Dell stock jumps on RBC initiation, now up nearly 350% in 2026
Dell sold about $16.4 billion of AI servers in its second quarter, RBC said.
TL;DR
- Dell Technologies stock increased by 12% after RBC Capital Markets initiated coverage with an outperform rating and a $640 price target.
- Dell shares have more than quadrupled in 2026, becoming a top vendor for Nvidia-based servers crucial for AI.
- RBC believes Dell is well-positioned to benefit from a multi-year AI infrastructure spending cycle.
- Dell has a $95 billion server order backlog and sold approximately $16.4 billion of AI servers in its second quarter.
- The company surpassed earnings estimates and raised its full-year sales forecast to $192 billion, a nearly 70% increase.
- Dell is increasing prices due to rising costs for computer parts like memory.
- Dell was among the first to ship Nvidia’s Grace Blackwell NVL72 racks and supplies neoclouds like CoreWeave.
- Demand for Dell's non-Nvidia GPU products, such as storage, is also increasing due to AI.
- RBC views Dell's best-in-class supply chain as a competitive advantage, providing stability during supply disruptions.
- President Donald Trump has recommended buying Dell shares and computers.