RBC coverage sparks Dell share rally as AI server sales top $16 billion

Dell Technologies saw its share price surge after RBC Capital Markets announced it was initiating coverage of the computer maker, a move that lifted the stock by roughly 350% in 2026, according to CNBC. The investment bank highlighted the company’s recent performance in the artificial‑intelligence hardware market, noting a sizable uptick in revenue.

RBC’s initiation came with a bullish stance, citing Dell’s ability to capture a growing share of AI‑focused data‑center sales. The firm’s analysts pointed to the company’s second‑quarter results, where Dell sold about $16.4 billion worth of AI‑optimized servers, CNBC reported. That figure represents a significant portion of the firm’s overall server revenue and underscores the momentum Dell has built in a segment dominated by a handful of large players.

The $16.4 billion in AI server sales marks a sharp acceleration from prior quarters, reflecting heightened demand from cloud providers and enterprises looking to deploy large‑scale machine‑learning workloads. Dell’s portfolio, which includes the PowerEdge line and new GPU‑accelerated configurations, has been positioned to meet the power and scalability needs of modern AI applications. The strong sales data gave RBC confidence to issue a positive rating, which in turn sparked buying interest from institutional investors.

Dell’s pivot toward AI hardware follows a broader industry trend where traditional PC and server manufacturers are re‑tooling their product lines to serve the exploding AI market. Over the past two years, the company has invested heavily in partnerships with chip makers such as Nvidia and AMD, and has expanded its in‑house design capabilities to accelerate time‑to‑market. Competitors like HPE and Lenovo are also chasing the same revenue streams, making Dell’s recent gains a key indicator of its competitive positioning.

For investors, the rally suggests that market participants view Dell’s AI strategy as a catalyst for future growth. Analysts will be watching the company’s upcoming earnings releases for signs that the Q2 momentum can be sustained, especially as the broader tech sector navigates supply‑chain constraints and fluctuating demand for AI infrastructure. Should Dell continue to deliver strong server sales, the stock could see further upside, but any slowdown in AI spending or intensifying price competition could temper expectations.