Wed Nov 06 15:10:00 UTC 2024: ## AI Fuels Growth for Dell and Amazon: Two Stocks to Watch

**By [Your Name], [Date]**

The artificial intelligence (AI) boom is driving strong growth for two tech giants: **Dell Technologies (DELL)** and **Amazon (AMZN)**.

Dell is benefiting from the surge in demand for **hyperscale data centers**, which are essential for processing the massive amounts of data required for AI. These centers are rapidly expanding, and Dell provides the infrastructure needed, including servers, storage, and software. The company sees a $91 billion market for AI infrastructure in 2025, which is expected to grow to $124 billion by 2027.

Dell’s recent financial performance reflects this trend. Server and networking sales soared 80% year-over-year last quarter, reaching $7.7 billion. While PC sales have been sluggish, Dell believes AI-ready computers could drive an upgrade cycle. The company is also committed to returning 80% of free cash flow to shareholders through dividends and stock buybacks, making it attractive to investors seeking value.

Meanwhile, **Amazon Web Services (AWS)**, Amazon’s cloud computing arm, is a major player in the AI race. AWS is the largest cloud data provider globally, and its revenue jumped in the past two quarters due to increased demand for cloud services. The segment’s operating income rose to 38% in the third quarter, a significant increase from the previous year. While Amazon’s overall business may be impacted by a potential slowdown in consumer spending, AWS’s strong growth is expected to mitigate any impact.

Both Dell and Amazon are strategically positioned to capitalize on the continued growth of AI. Dell’s focus on data center infrastructure and Amazon’s dominance in cloud computing make them compelling long-term investments.

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