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Dell shares pop on report of $5 billion deal for AI servers for Elon Musk's xAI

1. Dell shares rose on a report of $5 billion AI server deal. 2. Elon Musk's xAI may purchase Nvidia-equipped servers from Dell. 3. Dell reported $3.6 billion in AI server orders last November. 4. Dell's revenue for the last quarter was $24.37 billion, a 10% increase. 5. AI market demand is boosting revenue for many data center manufacturers.

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FAQ

Why Very Bullish?

An agreement with xAI would significantly boost Dell's revenue and visibility in AI.

How important is it?

The potential xAI deal emphasizes Dell's position in the emerging AI market, critical for growth.

Why Short Term?

The immediate interest can elevate Dell's stock in the upcoming quarters; analogous to past AI partnerships.

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