Shares of Dell Technologies Inc. (DELL.US) experienced significant early gains on Monday, rising more than 8% at the open and holding gains of over 6% to trade at $435.60.

The upward movement follows an announcement regarding a collaboration with Nvidia. On June 22nd, the two companies unveiled their joint "Dell AI Factory" initiative, focused on advancing supercomputing-grade infrastructure. This project aims to power next-generation high-performance computing (HPC) and artificial intelligence (AI) workloads, with applications in autonomous AI initiatives, engineering design workflows, and genomic science.

Supporting the positive sentiment, recent data from IDC indicates robust growth in the global server market. In the first quarter of 2026, the market's revenue reached $122.6 billion, representing a year-over-year increase of 30.4%. Within this market, Dell Technologies maintained a dominant position, capturing a 16.5% share. The company's revenue in this segment saw a remarkable year-over-year surge of 244.1%, solidifying its status as the top server OEM. This performance has allowed Dell to extend its lead over its closest competitor, Supermicro, by 8.9 percentage points.