Dell Technologies shares surged as much as 11% on Friday to an all-time intraday high above $562, after RBC Capital Markets initiated coverage of the stock with an Outperform rating and a Street-topping $640 price target — implying roughly 14% more upside from an already blistering run.

Analyst David Paige told clients the computer maker's transformation into a core supplier of AI infrastructure is nowhere near finished. "With no signs of slowing, we believe DELL continues to be well positioned to benefit from a multi-year AI infrastructure spending cycle," Paige wrote in the note initiating coverage.

Backlog Swells Past $95 Billion

The bullish call leans on numbers Dell itself posted just weeks ago. In its most recent quarter, the company booked $60.9 billion in new AI server orders, pushing its total AI backlog to roughly $95 billion — enough, RBC argues, to give investors visibility deep into fiscal 2028. Revenue for the quarter came in near $47 billion, up 58% year over year, with adjusted earnings of $7.04 a share beating Wall Street estimates. Dell also raised its full-year revenue guidance by $25 billion, to around $192 billion, a lift executives detailed in the company's investor relations disclosures.

RBC's thesis isn't just about GPU-stuffed servers. The firm pointed to Dell's non-Nvidia businesses — storage revenue alone climbed 26% last quarter — as evidence the company is becoming a one-stop shop for enterprises racing to stand up AI infrastructure.

"DELL'S BEST-IN-CLASS SUPPLY CHAIN REPRESENTS A COMPETITIVE MOAT... AS CUSTOMERS INCREASINGLY TURN TO DELL FOR A 'CALMING HAND' DURING PERIODS OF SUPPLY VOLATILITY." — RBC ANALYST DAVID PAIGE

The move caps an extraordinary run for a stock that was, not long ago, viewed as a legacy PC and enterprise-hardware name. Dell shares are now up nearly 350% since the start of 2026, according to CNBC's market coverage, as investors have rewarded the company for riding the same AI infrastructure wave that has lifted Nvidia, Oracle and other hyperscaler suppliers this year.

Not every analyst has been uniformly bullish — some have flagged Dell's rising debt load and heavier insider selling even as price targets climb, a tension Yahoo Finance highlighted in its coverage of Friday's move. Still, RBC's initiation adds a fresh, high-profile voice to the bull case at a moment when the broader market is fixated on whether the AI infrastructure buildout has further to run.

With Dell shares closing in on RBC's $640 target, investors will be watching the company's next earnings report and any updates on order backlog to see whether demand can keep pace with a stock price that has more than quadrupled this year.