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Though Nvidia has been growing at a tremendous pace, investors may be looking for alternative ways to capitalize on the growing adoption of AI. These two companies are on track to take advantage of lucrative AI-focused markets that could help them clock stronger growth and deliver more upside.

Dell Technologies (DELL) and Super Micro Computer (SMCI), or Supermicro, stand to benefit from soaring demand for generative artificial intelligence (AI) servers, according to Mizuho analysts.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

Analyst Vijay Rakesh initiated coverage of Dell with an Outperform rating and a $135 price target.

Dell stock has outperformed Super Micro stock recently, closing the valuation bifurcation between them. Dell's diversified ISG portfolio potentially helps to mitigate margin pressure in AI-optimized servers, underscoring its diversification. Dell benefits from core server refresh cycles and increased AI adoption, bolstering investor sentiments about its growth prospects.

Artificial-intelligence-focused chip makers are expected to grow briskly. But artificial intelligence requires servers, memory, and more -- so consider other stocks, too.

The Nasdaq 100 closed higher by around 0.5% during Friday's session. Investors, meanwhile, focused on some notable insider trades.

The strong demand for AI chips helped Nvidia raise its quarterly dividend by 150%. Investors can cash in on surging demand for AI servers with Dell stock, which also pays an above-average dividend yield of 1.68%.

Big market-cap stocks like Workday and Apollo Global Management top the list of possible admissions. Coinbase Global, Trade Desk, and Ferguson Enterprises have a shot too.

Dell Technologies (DELL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Though Nvidia's stock price has retreated from its recent highs, its valuation remains pricey. Dell has been generating strong results of late, and its growth rate could accelerate in the near future.

Dell Technologies Inc. remains a strong investment due to its positioning in the growing AI market and upcoming PC refresh cycle. Positive news and analyst ratings, coupled with Dell's focus on AI and efficiency, suggest significant undervaluation and potential for growth. Dell's Q3 and Q4 outlooks are promising, with expected revenue growth driven by AI server demand and potential Nvidia Blackwell shipments.

Dell plans further workforce cuts and limits external hiring through February 2025. Dell is taking measures to minimize spending and to adapt to an AI world.

Dell Technologies Inc. (NYSE:DELL ) Goldman Sachs Communacopia + Technology Conference September 10, 2024 6:45 PM ET Company Participants Jeff Clarke - Vice Chairman and Chief Operating Officer Conference Call Participants Mike Ng - Goldman Sachs Mike Ng Great. Thank you, everybody, for joining the session.

Super Micro Computer, Inc.'s SMCI shares have seen a meteoric rise over the past three financial years due to increased demand for artificial intelligence (AI) chips. At the beginning of the year, the SMCI stock even outperformed Wall Street darling semiconductor stock NVIDIA Corporation NVDA, which helped Super Micro get a position in the S&P 500 index in mid-March (read more: NVIDIA Wipes Out $400B in Value: Buy, Hold, or Sell NVDA Stock?

Dell Technologies' stock has rebounded from its recent low, driven by strong earnings and AI enterprise growth, making it a solid investment. Dell's re-entry into the S&P 500 and robust sales growth position it for multiple expansion and a higher stock price. Dell's forward P/E ratio is undervalued at below 12, with the potential to reach 15-17, implying a stock price of $150-$170.

Shares of Palantir Technologies (NYSE: PLTR) and Dell Technologies (NYSE: DELL) are rallying on news they'll be joining the S&P 500 later this month. S&P Global, which runs the index, says the tech giants, along with insurance provider Erie Indemnity (NASD: ERIE), will be added before the start of trading on September 23.

Tech stocks were in focus Monday on news Palantir and Dell are two of the S&P 500's newest members.

Although DELL's cheap valuation is attractive, contracting gross margin and weakness in consumer PC shipment are near-term headwinds.

Dell Inc. (NASDAQ:DELL) shares added almost 5% on Monday after it was revealed the technology company will be added to the S&P 500 as part of its quarterly rebalance.  Also being added are Palantir Technologies Inc (NYSE:PLTR), which surged almost 13% on the news, and Erie Indemnity, replacing American Airlines Group Inc (NASDAQ:AAL, ETR:A1G), Etsy Inc (NASDAQ:ETSY, ETR:3E2), and Bio-Rad Laboratories Inc (NYSE:BIO).