Dell Technologies (NYSE:DELL) shares rose 11.98% on Friday to close at a record $567.29 after RBC Capital Markets initiated coverage of the company with an outperform rating.
RBC set a price target of $640 for Dell, citing the company’s server order backlog and demand for infrastructure designed for artificial intelligence workloads.
The stock’s Friday advance added to gains recorded over recent months as investors assessed demand for AI-related computing hardware.
RBC Cites $95 Billion Server Backlog
According to RBC, Dell has a server order backlog of $95 billion, including approximately $16.4 billion of AI-dedicated servers sold during the latest quarter.
The brokerage cited continued demand for AI-related servers as part of its investment view and set its $640 target above Dell’s Friday closing price.
Demand for AI infrastructure has also coincided with a rise in Dell’s share price over recent months. The stock has gained more than 43% over three months and more than 274% over six months.
Analyst Average Target Near Current Share Price
Analyst recommendations for Dell are predominantly at the buy level, according to the supplied data.
However, the average analyst price target stands at $570.48, representing approximately 0.56% above Friday’s closing price of $567.29.
RBC’s $640 target is therefore above both Dell’s latest closing price and the broader analyst average.
Dell stock price
