Dell Shares Surge 12% After RBC Initiates Coverage With $640 Price Target

Shares of Dell Technologies surged 12% on Friday following a bullish initiation of coverage by investment firm RBC Capital Markets, which issued an outperform rating and established a price target of $640 for the hardware manufacturer, as first reported by CNBC Business. The single-day rally extends a dramatic trajectory that has seen Dell's stock price more than quadruple so far in 2026.

The company's sustained market momentum reflects its rapid rise as a primary hardware vendor for artificial intelligence computing. Dell has established itself as a leading distributor of specialized server systems equipped with Nvidia processors, catering to hyperscale cloud operators and enterprise clients rushing to construct AI infrastructure.

In a note published Thursday, RBC analyst David Paige pointed to strong multi-year tailwinds supporting Dell's enterprise server division. "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 to investors.

According to research metrics provided by RBC, Dell is currently managing an unfulfilled server order backlog totaling $95 billion. The research firm highlighted that Dell generated roughly $16.4 billion in revenue specifically from AI server shipments during its second fiscal quarter.

The positive analyst coverage arrives shortly after Dell released second-quarter financial results that beat Wall Street consensus estimates. Management subsequently raised its full-year sales guidance to $192 billion, representing an anticipated year-over-year revenue surge of nearly 70%. During the post-earnings investor call, Dell executives noted that rising costs for critical memory components forced price increases across its product portfolio, contributing to the higher full-year revenue projection.

Dell's strategic alliance with Nvidia has allowed the company to maintain early access to high-demand graphics processing units amid ongoing supply constraints. The enterprise vendor was among the first in the industry to begin shipping server setups based on Nvidia's Grace Blackwell NVL72 racks, supplying specialized neocloud companies such as CoreWeave.

The broader influx of capital into data centers has also fueled gains across Dell's non-GPU hardware offerings. Revenue from Dell's enterprise storage segment grew 26% in the most recent quarter, prompting RBC analysts to describe the vendor as a complete platform for organizations building out complex AI deployments.

RBC also highlighted Dell's operational scale and component sourcing as key competitive advantages. "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," Paige wrote.

The hardware provider's market performance has also captured high-level political attention. In July, President Donald Trump—who has purchased Dell equity since taking office again last year—publicly encouraged consumers and businesses to buy Dell computers, further elevating the enterprise tech company during a record-setting fiscal period.