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Stocks that are part of the artificial intelligence (AI) race have delivered market-thumping returns to shareholders in the last 18 months. Since the start of 2023, shares of tech giants such as Dell (DELL) and Super Micro Computer (SMCI) have risen by 907% and 242%, respectively, outpacing the broader markets by a wide margin.
Shares of both companies got another shot in the arm last week, after Tesla (TSLA) CEO Elon Musk confirmed that his AI company, xAI, would use technology from Dell and Super Micro Computer. In a post on X, formerly known as Twitter, Musk stated that Dell is “assembling half of the racks that are going into the supercomputer that xAI is building,” and added that Super Micro would be the other supplier.