Dell Technologies Inc (NASDAQ:DELL) shares hit an all-time high above $562, up 11% on Friday after RBC Capital Markets initiated coverage with an Outperform rating and a $640 price target.
RBC's initiation cited enterprise demand for AI investments, compute modernization, storage expansion and PC refresh, which the firm said should sustain results above Dell's long-term targets.
Analysts pointed to Dell's end-to-end portfolio spanning compute, PCs, storage and servers, along with its installed base, supply chain and flexible consumption options, as factors positioning the company to keep gaining market share.
The firm also flagged Dell's IP mix shift and AI server growth as meaningful operating margin expansion drivers for its Infrastructure Solutions Group, and said robust free cash flow generation supports shareholder-friendly capital allocation.
Dell reported record fiscal second-quarter 2027 revenue of approximately $47 billion, up 58% year-over-year, with adjusted earnings per share of $7.04 that beat estimates. Management raised full-year fiscal 2027 revenue guidance by $25 billion to roughly $192 billion.
The company's AI server backlog reached $95 billion, with more than $60.9 billion in new AI orders booked during the quarter. Dell said the backlog provides multi-year revenue visibility extending into fiscal year 2028.
Dell is scheduled to join the S&P 100 index in September 2026.
