Prediction: This Artificial Intelligence (AI) Stock Could Ride Nvidia's "Golden Wave" Next

MaxtonBusiness2025-07-0475511

Key Points

  • Nvidia and other large tech companies are building AI factories, creating unprecedented demand.

  • Dell Technologies' AI server sales skyrocketed last year.

  • Dell's AI orders continue to flow in, creating a significant -- and growing -- backlog.

  • 10 stocks we like better than Dell Technologies ›

There will be many winners as infrastructure is built to support the huge and increasing computing power needed for artificial intelligence (AI) applications. Nvidia continues to pave the way and has already been a huge beneficiary thanks to its leading advanced chips, software, and engagement with developers.

Nvidia's revenue has soared from what was then a record $61 billion in fiscal 2024 to more than $130 billion in its fiscal year 2025, ended Jan. 26. That growth continues as sales in the first half of fiscal 2026 are expected to be approximately $90 billion. It's all about the company's data center segment, as companies -- as well as sovereign nations -- quickly invest in infrastructure to expand AI capabilities.

That infrastructure includes servers and cooling systems that are provided by Dell Technologies (NYSE: DELL). The company's revenue has also been soaring, and it is well positioned to ride AI's "golden wave" along with Nvidia.

Image source: Getty Images.

Nvidia's AI factories are filling Dell's backlog

Dell isn't a pure-play AI stock, but it has already seen benefits from the AI revolution. Revenue hasn't soared quite as much as it has for Nvidia, but Dell's Infrastructure Solutions Group saw sales hit a record $43.6 billion in fiscal 2025, up 29% year over year. Zoom in specifically to its AI server business, though, and the growth is more impressive. Server shipments generated nearly $10 billion, up over sixfold from $1.5 billion in fiscal year 2024.

Demand continued to grow in the company's fiscal 2026 first quarter, and the period ended on May 2 with a $14.4 billion AI backlog. Chief operating officer Jeff Clarke called the demand unprecedented, adding, "We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of [fiscal 2025]."

That's all because of the huge data centers and AI training factories being built by large growth companies as well as sovereign governments -- all of it supported by Nvidia and its powerful products. Meta Platforms, Amazon, Alphabet, and Microsoft collectively have plans to spend as much as $320 billion this year investing to expand AI capabilities.

Another group of tech companies is partnering with ChatGPT creator OpenAI for the Stargate Project, with another $500 billion in AI infrastructure investments planned over the next several years.

Story Continues

OpenAI has also started a program intending to help regions outside the U.S. launch large AI projects. Dell servers will likely be part of most of this development. It's why the stock has quickly rebounded from its April lows.

More reasons to own Dell

That growth is driving investors to Dell stock. But there are other reasons to own it, too. The company's Client Solutions personal computer segment is also integrating AI for commercial and retail clients. That segment provides a stable cash flow base and it generated more revenue than the Infrastructure Solutions group last year.

Management is returning some of that cash flow to shareholders. It increased its annual dividend by 18% for the current fiscal year, and its board of directors approved a $10 billion increase in its share repurchase authorization.

The company says it is committed to returning at least 80% of its adjusted free cash flow to shareholders. It also plans to raise its dividend at least 10% annually through fiscal year 2028. That shareholder-friendly approach should make investors feel good.

Yet surging demand and a large and growing backlog for its AI servers are what really make it a good time to buy Dell stock. It has more runway ahead to ride the golden wave of AI along with Nvidia.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Howard Smith has positions in Alphabet, Amazon, Dell Technologies, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Prediction: This Artificial Intelligence (AI) Stock Could Ride Nvidia's "Golden Wave" Next was originally published by The Motley Fool

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Colter

This article predicts the AI stock to be a major beneficiary, riding Nvidia's golden wave of progress and technological breakthrough in artificial intelligence.

2025-07-06 22:41:31 reply
Benton

The projected rise of this AI stock seems set to capitalize on Nvidia's 'golden wave', positioning it as a promising investment amid the surge in artificial intelligence adoption.

2025-07-06 22:41:46 reply
Forrest

Tacking the rise of Nvidia's 'golden wave', this AI stock looks poised to surge with unmatched potential, catering effectively for artificial intelligence advancements and applications across diverse industries.

2025-07-08 00:16:15 reply
Beau

Nvidia's revolutionary AI technologies are propelling the company to ride a 'golden wave,' presenting an unparalleled opportunity for investors and fostering rapid growth in its shares through advancing artificial intelligence integration across industries.

2025-07-08 00:16:30 reply
Kania

Exciting times ahead as this AI stock could leverage Nvidia's 'golden wave,' predicting a surge in performance and growth potential.

2025-07-08 00:16:45 reply
Flavian

The article about AI stocks hints at Nvidia's potential to ride the 'golden wave', evoking excitement for investors hoping their bet on this tech giant will payoff in a post-pandemic digital surge.

2025-07-12 14:19:58 reply
Croy

Excitingly, thepredicted rise for this artificial intelligence company aligns with Nvidia'sacclaimed 'golden wave', suggesting a promising future as both industries convergeemphasizing AI-driven innovations maximally benefitting performance and efficiency.

2025-07-12 14:20:13 reply
Halo

A promising gamble on the AI stock market to watch out for: Nvidia's golden wave might just propel this innovative company into unforeseen success and returns.

2025-07-12 14:20:27 reply
Alfredo

The prediction underscores the potential for businesses centered around Nvidia's AI technology to ride a significant wave of growth, cementing their position at the forefront of artificial intelligence trends.

2025-07-18 07:20:52 reply
Noah

With Nvidia's 'golden wave', AI-based companies are poised to ride a significant growth surge, particularly those utilizing the company’S cutting edge technologies for training and deployment of deep learning models.

2025-07-18 07:21:07 reply
Quentin

Nvidia's groundswell in the realm of artificial intelligence, with its dominance over GPU optimization for deep learning applications and expanding AI hardware solutions portfolio presents an irresistible 'golden wave', setting this specific AI stock up to ride a tidal surge towards growth.

2025-07-18 07:21:23 reply

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