Dell Technologies stock rose 10 percent Friday, reaching an all-time high above $562, after RBC Capital Markets initiated coverage with an Outperform rating and a $640 price target—a 14 percent upside from current levels.
Dell shares have quadrupled in 2026, gaining nearly 350 percent. The company has emerged as the top vendor for Nvidia-based servers and related equipment essential for AI infrastructure.
RBC analyst David Paige cited Dell's $95 billion server order backlog—which the company has yet to fill—as evidence of a multi-year AI infrastructure spending cycle. Dell sold approximately $16.4 billion of AI servers in its second fiscal quarter alone.
Dell reported second-quarter earnings earlier this month that beat estimates and prompted the company to raise its fiscal full-year revenue forecast to $192 billion, representing a 70 percent increase over the prior year. Executives attributed the raise partly to price increases on critical components such as memory.
Dell was among the first to ship Nvidia's Grace Blackwell NVL72 racks, demonstrating its close relationship with Nvidia and secure GPU supply access. The company supplies neocloud providers including CoreWeave with AI infrastructure solutions.
Demand for non-GPU products is also climbing. Storage revenue rose 26 percent in the most recent quarter, underscoring Dell's ability to serve as a comprehensive supplier to companies building AI infrastructure.
Payge highlighted Dell's best-in-class supply chain as a key competitive advantage during periods of supply disruption. Customers increasingly rely on Dell for stability when supply constraints tighten.
