2024 has been a great year for U.S. indices, with the benchmark S&P 500 posting new all-time highs 38 times so far. The rally has been primarily driven by the tech sector, focusing on artificial intelligence (AI). Several record-breaking stocks have seen triple-digit returns.

However, the markets appear to have taken a summer breather in July. This raises the question of whether it’s time to buy the dip under the theory that record-breaking stocks have more upside ahead.

While AI stocks have been the leader in terms of gains, it is not the only play. Analysts have worried that the market has become top-heavy, with a relatively small number of companies concentrating many of the gains. Yet, given the focus on tech, the Nasdaq could be the better-performing index this year.

Stocks that have already risen significantly do not necessarily become overvalued. If their income has managed to keep up or surpass the share price, then they can still maintain their valuations.

Here are three record-breaking stocks that might have more upside ahead in this environment:

Dell Technologies (DELL)

The company best known for its personal computers has developed various IT solutions. Notably, Dell Technologies (NYSE:DELL) manufactures and markets servers with exponential demand growth thanks to AI. This has helped drive the stock up 66% so far this year, though it has been higher.

Dell’s share price peaked at a record high of $179.70 per share as investors were somewhat overenthusiastic about the company’s prospects leading up to its first-quarter earnings report on May 30th. Despite nearly doubling its EPS over a 1-year period, the stock price dropped after the earnings report as investors were troubled that Dell was not making as much money as expected on server sales.

Following the price decline, Dell stock is now trading at a more reasonable price-to-earnings (P/E) ratio of 26 times, making it a relatively affordable record-breaking stock. In the meantime, 18 out of 21 analysts think the company is a buy, giving it an average price target of $161.05 per share, representing a potential 26% upside.

The company has become a top vendor of AI-oriented servers and saw sales in that segment jump 42% over the last year. As the supply of materials increases, Dell could see a resurgence in profitability in this division and boost its bottom line.

Constellation Energy (CEG)

The northeast-based energy company has benefited from AI thanks to increased demand for electricity to power servers and processors, many of which are being built in areas Constellation Energy (NASDAQ:CEG) serves. AI is expected to drive a significant increase in electricity demand in the coming years, with an estimated annual growth rate in demand of 2.4% compound annual growth rate.

Constellation produces power at an average of $25 per kilowatt hour compared to the national grid’s average of $45 per kilowatt hour, giving it one of the better profit margins in the sector. It is the largest owner of nuclear power plants, which provide a steady energy source at a relatively low price, ideal for large server farms.

The CEG stock trades at a P/E ratio of just 25.5 times despite over 63% growth in its share price. However, like Dell, the record-breaking stock has declined somewhat from its most recent peak and is down 17%.

Analysts have retained a positive outlook on the company’s prospects, with all estimates expecting CEG stock to rise. The average price target is $234.20 per share, representing nearly 30% potential upside.

Boston Scientific (BSX)

Boston Scientific (NYSE:BSX) has experienced record-breaking stock status this year. The medical devices company for specialists, which focuses on interventional radiology, cardiology and neuromodulation, has seen its stock price increase 36% so far. In fact, the company reached its newest all-time high earlier this week.

Heart attacks are the number one cause of death not only in America but around the world, so there is an understandable expectation that demand for the company’s products will steadily rise over time. This may explain why BSX stock has a P/E ratio of 66 times, as investors could be purchasing shares with the anticipation that its earnings will continue growing.

In its most recent earnings release, the company stated it expects organic sales growth of 10-12% this year, with EPS increasing even faster at 12-14%. Analysts concur with the growth prospects, with three-quarters of them viewing the company as a buy.

The average price target is $84.74 per share. However, the more bullish analysts see BSX’s share price rising as high as $100 per share over the coming months. This represents an increase of 27% from its current value.

On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.