Dell stock soars to an all-time high after RBC initiates with outperform rating

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RBC analyst David Paige set a $640 price target, citing Dell's position in a multi-year AI infrastructure spending cycle

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Shares of Dell $DELL jumped 10% on Friday after RBC Capital Markets assigned the computer maker an outperform rating and a $640 price target in its initiating coverage note.

Friday's gain pushed Dell stock to an all-time high, extending a rally that has seen shares more than quadruple in 2026, fueled by surging demand from cloud providers and enterprises buying Nvidia $NVDA-based servers and related hardware for AI deployments.

RBC analyst David Paige issued the note on Thursday, writing that Dell holds $95 billion in sales in its server order backlog and sold approximately $16.4 billion in AI servers in its most recent quarter. "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.

Paige also pointed to Dell's supply chain as a differentiating factor. "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.

Dell was an early shipper of Nvidia's Grace Blackwell NVL72 racks, according to CNBC, a distinction that underscores its tight partnership with Nvidia and its demonstrated capacity to obtain scarce GPU supply. Storage revenue climbed 26% in the most recent quarter, demonstrating that AI-driven demand is lifting Dell's GPU-independent product lines as well; RBC argues this breadth makes Dell a single destination for enterprises assembling full AI infrastructure stacks.

Dell's second-quarter results, reported earlier this month, topped analyst expectations. Infrastructure Solutions Group revenue jumped 89% year over year to $31.8 billion, with the AI-optimized server segment alone reaching $16.4 billion — double the year-ago figure. The company lifted its full-year revenue outlook to $192 billion, roughly 70% growth year over year, and raised its AI-optimized server revenue outlook to $74 billion, representing roughly 200% growth. Full-year adjusted EPS guidance now stands at $25.50, up 148% annually. Executives attributed the higher guidance in part to price increases aimed at offsetting rising input costs, particularly for memory.

Earlier this year, Dell posted first-quarter revenue of $43.84 billion, an 88% jump from a year earlier, driven by a 757% year-over-year increase in AI server revenue to $16.1 billion within its Infrastructure Solutions Group.

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