This Underrated Artificial Intelligence (AI) Stock Has Jumped 231% in 2026. Buy It Hand Over Fist Before It Becomes a Trillion-Dollar Company

Dell Technologies (DELL +2.21%) has been in sizzling form on the market in 2026, rising an incredible 231% as of this writing. The tech giant's incredible rally can be attributed to a significant uptick in its fortunes, driven primarily by the artificial intelligence (AI)-fueled demand for its servers.

Dell stock received a major shot in the arm last month after releasing its fiscal 2027 first-quarter results (for the three months ended May 1). The company not only crushed expectations but also raised its full-year guidance due to the booming demand for its AI products.

You may now be wondering whether it is a good idea to buy this AI stock now, following its multibagger gains this year. The good news is that Dell remains a solid bet even after its red-hot rally. In fact, I won't be surprised to see it enter the trillion-dollar market-cap club and be counted among the world's largest companies.

Let's see why that may be the case.

Dell Technologies has two major catalysts that will fuel its long-term growth

Dell operates through two segments. The first is its infrastructure solutions group (ISG), through which it manufactures data center, networking, and storage products, including AI-optimized servers.

This segment has taken off in recent quarters. Dell's ISG revenue in fiscal Q1 stood at a record $29 billion, growing by 181% year over year. Its revenue from AI server sales jumped 757% year over year to $16.1 billion. Even traditional servers and networking equipment saw strong sales last quarter, with their revenue increasing by 92% to $8.5 billion.

It would be wrong to think that Dell's server business has peaked. That's because the size of the AI server market alone is expected to reach $1.24 trillion in 2030, according to Goldman Sachs. The investment bank had previously anticipated the AI server market would reach $961 billion in revenue, but it has significantly increased its forecast due to massive AI data center investments.

What's more, Goldman Sachs notes that the AI server market will see higher average selling prices (ASPs), alongside an increase in unit sales. This could pave the way for a solid increase in Dell's revenue and earnings. Also, sales of traditional servers are anticipated to reach $164 billion in 2030, up from the prior forecast of $105 billion. Dell expects AI server revenue of $60 billion in fiscal 2027, indicating significant room to grow given the size of the addressable market.

On the other hand, Dell's client solutions group (CSG) is also gaining solid traction. The company sells desktops, notebooks, workstations, and peripherals. The advent of AI has given this business a nice boost, with Dell's CSG revenue climbing 17% year over year to $14.6 billion in fiscal Q1. Dell anticipates a stronger revenue increase of 20% in this segment in the current quarter, which isn't surprising, as demand for generative AI PCs is picking up.

According to Gartner, AI PCs are expected to account for almost 55% of the overall PC market this year, up from 31% in 2025. The firm estimates that AI PCs will take over the PC market in 2029. This presents another solid opportunity for Dell, given that it is the third-largest PC vendor with a market share of 16.5%.

All this explains why Dell is now anticipating an increase of almost 50% in revenue in fiscal 2027 to $167 billion, based on the midpoint of its guidance range. Analysts, however, are even more bullish, and they expect Dell's solid growth momentum to continue beyond fiscal 2027.

Data by YCharts

Why a trillion-dollar market cap seems easily attainable

We have already seen that Dell is anticipating a solid revenue surge this year. Though analysts expect further growth in fiscal years 2028 and 2029, as shown in the previous chart, they anticipate a significant slowdown in the growth rate. However, the catalysts discussed in this article suggest that Dell's growth rate could easily exceed consensus expectations.

But even if we assume Dell grows conservatively and its revenue reaches $205 billion in fiscal 2029, its market cap could exceed $1.1 trillion within the next three years (assuming it trades at 5.5 times sales at that time, in line with the Nasdaq Composite index's multiple). That's 4x Dell's current market cap, which is why investors can still consider buying this growth stock hand over fist in anticipation of more upside.