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RBC Capital Markets Initiates Dell Coverage With Outperform Rating
Electronic Technology · Computer Processing Hardware · cnbc · 2026-09-11
CRWV, DELL, XLK, NVDA, QQQ, IGV, SPY
Dell Technologies shares climbed 10% following an optimistic initiation from RBC, which highlighted the company's critical role in the AI infrastructure boom.
What Happened
Analyst Initiation and Market Sentiment: RBC Capital Markets recently initiated coverage on Dell Technologies with an outperform rating and a $640 price target. This positive outlook contributed to a 10% surge in the stock price, reflecting investor confidence in the company's trajectory throughout 2026.
AI Infrastructure Dominance: Dell has solidified its position as a primary supplier for Nvidia-based servers, which are in high demand among cloud providers and enterprises. The company currently maintains a massive $95 billion server order backlog, underscoring its pivotal role in the ongoing artificial intelligence spending cycle.
Financial Growth and Guidance: Following a strong second-quarter performance that beat analyst expectations, Dell raised its full-year revenue forecast to $192 billion. Management noted that price increases for essential components like memory are being implemented to manage rising costs while supporting this aggressive growth.
Supply Chain Competitive Advantage: Analysts emphasize that Dell's robust supply chain serves as a significant competitive moat during times of market volatility. By acting as a comprehensive provider for AI infrastructure, including storage and specialized server racks, the firm continues to differentiate itself from competitors.