Buy These 3 AI Infrastructure Stocks Before the Next Leg Up

Shares of top artificial intelligence (AI) stocks have sold off this year, as investors weigh economic uncertainty, geopolitical risks, and the sustainability of spending on AI infrastructure. But spending on AI data centers continues to grow, making the dip a buying opportunity.

Global spending on AI infrastructure is projected to nearly triple to $902 billion by 2029, according to Statista. This could make the sell-off in tech stocks just a temporary pullback before another leg up over the next few years. Here are three stocks to consider buying now.

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Dell Technologies

Dell (NYSE: DELL) is known to most consumers as a top PC brand, but it's also the world's top supplier of AI servers. Its server business is booming, driving double-digit revenue and earnings growth, and further gains in this market are not reflected in the stock's low forward earnings multiple.

Even amid a sluggish PC sales environment, robust growth in Dell's infrastructure solutions group (servers) pushed annual revenue to a record $113 billion last year, up 19% from the prior year. Strong margin performance drove an impressive 27% year-over-year increase in adjusted earnings per share.

Dell booked $64 billion in AI orders last year and entered the new year with a record $43 billion backlog. Its pipeline continues to grow as hyperscalers pour money into data centers. The Motley Fool's research shows that capital spending from top AI companies could grow about 50% to over $600 billion in 2026. This would certainly fuel more orders in Dell's server business.

Its competitive edge is based on execution and value-added services, including installation, cooling solutions, and other services, which can benefit its margins over time. With a low forward price-to-earnings multiple of 13.5, the stock appears undervalued, given analysts' estimates of 17% annualized earnings growth over the next few years.

Nebius Group

Nebius Group (NASDAQ: NBIS) is a rapidly expanding data center operator that builds AI-focused cloud platforms powered by thousands of graphics processing units (GPUs). It signs long-term contracts with large enterprises that need to expand their data center capacity. This is a high-growth market as top AI companies continue to run short on compute relative to demand.

Demand for compute capacity contributed to an 830% year-over-year increase in AI cloud revenue last quarter. This revenue also grew 63% over the previous quarter, indicating tremendous demand velocity.

Securing power is critical to building new data centers, and Nebius is making headway. It has expanded its active power capacity by 10 times over the last 18 months, yet it's still struggling to keep up with demand, as new capacity sells out before it even comes online. This is supporting longer contracts and higher selling prices.

Analysts expect the company's EBITDA (earnings before interest, taxes, depreciation, and amortization) to grow from $1.3 billion in 2026 to over $10 billion by 2028. While a slowdown in data center spending is a risk that could send the stock down, investors could also see significant gains if the company meets those expectations. On an enterprise value basis, the stock is trading at 21 times this year's EBITDA estimates.

Vertiv Holdings

Another critical piece of the puzzle in building AI data centers is power, which is benefiting Vertiv (NYSE: VRT). The company supplies high-performance power management systems, cooling, and racks.

Last year, organic sales grew 26% year over year to over $10 billion. Organic orders surged 81%, with its backlog hitting $15 billion, more than doubling from 2024. These numbers reflect customers locking in capacity early, suggesting more growth in 2026 and beyond.

The risk is that AI infrastructure spending will peak over the next few years, leading to weaker sales for Vertiv. However, Vertiv management believes the AI cycle is still in its early stages. Higher densities of GPUs in data centers are driving greater demand for cooling and power management solutions, as these powerful chips generate more heat. The company guided for approximately 28% organic sales growth in 2026, with adjusted earnings per share expected to increase roughly 43%.

The stock trades at a price-to-earnings multiple of 41 on this year's consensus earnings estimate. But with estimates calling for 31% annualized earnings growth over the next few years, earnings should catch up with its valuation, providing more upside.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vertiv. The Motley Fool has a disclosure policy.