3 AI Stocks That Can Beat the Nasdaq Composite in 2027
Key Points
Dell's AI-server racks continue to enjoy strong demand, resulting in a $95 billion backlog.
Silicon Motion Technology works with the largest memory chipmakers, putting it at the center of critical AI tailwinds.
Maxlinear's optical AI data center products fueled 55% year-over-year revenue growth and an optimistic forecast for the next two years.
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The artificial intelligence (AI) trade is becoming a bit more crowded. Chipmakers, hyperscalers, and neoclouds are on more people's radars, and that trend should continue as various companies post exceptional earnings.
However, a crowded market can still present opportunities to outperform the Nasdaq Composite (NASDAQINDEX: ^IXIC) in 2027. These three AI stocks have what it takes to extend their gains.
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1. Dell
Dell (NYSE: DELL) specializes in AI server racks that have gained momentum amid the data center build-out. The company concluded its fiscal 2027 second quarter (ended July 31) with a $95 billion backlog while delivering $47 billion in revenue. Dell raised its full-year guidance, citing accelerating AI momentum.
Not only is Dell a beneficiary of AI, but it also has solid financials. The company set aside $4.3 billion for share repurchases and dividends in its second quarter. Furthermore, the fastest-growing parts of Dell's business are also among the largest pieces of the company.
For instance, revenue at Dell's infrastructure solutions group, which includes AI data center products, is up 89% year over year. That part of the business delivered $31.8 billion of the company's $47 billion in total Q2 revenue. Dell's AI-optimized servers revenue reached $16.4 billion, more than half of the total infrastructure solutions group sales, which represents 100% year-over-year growth.
A key partnership with Nvidia suggests that the momentum will continue. Dell recently announced advances in its agentic AI products, with more than 6,500 enterprises adopting its Dell AI Factory. If agentic AI demand compounds, Dell's products geared toward this industry should continue to gain market share
2. Silicon Motion Technology
Silicon Motion Technology (NASDAQ: SIMO) is another top contender for outperforming the Nasdaq Composite in 2027. The growth stock has more than doubled this year, showing that it already has momentum. However, Silicon Motion Technology's performance has been sluggish since May, but emerging catalysts suggest that a rebound is on the way.
The company specializes in NAND flash controllers for solid-state drives and enterprise AI data centers. Its largest customers include Micron, Sandisk, and SK Hynix, among other chipmakers. As these customers sell more chips, the need for NAND flash controllers increases. Silicon Motion Technology is positioned at the center of that market, and it shows in financial results.
Silicon Motion Technology has been crushing forecasts for several quarters, and it did so again in the second quarter. Sales jumped 127% year over year, with its outlook indicating further growth in the next quarter. Revenue for Silicon Motion Technology's high-growth Ferri & Boot Drive segment rose roughly 1,700% year over year and more than doubled sequentially.
3. Maxlinear
Maxlinear (NASDAQ: MXL) specializes in optical AI data center products that help data move quickly throughout facilities. The mid-cap stock has more than tripled this year as more investors notice the opportunity.
The company told investors in its Q2 press release that it expects multiple years of "sustained growth, expanding profitability, and long-term value for our shareholders." The statement comes on the heels of 55% year-over-year revenue growth, but the main story is its AI infrastructure segment.
Revenue in that segment surged by 145% year over year, and as it becomes a larger portion of total revenue, Maxlinear's overall sales should continue to accelerate. Its Q3 forecast already points to this scenario, with the high end of $220 million in sales suggesting a 30% sequential growth rate.
This growth also comes as Maxlinear works on its margins. It reported an operating loss of $24.6 million in Q2 2025 and a net operating loss of only $4.2 million in its most recent quarter.
Net income was positive due to an income tax provision, but the company's progress in reducing operating losses could cause profits to scale quickly once it reaches breakeven. That development can spark another rally for this AI stock and put it ahead of the Nasdaq Composite in 2027.
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Marc Guberti has positions in Silicon Motion Technology. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy.
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