Prediction: The Sovereign AI Boom Could Create the Next $1 Trillion Tech Company

While major hyperscalers and artificial intelligence (AI) companies have been investing heavily in cloud computing infrastructure to meet the booming demand for AI applications, it is worth noting that governments around the globe are also investing in this technology.

Sovereign AI infrastructure is being built by countries to train AI models and run applications in their own data centers, helping keep sensitive data and information within their jurisdictions. Also, sovereign AI helps to train and deploy AI applications using proprietary models that support local languages and are sensitive to a country's culture.

Fortune Business Insights predicts that the size of the sovereign cloud market could jump from $155 billion last year to $1.13 trillion in 2034. Investors can capitalize on this terrific growth opportunity by investing in Dell Technologies (NYSE: DELL), whose server solutions are being deployed by sovereign customers.

In fact, it won't be surprising to see Dell entering the trillion-dollar market cap club due to the lucrative sovereign AI opportunity. Let's see why that may be the case.

Image source: The Motley Fool.

Dell is already making progress in the sovereign AI market

Dell manufactures general-purpose and AI-focused servers. The company was the leader in the AI server market in 2024 with an estimated market share of 20%, according to ABI Research. Importantly, Dell has been growing faster than the AI server market. Its AI server revenue grew by 2.5x in fiscal 2026 to $25 billion.

The company noted on the February earnings call that it ended fiscal 2026 with more than 4,000 customers, "with growth across neo clouds, sovereigns, and enterprise customers -- evidence that demand is broadening across all customer types." Dell is partnering with notable names such as Palantir Technologies and Nvidia to offer its hardware solutions to governments.

It emerged in January 2026 that Palantir will offer its generative AI software services to a U.K.-based company, and that its software stack will run on Dell's server platform equipped with Nvidia's Blackwell processors. Even better, Dell has been deploying sovereign AI infrastructure in countries such as Malaysia and South Korea as well.

So, it appears that Dell is poised to capitalize on the growth of the sovereign AI market. Additionally, the company's diversified customer base, which includes enterprises and cloud service providers, has helped it build a robust backlog. Dell received $64 billion worth of orders for AI servers in fiscal 2026, closing the year with a $43 billion order backlog.

Importantly, the company expects its AI server revenue to double in the current fiscal year to $50 billion. So, Dell's growing share of the AI server market puts it in a solid position to deliver robust growth and exceed Wall Street's expectations, which is why I think the company could easily join the trillion-dollar club.

Here's how this tech giant could be worth a trillion dollars

Dell anticipates 23% revenue growth in fiscal 2027 to $140 billion. However, analysts are expecting single-digit revenue growth from the company over the next two fiscal years.

Data by YCharts

However, don't be surprised if Dell outpaces consensus estimates, driven by the aggressive growth of its server business. But even if Dell's revenue grows in the single digits to $163 billion after three years and it trades at just 7 times sales (a slight discount to the U.S. tech sector's average sales multiple of 7.5), the company's market cap could exceed $1.1 trillion. Dell's current market cap is $192 billion.

With Dell trading at less than 2 times sales right now, investors should consider buying this AI stock hand over fist before it surges higher following 131% gains in 2026.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.