reinforcing its influence on market trends.
US Stock Market Close: Mixed Performance Across Major Indices
- Dow Jones Industrial Average: Declined 165.35 points (-0.37%), closing at 44,546.08.
- S&P 500: Slightly lower by 0.44 points (-0.01%), closing at 6,114.63, just four points shy of its all-time high of 6,118.
- NASDAQ: Gained 81.13 points (+0.41%), closing above 20,000 at 20,026.77.
- Russell 2000 (Small-Caps): Dropped 2.02 points (-0.10%), finishing at 2,279.98.
Weekly Performance Summary for Major Indices
Despite a mixed week, all major indices finished the week in positive territory:
- Dow Jones: +0.55% for the week.
- S&P 500: +1.47% weekly gain.
- NASDAQ: Led the gains, rising +2.58% over the week.
The S&P 500 remains within striking distance of a record high, indicating continued market resilience. The NASDAQ outperformed, supported by strong gains in tech stocks, while the Dow lagged, reflecting some rotation out of blue-chip names. The Russell 2000’s slight dip suggests that small-cap stocks remain under pressure. With markets ending the week on a positive note, investors will watch for upcoming economic data and Fed commentary for further direction.
S&P 500 Live Chart
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