Dell shares rise after Axelera AI unveils Europa inference processor
Dell's shares jumped about 5.8% on Tuesday, to $565.15, after Axelera AI unveiled its Europa inference processor, which is expected to feature in future Dell systems.
This move signals Dell is serious about growing its AI server business, and Supermicro systems are expected to use the same chip in future systems.
Axelera AI has over 600 customers
Axelera's technology is already used by more than 600 customers and has signed agreements worth tens of millions, with a possible $1.5 billion in future deals.
While that number isn't guaranteed cash yet, it shows why Dell sees this tech as a smart bet for its AI plans.
Axelera only 1.6% of Dell backlog
Dell's AI server unit is booming, with a massive $95 billion backlog and $16.4 billion in recent shipments.
Adding Axelera gives Dell more options beyond NVIDIA chips (which still dominate), but even if all goes perfectly for Axelera, it would only make up about 1.6% of Dell's current backlog, so it's a cool step forward rather than a game-changer right now.