RBC Starts Dell at Outperform as AI Server Demand Supports Investment Case
DataNews Editorial Team
RBC Capital Markets initiated coverage of Dell on September 11 with an Outperform rating and a $640 price target. Dell shares rose 11.98% that day to close at $567.29, as the investment case focused on AI-server demand, Dell’s NVIDIA relationship and its reported order volume.
- RBC initiated Dell at Outperform with a $640 price target on September 11.
- Dell shares closed at $567.29 after rising 11.98% on the day.
- Dell reported $16.4 billion in second-quarter AI-server revenue and a $95 billion order book.
- Second-quarter storage revenue increased 26% year on year.
- The available information does not establish any data-center construction, capacity deployment or energy-infrastructure activity.
RBC Capital Markets initiated coverage of Dell on September 11 with an Outperform rating and a $640 price target. Dell shares gained 11.98% on the day and closed at $567.29.
The investment case presented in the source is tied to demand for AI servers, Dell’s collaboration with NVIDIA and a substantial reported order book. Dell reported $16.4 billion in AI-server revenue in its second quarter, described by the source as a quarterly record, and reported orders worth $95 billion.
Dell also raised its full-year revenue forecast to $192 billion. The source states that reaching this forecast would represent growth of nearly 70% versus the prior year. The calendar period covered by the reported second quarter and full-year outlook was not specified.
For data-center infrastructure markets, the figures may signal that the AI procurement cycle remains supportive not only for accelerated-computing server platforms but also for related systems. Dell’s storage revenue rose 26% year on year in the second quarter, indicating demand across another layer of the infrastructure stack.
Dell is among the early suppliers of NVIDIA Grace Blackwell NVL72 rack-scale systems, according to the source. However, no information was provided on shipment volumes, delivery dates, end-customer deployments, data-center capacity or associated power infrastructure.
The rating and Dell’s disclosed AI infrastructure metrics point to continued demand for data-center compute equipment. They could also indicate sustained procurement of adjacent infrastructure, including storage, although the available material provides no data on data-center capacity, project development or power supply.
- TechNews 科技新報 / ChineseSource →
This article was prepared by the DataNews editorial team based on the sources listed above.