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For much of the AI boom, investors focused on the obvious winners: Nvidia Corp. and memory-chip makers such as Micron Technology Inc..<\/p>\n
But a quieter trend has emerged over the past month.<\/p>\n
Some of the biggest stock-market winners have been a group of former 1990s technology titans once associated with PCs, networking equipment and enterprise hardware.<\/p>\n
Dell Technologies Inc. and\u00a0Hewlett Packard Enterprise Co. have roughly doubled in a month.<\/p>\n
Cisco Systems Inc. and International Business Machines Corp. have both risen by 40%.<\/p>\n
The common denominator is artificial intelligence infrastructure.<\/p>\n
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Don’t Miss:<\/p>\n
Dell Showed How Fast The Demand Is Compounding <\/p>\n
The market\u2019s sudden enthusiasm for Dell and HPE stems from a simple realization: building AI requires far more than chips.<\/p>\n
Think of the artificial intelligence boom as a new kind of factory. The chips from\u00a0Nvidia Corp. are the engines. But an engine alone moves nothing.<\/p>\n
It needs a chassis, wiring, cooling and a power supply. In the data center those are the servers, the storage and the networking that Dell, Hewlett Packard Enterprise and Cisco build.<\/p>\n
Dell\u2019s latest earnings report offered one of the clearest examples.<\/p>\n
Dell reported artificial intelligence server revenue of $16.1 billion last quarter, up 757% from a year earlier, alongside $24.4 billion in new orders.<\/p>\n
Dell also lifted its fiscal-year AI server revenue outlook to roughly $60 billion.<\/p>\n
Jordi Visser, head of AI Macro Nexus at 22V Research, described Dell as sitting at the center of the AI buildout because it serves hyperscalers, enterprises, sovereign customers and cloud providers while supplying servers, storage and networking infrastructure.<\/p>\n
Trending: Avoid the #1 Investing Mistake: How Your \u2018Safe’ Holdings Could Be Costing You Big Time<\/a><\/p>\n Hyperscaler capital spending has climbed from roughly $261 billion in 2024 to an estimated $805 billion this year, and 22V Research, citing Goldman Sachs, sees it approaching $1.6 trillion annually by 2031.<\/p>\n Visser highlighted that Dell\u2019s results show AI demand is expanding beyond Big Tech and into the broader economy.<\/p>\n The result has been a dramatic rerating of the stock.<\/p>\n HPE received a similar boost after investors began treating its AI server business as a major beneficiary of the next wave of enterprise AI spending.<\/p>\n Cisco Hasn\u2019t Participated To The Same Extent <\/p>\n While Cisco has rallied sharply, its gains remain far below Dell\u2019s and HPE\u2019s.<\/p>\n That raises the question: Is Cisco next?<\/p>\n Unlike Dell and HPE, Cisco is not primarily an AI server manufacturer. Instead, it occupies a different but equally important position in the AI ecosystem \u2014 networking.<\/p>\n At Cisco Live this week, the company unveiled a series of AI-focused announcements, including Cisco Cloud Control, a new AI-powered network management platform, new Silicon One-powered switches and routers, and additional security products designed to address AI-related cyber threats.<\/p>\n On Wednesday, Goldman Sachs analyst Michael Ng said the event reinforced Cisco\u2019s ability to benefit from customers investing in AI infrastructure and preparing for growing AI-driven security risks.<\/p>\n \u201cWe come away from Cisco Live with a deeper understanding of synergies across Cisco\u2019s end-to-end portfolio across networking, observability, and security as customers seek to invest in AI infrastructure, simplify network operations, and prepare for growing AI-driven security risks,\u201d the analyst said.<\/p>\n See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier.<\/a><\/p>\n Cisco said its next-generation G300 Silicon One chip will deliver roughly twice the speed of its predecessor and support future enterprise and hyperscale networking systems.<\/p>\n Goldman raised Cisco stock\u2019s 12-month price target from $116 to $125, while keeping a Neutral rating.<\/p>\n The Missing Piece: AI Networking <\/p>\n Investors have largely rewarded companies selling the \u201ccompute\u201d side of AI.<\/p>\n Networking has received less attention.<\/p>\n Dell\u2019s AI server revenue is already growing at triple-digit rates, whereas Cisco\u2019s AI exposure remains more indirect.<\/p>\n Still, market leadership during technology booms often broadens over time. In the 1990s, Dell, Cisco, IBM and HP were among the companies that built the physical infrastructure behind the internet era.<\/p>\n Three decades later, investors are increasingly asking whether those same infrastructure names could become some of the biggest beneficiaries of the AI era as well.<\/p>\n Photo: Shutterstock<\/p>\n Read Next: Think you’re saving enough for your kids? You might be dangerously off \u2014 see why<\/a><\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. 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