Not Nvidia. Not Micron. This Is My Top AI Infrastructure Stock to Buy Right Now (Hint: It Can Double Within 3 Years)

Nvidia and Micron Technology are among the most important companies in the artificial intelligence (AI) infrastructure ecosystem, providing mission-critical chips that facilitate the training of large language models (LLMs) and help run inference workloads in data centers.

Nvidia dominates the AI data center accelerator market with an estimated 80% share, which explains why the company has been clocking terrific growth quarter after quarter. Micron, meanwhile, is benefiting from the strong demand for memory chips used by Nvidia and other chip designers to enable the rapid transfer of large data sets in AI data centers.

Importantly, both semiconductor stocks seem capable of delivering solid gains to investors over the long run, driven by their ability to sustain healthy growth rates amid booming demand for AI infrastructure. However, there is another AI infrastructure stock that's outperforming Nvidia and Micron stock this year -- Dell Technologies (NYSE:DELL).

Let's see why that has been the case.

Image source: The Motley Fool.

Strong AI server demand has supercharged Dell's growth

Dell stock has soared 316% this year, eclipsing the 256% surge in Micron stock and a 23% jump in Nvidia's shares. The booming demand for AI servers, which are used to mount chips designed and manufactured by Nvidia, Micron, and others, has been instrumental in driving Dell's impressive rally.

Fortune Business Insights estimates that the AI server market could grow from $262 billion in 2026 to $2.85 trillion in 2034 at a compound annual growth rate (CAGR) of nearly 35%. Dell is one of the leading players in this market, which explains why its latest quarterly results crushed Wall Street's expectations.

Dell released fiscal 2027 second-quarter results (for the quarter ended July 31) on Sept. 1. The company's quarterly revenue shot up 58% year over year to a record $47 billion. Dell's non-GAAP earnings-per-share growth was even more stellar at 203%, reaching a record $7.04 last quarter. Analysts would have settled for $4.92 in earnings per share on revenue of $44.9 billion.

Dell noted that it sold $16.4 billion worth of AI servers last quarter. Importantly, the company received a record $60.9 billion in AI server orders during the quarter, suggesting that its future revenue pipeline is expanding at a robust pace. It is also worth noting that Dell finished the quarter with a record AI order backlog of $95 billion.

Management also pointed out that its potential revenue pipeline is in "multiples of our backlog," which isn't surprising, given the tremendous long-term growth opportunity in AI servers. The company now expects its AI server revenue to increase 3x in fiscal 2027 to $74 billion. That's well above the overall AI server market's growth rate.

We have already seen that Fortune Business Insights anticipates the AI server market to clock $262 billion in revenue this year. Dell's AI server revenue forecast for this year suggests that it is on track to control 28% share of this market in 2026. More importantly, it could become a bigger player in the AI server market due to its sizable backlog.

Not surprisingly, analysts are now expecting stronger growth from Dell.

DELL Revenue Estimates for Current Fiscal Year data by YCharts

Robust growth and an attractive valuation suggest more upside for investors

Dell has increased its fiscal 2027 guidance. It now expects non-GAAP earnings per share of $25.50 this year, a terrific 148% jump over last year. The following chart suggests that Dell's earnings growth could slow down in fiscal 2028 before accelerating the following year.

DELL EPS Estimates for Current Fiscal Year data by YCharts

However, that's unlikely to be the case. Dell's earnings-per-share growth could be way stronger next year, thanks to the rapid growth of the AI server market and its substantial share of this space. So, don't be surprised to see analysts ramp up their earnings-per-share expectations.

The good part is that Dell trades at an attractive 28 times forward earnings despite its multibagger performance in 2026. That's almost in line with the tech-laden Nasdaq-100 index's forward earnings multiple of 24. It ideally deserves to trade at a premium owing to the triple-digit earnings growth it has been clocking, and its ability to outperform consensus expectations.

Assuming Dell's earnings per share reach $34.56 in fiscal 2029 and it trades at 30 times earnings, this AI stock could jump to $1,037. That's almost double its current stock price, though I won't be surprised to see Dell delivering bigger gains on the back of a potentially larger improvement in earnings.

So, investors looking to add a top AI infrastructure stock to their portfolios right now should take a closer look at Dell, as it is well-positioned to sustain its red-hot rally by capitalizing on the secular growth of the AI server market.

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