Dell Stock Surges After RBC Initiation, Driven by Strong AI Infrastructure Demand
Dell Technologies stock rose nearly 10% on Friday after RBC Capital Markets initiated coverage with an 'outperform' rating and a $640 price target. The move comes as Dell shares have surged over 350% in 2026, driven by its position as one of the top vendors for Nvidia-based servers used in AI infrastructure. RBC analyst David Paige highlighted that Dell is well-positioned to benefit from a multi-year spending cycle on AI hardware. The company reported $192 billion in full-year sales guidance and has a server backlog exceeding $95 billion, with over $16.4 billion of AI servers sold in the second quarter alone. Dell's strong supply chain is seen as a competitive advantage during periods of component shortages. Additionally, demand for non-GPU-based products like storage also increased by 26% due to AI growth.
Topics: AI infrastructure spending Dell Technologies RBC Capital Markets server sales