Dell Stock Reaches All-Time High Following RBC Capital Outperform Rating
Shares of Dell Technologies (DELL) surged to an all-time high on Friday, rising nearly 10% after RBC Capital Markets initiated coverage with an outperform rating and a $640 price target. The move reflects strong investor confidence in Dell's position within the AI infrastructure market, where demand for servers powered by Nvidia GPUs is surging. RBC analyst David Paige highlighted Dell’s robust server order backlog of $95 billion and its recent sales of $16.4 billion in AI servers as key drivers. The company also benefits from a strong supply chain that provides stability during periods of hardware shortages, enhancing customer trust. Additionally, Dell's early shipment of Nvidia’s Grace Blackwell NVL72 racks underscores its strategic partnership with the chipmaker. Dell has significantly outperformed expectations in recent quarters, reporting second-quarter Infrastructure Solutions Group revenue of $31.8 billion and raising full-year guidance to $192 billion — a 70% increase year over year. The company also boosted AI server revenue projections by nearly 200%, reflecting the broader adoption of AI infrastructure.
Topics: AI infrastructure demand Dell stock RBC Capital Markets