Artificial Intelligence (AI) is changing the way people work and search for information online. Investors who buy the right stocks can earn attractive returns, and AI servers are a market to study for future winners.

Statista predicts that this market will grow tenfold to $430 billion by 2033. Here are two leading vendors that can help you take advantage of this opportunity.

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Dell Technologies (NYSE:DELL) is one of the leading players in the AI ​​server market. The stock has good upside potential in 2025 and beyond, thanks to strong tailwinds in the company’s infrastructure solutions business.

Revenue from its infrastructure solutions grew 38% year-over-year last quarter, driven by accelerating demand for AI servers. Dell is still involved in PCs, which account for half of its revenue, but the company’s infrastructure business will likely remain its fastest-growing business in the years to come.

Dell’s competitive advantage lies in its services and support to its customers. The company provides state-of-the-art air- and liquid-cooled servers, which are important for controlling the energy costs of running high-powered computing systems, in addition to networking and storage solutions.

Management sees a large addressable market for AI hardware and services, estimated at $174 billion, growing at more than 20% annually. This is an exciting opportunity for Dell’s infrastructure segment, which generates more than $40 billion in annual revenue.

While demand for AI servers will continue to grow at high rates, Dell is also seeing stronger demand for traditional servers, which recorded the third consecutive period of growth in the second quarter. The company could also see accelerated revenue growth in its client solutions segment as consumers move to new AI-optimized PCs launching in 2025.

Over the long term, management expects total revenue to grow at a compound annual rate of 3% to 4%, but Wall Street expects earnings to grow at a compound rate of 12%. , as growing demand for Dell’s AI solutions and services is expected to benefit margins. .

The stock is a bargain, trading at a forward price-to-earnings (P/E) ratio of just 12.8 on next year’s consensus earnings estimates.

All AI servers need graphics processing units (GPUs) to do their work, which represents huge potential for the leading GPU vendor. Nvidia (NASDAQ:NVDA).

This is one of the best stocks to benefit from AI infrastructure. Shares have soared over the past decade as demand for Nvidia’s GPUs has soared to support the construction of massive data centers that can house thousands of servers and individual GPUs. Rapid adoption of AI has accelerated its revenue growth to triple-digit rates over the last year.

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