RBC Capital Markets initiated coverage of Dell Technologies with an outperform rating and a $640 price target, sending the stock up 12% on Friday. The move extends a rally that has left Dell shares up nearly 350% in 2026, as the company has become one of the top vendors for Nvidia-based AI servers.
Dell Technologies stock rose 12% on Friday after RBC Capital Markets initiated coverage of the computer maker. RBC gave Dell an outperform rating and a price target of $640. The jump extends a run that has left Dell shares up more than fourfold so far in 2026, as the longtime PC maker has emerged as one of the top vendors for Nvidia-based servers and related equipment.
RBC points to a multi-year AI cycle
RBC analyst David Paige wrote in a note on Thursday that Dell continues to be well positioned to benefit from a multi-year AI infrastructure spending cycle, with no signs of slowing. According to RBC analyst David Paige: "Dell's best-in-class supply chain represents a competitive moat", with customers turning to Dell for stability during periods of supply disruption.
Dell holds $95 billion in sales in its server order backlog that it hasn't yet started to fill. It also sold about $16.4 billion of AI servers in its second quarter, according to RBC. The company was among the first to ship Nvidia's Grace Blackwell NVL72 racks, and it supplies neoclouds including CoreWeave.
Pricing moves and a raised forecast
Dell reported second-quarter earnings that surpassed estimates earlier this month. It also raised its fiscal full-year sales forecast to $192 billion, which would mark a nearly 70% increase over last year. Executives told investors on the earnings call that the company is increasing prices because of rising costs for computer parts such as memory, a factor built into the elevated guidance.
Storage revenue, which covers products that aren't based on Nvidia GPUs, rose 26% in the most recent quarter as AI-driven demand spread beyond servers. RBC said this positions Dell as a one-stop shop for companies building out AI infrastructure.
Source: CNBC
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