InvestorPlace - Stock Market News, Stock Advice & Trading Tips The AI wars are heating up, and Elon Musk has joined the race. Grok, X’s chatbot, is his answer to OpenAI’s ChatGPT. While Musk has long touted Tesla (NASDAQ:TSLA ) as one of the top AI stocks due to its self-driving technology, his attention has turned to Grok. In May, xAI announced a series B round raising $6 billion from Saudi Arabian Prince Al Waleed bin Talal, Andreessen Horowitz, Sequoia Capital and others. These funds allow xAI to fast-track its upgrade of Grok to keep up with ChatGPT and Anthropic’s Claude. A portion of these funds will go toward employees. With Big Tech companies and startups scrambling for competent engineers, AI talent wars have escalated. It’s now common for compensation for a top AI engineer to exceed $1 million annually. The remaining funds will go toward infrastructure, such as AI servers, storage and networking. These AI stocks are key suppliers to the xAI Grok project. They will benefit from the increase in capital expenditure by xAI. Nvidia (NVDA) Year-to-date (YTD), Super Micro Computer (NASDAQ:SMCI ) has been one of the top AI stocks. Although the stock has retreated from its highs above $ 1,200, it is still up by 196% YTD as of this writing. And the gains are far from over since it will enjoy a boost from Grok. As mentioned earlier, xAI is building an AI factory to power the latest Grok model. Super Micro Computer is one of the AI stocks that are well-positioned to profit. Particularly, it has a competitive advantage in AI servers with liquid cooling at scale and can ship over 2,000 AI server racks a month. So, it came as no surprise when CNBC reported that Super Micro Computer would also supply xAI. It can customize AI server racks to application-specific platforms in accordance with customer needs. Furthermore, its fully functional plug-and-play systems are what xAI needs to scale Grok’s training quickly. Considering this revenue boost, Super Micro Computer isn’t done with its rally and has more upside. Bank of America (NYSE:BAC ) expects the company to profit from strong demand from tier-2 cloud service providers and sovereigns. Their $1,090 price target presents over 25% from current levels. On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia. More From InvestorPlace