Dell Shares Jump 10% After RBC Starts Coverage With Outperform Rating

The same report described the shares as having more than quadrupled in 2026, as the company long known for personal computers has become one of the largest vendors of Nvidia-based servers and related equipment that cloud providers and enterprises are buying for artificial intelligence work.

"With no signs of slowing, we believe DELL continues to be well positioned to benefit from a multi-year AI infrastructure spending cycle," RBC analyst David Paige wrote in a note published Thursday.

RBC said Dell holds $95 billion in server orders it has not yet started to fill, and that it sold about $16.4 billion of AI servers in its second quarter.

Dell reported second-quarter results earlier this month that surpassed estimates, and raised its fiscal full-year revenue forecast to $192 billion, which would represent a nearly 70% increase in sales over last year. Executives told investors on the earnings call that the company is increasing prices because of rising costs for computer parts such as memory, a factor behind the higher guidance.

Dell was among the first vendors to ship Nvidia's Grace Blackwell NVL72 racks, a position RBC tied to its relationship with Nvidia and its ability to secure supply of the company's GPUs. Dell supplies neocloud providers including CoreWeave.

Demand is also rising for Dell products not built around Nvidia GPUs. Storage revenue increased 26% in the most recent quarter, and RBC said the company can act as a one-stop shop for firms building out AI infrastructure.

"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," Paige wrote.

In July, President Donald Trump, who has bought Dell shares since returning to office last year, again recommended buying Dell computers.