Dell Shares Rise on RBC Outperform Rating
Dell Technologies (NASDAQ:DELL) shares surged over 11% to an all-time high above $562 after RBC Capital Markets initiated coverage with an 'Outperform' rating and a price target of $640. The firm highlighted strong enterprise demand for AI investments, compute modernization, storage expansion, and PC refresh cycles as key drivers that could sustain Dell's performance beyond its long-term targets. RBC analysts emphasized Dell’s comprehensive portfolio across compute, PCs, servers, and storage, along with a robust supply chain and flexible consumption models. They also noted the company's shift in IP mix and AI server growth as potential margin expansion catalysts for its Infrastructure Solutions Group. Strong free cash flow generation was cited as supporting shareholder-friendly capital allocation. Dell reported record Q2 FY 2027 revenue of $47 billion, up 58% year-over-year, with adjusted EPS at $7.04 exceeding expectations. The company raised full-year guidance to around $192 billion and noted an AI server backlog of $95 billion, including over $60.9 billion in new orders during the quarter.
Tickers: $DELL
Topics: AI investments Dell RBC Capital Markets S&P 100 index