Dell Technologies shares climbed 12% on Friday after RBC Capital Markets initiated coverage of the computer maker with an outperform rating and a $640 price target, according to CNBC. The move extends a remarkable year for a company that has more than quadrupled in value during 2026.
The rally reflects Dell’s transformation from a legacy PC vendor into one of the primary suppliers of Nvidia-based servers and related equipment that cloud providers and enterprises are racing to deploy for artificial intelligence workloads. That shift has reshaped how Wall Street values the company.
RBC Sees Room to Run
In a note published Thursday, RBC analyst David Paige argued that the AI infrastructure buildout still has years left to run and that Dell is positioned to capture a meaningful share of that spending. “With no signs of slowing, we believe DELL continues to be well positioned to benefit from a multi-year AI infrastructure spending cycle,” Paige wrote.
The numbers behind that thesis are substantial. According to RBC, Dell is sitting on $95 billion in server orders it has booked but not yet begun to fill, and it sold roughly $16.4 billion of AI servers in its second quarter alone. That backlog gives the company unusual visibility into future revenue at a time when demand for computing capacity continues to outpace supply across the industry.
Guidance Raised on AI Demand
Dell reported second-quarter results earlier this month that came in ahead of analyst estimates, and management raised its fiscal full-year sales forecast to $192 billion — a figure that would represent a nearly 70% increase over the prior year. Executives told investors on the earnings call that they are raising prices in response to higher component costs, particularly for memory, and that those increases factored into the elevated guidance.
The company’s early shipping of Nvidia’s Grace Blackwell NVL72 racks has underscored its standing as a favored partner for the chipmaker, giving Dell priority access to GPUs that remain in tight supply. Dell counts neocloud providers including CoreWeave among its customers.
Hardware tied to Nvidia’s processors isn’t the only part of the business benefiting from the AI wave. Storage revenue rose 26% in the most recent quarter, with demand driven in part by AI workloads. RBC’s note described Dell as effectively a one-stop shop for organizations standing up AI infrastructure, spanning compute, storage, and the supply chain needed to deliver it.
A Supply Chain Moat
Paige pointed to Dell’s logistics and procurement operation as a durable advantage, particularly when parts are scarce. “Dell’s best-in-class supply chain represents a competitive moat that differentiates the company during periods of supply disruption, as customers increasingly turn to Dell for a ‘calming hand’ during periods of supply volatility/constraints,” he wrote.
The stock has also drawn attention outside financial circles. In July, President Donald Trump — who has purchased Dell shares since returning to office last year — again recommended buying the company’s computers, according to CNBC.
Friday’s gains add to a run that has already made Dell one of 2026’s standout performers among large technology companies. Whether the rally can continue may depend on how long the AI infrastructure spending cycle lasts and whether Dell can keep converting its order backlog into revenue while managing the rising component costs that prompted its higher prices.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/11/dell-stock-rbc-initiation.html
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