Missed Out On Dell Technologies' Red-Hot Rally? Here's Another Artificial Intelligence (AI) Infrastructure Stock to Buy Hand Over Fist Before It Becomes a Multibagger
Contract electronics manufacturer Jabil's growth rate is accelerating due to the increasing contribution from its AI-related businesses.
Missed Out On Dell Technologies' Red-Hot Rally? Here's Another Artificial Intelligence (AI) Infrastructure Stock to Buy Hand Over Fist Before It Becomes a Multibagger
Overview
Dell Technologies (NYSE: DELL) stock has shot up by a phenomenal 235% in 2026, as investors have been buying the stock hand over fist to capitalize on the booming demand for artificial intelligence (AI) servers.
Dell released its fiscal 2027 first-quarter results (for the three months ended May 1) on May 28, and it became evident that it is poised to witness significant acceleration in growth. Dell's revenue shot up 88% year over year to $43.8 billion, primarily driven by a 181% spike in its infrastructure solutions group (ISG) segment. This business benefited from the strong demand for Dell's AI-optimized servers, and it is likely to drive even stronger growth for the company in the long run.
Details
The good part is that it isn't too late to buy this AI stock. Dell trades at just 2 times sales, suggesting that it can become a multibagger if the market rewards it with a premium valuation due to its accelerating revenue growth. However, there's another underrated company -- Jabil (NYSE: JBL) -- that's benefiting from the massive investments in AI data centers and is as cheap as Dell.
Source
Originally published at www.fool.com.
