Dell Technologies stock climbed 10% in Friday trading after RBC Capital Markets initiated coverage with an outperform rating and a price target of $640. The move adds to a remarkable year for the technology company, with shares more than quadrupling since the start of 2026.
The surge follows strong performance driven by Dell’s growing role as a premier vendor of Nvidia-based servers and related hardware. Cloud providers and enterprises are aggressively purchasing this equipment to support artificial intelligence workloads, propelling Dell to the forefront of the AI infrastructure boom.
In a research note released Thursday, RBC analyst David Paige highlighted the durability of the company’s outlook. “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.
Financial data presented by RBC indicates substantial demand ahead. Dell currently holds $95 billion in sales within its server order backlog that have not yet been fulfilled. Additionally, the company reported selling approximately $16.4 billion worth of AI servers during its second quarter.
Earlier this month, Dell reported second-quarter earnings that exceeded analyst expectations. The company also raised its full-year fiscal forecast to $192 billion, representing a nearly 70% increase in sales compared to the previous year. Executives attributed part of the elevated guidance to rising costs for computer components, such as memory, which led to price adjustments.
Dell has distinguished itself through early shipments of Nvidia’s Grace Blackwell NVL72 racks, underscoring its close partnership with the chipmaker and its ability to secure GPU supply. The company also supplies neocloud providers like CoreWeave.
Beyond Nvidia-dependent products, Dell is seeing increased demand for AI-driven storage solutions, with storage revenue jumping 26% in the latest quarter. RBC described Dell as a one-stop shop for companies building out AI infrastructure, noting that its supply chain acts as a competitive moat during periods of volatility.
The stock’s momentum comes amid political attention as well. President Donald Trump, who has publicly recommended purchasing Dell computers since returning to office last year, reinforced his support for the brand in July.
Is this surge sustainable or just hype? Thirty-five percent gains feel risky to me personally.
Trump endorsing Dell PCs is such a weird detail to include in a serious financial report, honestly.
That $95 billion backlog is insane. Dell is really riding the AI wave hard right now.