Shares of leading artificial intelligence (AI) stocks have experienced a sell-off this year, driven by economic uncertainty and concerns over AI infrastructure spending sustainability. However, global investment in AI infrastructure is projected to surge to $902 billion by 2029, presenting a potential buying opportunity for investors. Notably, companies like Dell Technologies, Nebius Group, and Vertiv Holdings are positioned to benefit significantly from this growth.

Dell Technologies stands out as the top supplier of AI servers, with a record $113 billion in annual revenue and a robust $64 billion in AI orders last year. Its low forward price-to-earnings multiple of 13.5 suggests the stock is undervalued given its projected 17% annual earnings growth. Meanwhile, Nebius Group has seen an 830% year-over-year increase in AI cloud revenue, indicating strong demand for its data center services. Lastly, Vertiv Holdings, which specializes in power management systems, reported a staggering 81% surge in organic orders, reflecting early customer commitment to future capacity.

The key takeaway for market professionals is that despite current volatility, the long-term growth trajectory of AI infrastructure spending could provide substantial opportunities, particularly in undervalued stocks like Dell and high-growth prospects like Nebius and Vertiv.

Source: fool.com