The demand for artificial intelligence (AI) in the enterprise sector is surging, yet its impact on the consumer PC market has yet to be felt significantly. Recent statistics indicate a drop in global PC shipments, plummeting from 341 million units in 2021 to just 241 million in 2023. However, a turnaround could be on the horizon as Microsoft plans to end support for Windows 10 next year. This shift is anticipated to encourage consumers to invest in next-generation PCs that are optimized for AI applications, creating a strong upgrade cycle in the industry. According to Gartner, AI-focused PCs are projected to constitute 43% of all shipments by 2025, a notable increase from 17% in 2024.
Investors looking to capitalize on this potential resurgence should consider two key stocks that stand to benefit from these industry shifts.
Micron Technology (NASDAQ: MU) is positioned favorably due to its dominance in memory and solid-state drives (SSDs). Recently, the company announced record revenue from its data-center segment, driven by robust demand for both traditional and AI-driven servers. With an uptick in AI-optimized PCs anticipated as Microsoft transitions to Windows 12, Micron is set to see an increase in demand for its memory and storage solutions. The growing need for more powerful PCs necessitating around 32 gigabytes of DRAM—compared to an average of just 12 GB in older models—means that Micron’s latest offerings will likely enjoy strong sales. Investors could seize this moment, especially as the stock has pulled back recently, presenting a buying opportunity. Analysts forecast a 42% increase in Micron’s earnings; if the share price aligns with its historical P/E ratio of 16, it could reach $204 soon, indicating a potential upside of 94%.
Meanwhile, Dell Technologies (NYSE: DELL) has also seen a year of impressive growth, although it recently traded 32% below its peak. The company presents a compelling dichotomy, where its server business thrives on the demand for AI technology, overshadowing a slight downturn in its PC segment, which saw client-solutions revenue fall by 4% year over year in Q2. Despite this, Dell is performing well overall, especially with its infrastructure products experiencing a staggering 38% increase in revenue. The company’s strong customer service reputation and customizable products make it a favorite among clients.
Dell anticipates a boost in its PC business with the upcoming refresh cycle as Windows transitions. With an addressable market for AI hardware and services valued at $174 billion and growing at a rate of 22% per year, Dell’s potential for growth in this sector is significant. Analysts predict a 19% earnings increase for the company in 2025, and if market conditions improve, the stock could see an upward valuation adjustment, making it an attractive investment for those focusing on long-term trends.
The landscape is changing rapidly with the rise of AI and emerging technologies creating fresh opportunities in the PC market. Those interested in taking advantage of these trends should keep Micron Technology and Dell Technologies on their radar, as both companies are well-positioned to capitalize on the coming shifts in consumer and enterprise needs.
Investors who feel they missed out on the chance to invest in technology stocks previously should take heart—there are still significant opportunities available. Companies like Micron and Dell are at the forefront of technological advancement and are likely to yield beneficial returns as they adapt to the evolving market landscape shaped by AI. As consumers increasingly rely on high-performance PCs, these investments may prove fruitful in the near term.
Staying informed about market changes and seizing strategic investment opportunities could lead to substantial financial gains in a market that is set to innovate and expand dramatically in the coming years.