2 AI Stocks That Could Soar in 2025
It's no coincidence that the stocks of companies involved in artificial intelligence (AI) have led the bull market over the past year. Spending on AI technology is ramping up in the data center market and continues to look like a profitable opportunity for investors. Here are two key suppliers of mission-critical AI infrastructure that are poised to deliver excellent returns in 2025 and beyond.
Dell Technologies (NYSE: DELL) is more than just a PC brand. It is a major player in helping companies modernize their information technology infrastructure, including servers optimized for AI. The stock has been a terrific performer over the last few years but still trades at a valuation that is compelling relative to long-term growth forecasts.
The stock has historically traded at a low price-to-earnings multiple, which is consistent with companies dependent on a slow-growing PC market. But with Dell posting a jump in earnings per share of 86% year over year in the second quarter, the stock's P/E ratio has been increasing as Wall Street starts to price in many years of growth ahead in the server market.
Source Fool.com
