Elon Musk’s AI startup xAI has redirected its AI server orders from Supermicro to Dell, delivering a significant lift to Dell and its key suppliers, Inventec and Wistron, according to a report by .
“As Dell and other AI server vendors gain more market share, they may face stricter compliance requirements and oversight,” said Charlie Dai, VP, and principal analyst at Forrester. “Additionally, their supply chains could come under pressure to meet the increased demand resulting from the order shifts.”
Dell’s partners to benefit
Dell’s partners stand to benefit from this. Wistron, responsible for manufacturing motherboards and assembling Dell’s AI servers, is expanding production at its three Hsinchu facilities in Taiwan and its Mexico operations to meet growing demand.
Inventec — another major partner and one of Dell’s top three server assembly providers — is also positioned to capitalize on shifting orders as Supermicro loses its grip on the AI server market.
“Both Wistron and Inventec have been increasing their inventories throughout 2024, with Wistron holding over $5 billion in inventory and Inventec over $2 billion,” Park said. “Global demand for AI servers remains immense, but Wistron and Inventec appear well-positioned to support AI markets while sustaining strong demand.”
A key question now is how the proposed US tariffs by President-elect Donald Trump, which include a potential 10-20% levy on all foreign goods, could impact the AI server market and dampen demand, particularly for Taiwanese infrastructure components, Park noted.
Supermicro, Dell, Wistron, and Inventec have not responded to requests for comment.
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