Investors looking for lucrative opportunities in the stock market are looking in the right corner. Tech stocks have significantly outperformed the broader market in recent years. For example, the Technology Select Sector SPDR ETF has nearly doubled the return of the S&P 500 since 2019. Here are two stocks with near-term growth catalysts that you should buy right now.
1. Dell Technologies
Dell Technologies (NYSE: DELL) is widely known as a PC brand, but it’s also a supplier of storage, networking, and artificial intelligence (AI) solutions for data centers. Strong demand for AI servers has fueled Dell’s business this year and sent the stock to new highs. The momentum in Dell’s server business makes the stock a compelling buy right now after the recent pullback.
Dell is still dependent on a sluggish PC market, where its client solutions group posted flat revenue growth in the fiscal first quarter of 2025, ended May 3. This business makes up most of Dell’s total revenue, but its infrastructure group, including servers, saw a robust 22% year-over-year increase, which lifted the company’s total revenue 6% to $22 billion.
Dell’s strong backlog of AI server orders suggests it is just getting started on this opportunity. The order backlog increased approximately 31% over the previous quarter to $3.8 billion, which shows AI servers quickly scaling into a significant revenue contributor.
The AI server market is still in the early innings. Companies will continue to rapidly increase their investment in AI, as most leaders believe it provides a competitive edge. Furthermore, Dell is serving a major tailwind with spending on information technology continuing to grow in proportion to the economy, which should benefit its entire business over the long term.
The reason the stock is down over the last month is that a higher sales mix coming from AI servers may pressure the company’s margins in the near term. Management expects adjusted earnings to be up approximately 7% this year — lower than its full-year revenue growth of approximately 8%. But the important factor is that AI…
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