Dell Technologies Inc. sign on the floor of the New York Stock Exchange (NYSE) on Wednesday, August 12, 2026 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
Dell Technologies Shares rose 10% during Friday trading after RBC Capital Markets initiated coverage on the computer maker, giving it an outperform rating and a $640 price target.
Friday’s gains come as longtime PC maker Dell has seen its stock price more than quadruple, with Dell’s stock emerging as one of the top vendors as of 2026. NvidiaBased servers and related equipment that cloud companies and enterprises have introduced for artificial intelligence.
“With no signs of slowing down, we believe DELL remains well-positioned to benefit from a multi-year AI infrastructure spending cycle,” RBC analyst David Page said in a note Thursday.
Dell has a server backlog of $95 billion in sales that it hasn’t started filling yet, but it sold about $16.4 billion of AI servers in the second quarter, according to RBC.
Dell reported better-than-expected second-quarter profits earlier this month, and the company raised its full-year forecast to $192 billion, which would represent a nearly 70% year-over-year increase in revenue.
Dell executives told investors on an earnings call that they were raising prices because of the rising cost of computer components such as memory, which they said was a factor in the higher guidance.
The computer maker was one of the first to ship Nvidia’s Grace Blackwell NVL72 racks, highlighting its close relationship with Nvidia and its ability to secure supply of its GPUs. Dell offers NeoCloud, which includes: core weave.
AI is also driving demand for Dell products that aren’t based on Nvidia GPUs, such as storage, with storage revenue increasing 26% in the most recent quarter. According to RBC, Dell can effectively become a one-stop shop for companies looking to launch an AI infrastructure.
“Dell’s best-in-class supply chain represents a competitive moat that differentiates the company during times of supply disruption, as more customers turn to Dell for a ‘calming hand’ during times of supply instability/constraints,” Page wrote.
President Donald Trump, who has been buying Dell stock since returning to office last year, recommended buying Dell computers again in July.
