This Overlooked AI Infrastructure Stock Could Be 2026's Biggest Winner

There's no denying that a slew of artificial intelligence stocks are suddenly on the defensive. Shares of cloud computing powerhouse Amazon are down 14% just since the end of last month. Microsoft's budding recovery effort was recently upended as well. Worries of a bigger reckoning are firming up, and understandably so.

There's one name in the artificial intelligence business, however, that may perform very well this year, even if most other AI stocks hit a wall. That's Dell Technologies (NYSE: DELL). Yes, that Dell.

Dell's simple turnkey solution

Plenty of people don't realize that the personal computer maker is in the business of artificial intelligence infrastructure. And for a long time, it wasn't.

Recognizing an opportunity to solve a largely ignored problem, however, in 2024, Dell launched an arm it simply calls the Dell AI Factory, offering corporations and their employees alike a way of utilizing the power of artificial intelligence without requiring AI expertise. And this business got a respectable start, making a measurable impact on that year's top and bottom lines.

Something significant changed last year, though. Following the introduction of AI-optimized servers that integrate with its other tech, Dell was able to offer "end-to-end AI infrastructure to support everything from edge inferencing on an AI PC to managing massive enterprise AI workloads in the data center."

Image source: Getty Images.

And as it turns out, this turnkey option is precisely what the market wanted, if not outright needed. Last year's infrastructure solutions revenue soared 40% to a record-breaking $60.8 billion, led by a surge in sales of artificial intelligence-optimized servers -- growth that persisted and even accelerated in Q1 of this year, when the company reported year-over-year revenue growth of 88%. Indeed, its AI server backlog now stands at $51.3 billion, well up from $43 billion just three months earlier.

What gives? Dell is undoubtedly leveraging its well-respected name within the business computing world. Mostly, though, it's institutional customers like that these AI-optimized servers easily integrate with other Dell-made solutions, and increasingly institutions appreciate the option of moving away from the public cloud and toward private, on-prem infrastructure, which is cheaper in the long run.

Enough value, resiliency

It's a compelling story for anyone looking for their next great artificial intelligence pick and, now, the AI industry's most resilient stocks. But much of whatever outsize performance this ticker is going to dole out for the year may already be in place. Dell shares are up more than 300% just since the end of last year. It could simply move sideways from here and still be one of 2026's top performers.

Nevertheless, keep this unexpected AI infrastructure name on your watch list. Priced at only 20 times next year's expected per-share profit of $22.13 (up 20% from this year's projection), the value already in place here is not only likely to bring a quick end to any pullbacks but also means there should be upside ahead even from its current price.

But the possibility of a broader reckoning for all artificial intelligence stocks? It's nothing to dismiss. It's arguable, however, that Dell's simple, cost-effective AI solutions may be relatively immune to such a headwind. After all, the world's still going to need this tech, even if it needs less of it than initially envisioned.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool has a disclosure policy.