3 Buy-Rated Dividend Stocks to Play the AI Boom
Analog Devices, Hewlett Packard Enterprise and NVIDIA combine dividend income with exposure to AI infrastructure, while favorable Zacks Ranks and positive earnings revisions support their near-term investment cases.
Artificial intelligence continues to dominate market commentary following recent remarks from mega-cap technology companies and software businesses during the Q2 earnings season. Three dividend-paying stocks positioned within the expanding AI ecosystem are Analog Devices (ADI), Hewlett Packard Enterprise (HPE) and NVIDIA (NVDA). Each carries a Zacks Rank #2 (Buy), reflecting bullish near-term earnings estimate revisions. Analog Devices designs and manufactures high-performance analog, mixed-signal and digital signal processing (DSP) integrated circuits for industrial, automotive, communications, data center and healthcare applications. AI servers consume substantial power, making efficient delivery to increasingly powerful processors a growing challenge. ADI is targeting this opportunity with power-management technology, including through its recent acquisition of Empower Semiconductor. The company recently reported revenue rising 40% year over year to roughly $4.0 billion, with Data Center among its strongest growth areas. Its shares yield 1.2% annually. Hewlett Packard Enterprise sells servers, storage, networking and cloud infrastructure to businesses and large computing customers. Its systems help customers train models, run inference and deploy AI applications. HPE collaborates closely with NVIDIA to integrate NVIDIA’s high-performance AI chips into HPE’s enterprise server systems. HPE’s latest quarterly release showed Cloud & AI revenue increasing 22.9% year over year to $7.7 billion, while server revenue rose 32.7% to $5.5 billion. HPE shares yield 1.1% annually. NVIDIA’s upcoming earnings release is also drawing attention. Since mid-May, expectations for both EPS and revenue have remained positive. Earnings are expected to increase nearly 100% year over year on 96% higher revenue. That sales growth would accelerate from recent periods, underscoring strong AI demand. Together, the companies offer dividend income and exposure to power management, enterprise infrastructure and advanced chips. However, their performance remains tied to sustained AI investment and demand, making continued spending an important catalyst and risk.