Why the Biggest Winner of the AI Infrastructure Boom Isn't Who Wall Street Thinks

The artificial intelligence (AI) infrastructure boom isn't showing any signs of slowing down. Goldman Sachs estimates that the total outlay on AI infrastructure could grow from $765 billion in 2026 to a whopping $1.6 trillion in 2031.

There are several companies that investors can consider buying to capitalize on this massive boom over the next five years. From companies like Nvidia and Broadcom that design AI accelerator chips, to neocloud providers such as CoreWeave and Nebius that build AI data centers, to AI software vendors such as Palantir Technologies, investors are spoiled for choice when it comes to benefiting from this lucrative market.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

However, Dell Technologies (NYSE: DELL) is emerging as one of the biggest winners of the AI infrastructure boom. Let's see why that's the case.

Dell manufactures AI-optimized servers that are deployed in data centers to run AI workloads. These AI servers integrate AI accelerator chips, storage, networking, and cooling solutions, enabling hyperscalers and AI companies to run AI workloads efficiently in data centers.

This explains why Dell's AI servers are in tremendous demand. The company's AI revenue jumped by more than fourfold in the fourth quarter of fiscal 2026 (which ended on Jan. 30, 2026). The good news for Dell investors is that the company anticipates $50 billion in AI revenue in the current fiscal year, up 103% from the previous year.

Don't be surprised if Dell exceeds expectations. That's because the company reports phenomenal demand for its AI servers, as evidenced by the $34.1 billion worth of new AI orders it booked in fiscal Q4. Dell closed the previous fiscal year with an order backlog of $43 billion. That number could keep swelling, as Dell has the highest market share in AI servers.

ABI Research estimates that Dell accounted for a fifth of the AI server market in 2024. The research firm estimates that the AI server market could grow at an annual rate of 18% through 2030, reaching $524 billion in annual revenue by the end of the decade.

Dell is clearly growing faster than the end market, indicating that its share of this lucrative space is increasing. That's likely to translate into more upside for this AI stock going forward.

Dell stock has already jumped 68% in 2026. However, it isn't too late to buy the stock, as it still trades at an attractive 24 times earnings, a discount to the tech-laden Nasdaq-100 index's earnings multiple of 34. The forward earnings multiple of 16 is even more attractive. Moreover, the company is poised to clock robust earnings growth over the next three years.

Assuming Dell's bottom line indeed reaches $16.99 per share after three years, and it trades at even 30 times earnings at that time, its stock price could hit $510. That's a potential increase of 142% from current levels, suggesting investors shouldn't delay and should consider adding this AI stock to their portfolios.

Before you buy stock in Dell Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dell Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!*

Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

*Stock Advisor returns as of May 7, 2026.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, Goldman Sachs Group, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.

Why the Biggest Winner of the AI Infrastructure Boom Isn't Who Wall Street Thinks was originally published by The Motley Fool