A fresh vote of confidence lit a fire under Dell on Friday. RBC Capital Markets started coverage with an outperform rating and a $640 target, sending the stock up 10% during the session. In a Thursday note, analyst David Paige wrote, "With no signs of slowing, we believe DELL continues to be well positioned to benefit from a multi-year AI infrastructure spending cycle," and added, "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."
Dell has quickly become a go-to vendor for Nvidia-powered servers and related gear that cloud operators and large companies are buying to build AI systems. It was among the first to roll out Nvidia's Grace Blackwell NVL72 rack systems, underscoring a tight working relationship and access to GPU supply. Dell also sells into neocloud providers, including CoreWeave.
Beyond GPUs, AI is lifting other parts of the portfolio too, with storage revenue up 26% in the latest quarter. RBC says that breadth makes Dell a one-stop destination for companies standing up AI infrastructure.
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RBC highlighted a hefty $95 billion in server orders that Dell has yet to work through. The firm also estimates Dell tallied about $16.4 billion in AI server revenue in its second quarter. Earlier this month, Dell posted second-quarter results that topped forecasts and raised its fiscal full-year revenue outlook to $192 billion, which would be nearly 70% higher than last year. On the earnings call, executives said the company is raising prices because parts like memory are getting more expensive, and those cost-driven increases fed into the stronger guidance.
Dell's rally is riding a clear story line: AI is boosting demand, and Dell is positioned to capture it. The shares have already more than quadrupled in 2026, and investors are watching the AI server sales, that $95 billion order book, and the higher outlook. The company's early Grace Blackwell NVL72 shipments, strength in Nvidia-based systems, and gains in non-GPU lines like storage are all part of the same theme. In July, President Donald Trump - back in office as of last year and a buyer of Dell shares - again urged people to purchase Dell computers.
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