The AI infrastructure building boom is reshaping the fortunes of several established technology companies. This year, seven veteran tech firms—Dell, Nokia, Lenovo, Cisco, Intel, Texas Instruments, and Micron Technology—have seen their share prices surge by an average of 158%, collectively adding approximately $1.7 trillion in market value. Unlike AI-era stars such as Nvidia and Meta, the products from these companies are often viewed as "unexciting" hardware infrastructure. However, these long-overlooked industry stalwarts are now experiencing a demand inflection point, driven by the explosive expansion of AI data centers. Yan Taw Boon, a portfolio manager at Neuberger Berman, noted that about six months ago, the market began to realize the full-scale acceleration of AI infrastructure construction. He highlighted a severe supply shortage in the hardware sector, where capacity expansion had been extremely limited in recent years. He stated: Demand is skyrocketing across the board—for standard CPUs, networking gear, storage, and memory.
Dell: Record Single-Day Surge Validates AI Server Demand In its fiscal first quarter of 2027, the company reported revenue of $43.8 billion, an 88% year-over-year increase, setting a new historical record. Revenue from AI servers reached $16.1 billion, soaring 757% year-over-year, with total AI orders for the quarter hitting $24.4 billion. Following the earnings report, Dell's stock price surged 33% in a single day on Friday, marking the largest single-day gain in the company's history. This report clearly demonstrates robust market demand for its AI servers. Dell's current market capitalization is now $125 billion higher than its peak in March 2000. Emmanuel Valavanis of Forte Securities commented that this stellar performance proves Dell is "another classic case of a former tech dinosaur transforming into an AI powerhouse." Dell's revival was not without challenges. Following the dot-com bubble burst, the company lost over 80% of its market value, went private in 2013, and did not return to public markets until the end of 2018. Although its personal computer business no longer matches the glory days of the late 1990s, when it grew over 200% annually, the rise of its AI server business has opened a new avenue for growth.
Lenovo: From PC Giant to AI Revenue Engine Lenovo stepped onto the global stage in 2005 by acquiring IBM's personal computer division, subsequently becoming the world's largest PC maker. However, the long-term structural decline of the PC industry has diminished the value of that crown. Faced with industry headwinds, Lenovo pivoted to focus on AI products and services, a shift now reflected in its financials. For its fiscal year 2026, Lenovo reported a 20% increase in annual revenue, with AI-related revenue doubling over the past year. AI-related business now accounts for nearly 40% of total sales. In terms of share price performance, Lenovo's stock surged 105% in May alone, marking its best monthly performance in over 25 years and reaching a record high. Year-to-date, Lenovo's stock has risen 159%, leading the constituents of the Hong Kong Hang Seng Index with a return more than triple that of the second-best performer.
Nokia: A Double Fall, and a New Life Focused on Network Gear Nokia suffered severe blows in the 2000s: first from the telecom boom's end, and then as its mobile phone business was decimated by the smartphone revolution. At its peak, Nokia's market cap reached around €300 billion. By 2012, its share price had plummeted nearly 98%, marking one of the most dramatic declines in tech history. After selling its mobile phone business to Microsoft in 2014, Nokia refocused its strategy on the relatively low-profile field of telecom network equipment. Its 2025 acquisition of U.S. optical networking specialist Infinera coincided with the explosion in demand for high-speed interconnects in AI data center computing clusters, providing a crucial boost to its recovery. In the first quarter, Nokia reported a 54% surge in operating profit, driven by an explosion in its AI cloud business. Net sales from AI and cloud customers grew 49% quarter-over-quarter, with new orders exceeding €1 billion. Year-to-date, Nokia's stock has gained over 124%, ranking as the fourth-largest gainer in the Europe Stoxx 600 index. However, due to its extremely high valuation base from the bubble era, its share price remains about 80% below its all-time closing high.
Cisco: From Dot-Com Peak to Reclaiming Historic Highs Cisco may be the company among these veterans that best exemplifies a "phoenix-like" rebirth. In 2000, Cisco briefly held the title of the world's most valuable company, only to become one of the iconic victims of the dot-com bust. It took a full 25 years for its stock to revisit its historical peak. The company's transformation path is clear: shifting from a traditional networking equipment vendor to an AI infrastructure provider. Earnings released earlier this month showed Cisco providing strong fourth-quarter revenue guidance while announcing job cuts in some areas to sharpen its focus on AI business, indicating sustained upward momentum. Year-to-date, Cisco's stock has risen 56% and is on track to post its largest annual outperformance relative to the Nasdaq 100 index since 2006.
Intel: A Turnaround After Four CEOs Less than two years ago, investors viewed Intel as a company in decline, with years of manufacturing issues eroding its former leadership in semiconductors and sending its stock price plummeting. Current CEO Pat Gelsinger has gradually rebuilt market confidence. Intel and Apple have reached a preliminary agreement for Intel to manufacture some chips for Apple devices, a move seen by the market as a positive signal that its foundry business is beginning to bear fruit. Previously, Nvidia announced a $5 billion investment in Intel, and Intel announced its new Xeon chips would be used in some Nvidia systems, driving the stock higher on multiple occasions. Year-to-date, Intel's stock has surged 211%, positioning it for a potential record annual performance.
Texas Instruments and Micron: The Underestimated AI Beneficiaries Texas Instruments was a dominant player in telecom and mobile device chips in the 1990s. Between 2000 and 2002, its stock price fell more than 85% from its peak. Subsequently, the company struggled in automotive and industrial markets and did not immediately benefit from the early days of the ChatGPT era. As AI servers demand higher power density, procurement of Texas Instruments chips has increased substantially. Its data center business unit now generates over $1 billion in annual sales, with growth exceeding 60% in 2025. Year-to-date, Texas Instruments' stock is up 76%, on pace for its best annual performance since 2003.
Micron's story is even more dramatic. Founded nearly 50 years ago in the basement of an Idaho dental clinic, this memory chip maker officially entered the trillion-dollar market cap club this month. As a major manufacturer of high-bandwidth memory, Micron directly benefits from surging demand fueled by the explosion in AI computing power. Over the past 12 months, its stock price has soared over 903%. It also set a record for the fastest climb from a $500 billion to a $1 trillion market capitalization, achieving this leap in just 48 trading days.
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