Dell Jumps 10% After RBC Starts Coverage With $640 Target
Updated
Updated · CNBC · Sep 11
Dell Jumps 10% After RBC Starts Coverage With $640 Target
3 articles · Updated · CNBC · Sep 11
Summary
Dell shares climbed 10% Friday after RBC Capital Markets initiated coverage with an outperform rating and a $640 price target.
RBC tied the call to AI infrastructure demand, saying Dell is well placed for a multi-year spending cycle as a leading vendor of Nvidia-based servers and related equipment.
Dell has a $95 billion server backlog yet to be filled and sold about $16.4 billion of AI servers in its second quarter, while storage revenue rose 26% on AI-driven demand.
Earlier this month, Dell beat second-quarter estimates and raised its full-year sales forecast to $192 billion, helped by higher pricing and its early shipments of Nvidia Grace Blackwell NVL72 racks.
The rally adds to a 2026 surge of more than fourfold, underscoring how the longtime PC maker has been recast as a key one-stop supplier for enterprise and cloud AI buildouts.