TLDR
- DELL surged 11.8% Friday, hitting an all-time high of $567.75
- RBC Capital Markets initiated coverage with an Outperform rating and $640 price target
- AI server orders hit $60.9 billion with a $95 billion backlog driving the rally
- Michael Dell’s net worth jumped to $274 billion, pushing him to No. 3 on the Forbes billionaires list
- Risks include insider selling, supply shortages, and a planned $4 billion bond offering
Dell Technologies (DELL) hit an all-time high of $567.75 on Friday, closing up 11.8% at around $566.62. The stock had previously closed at $506.62, and trading volume jumped 71% above the daily average.
The rally came after RBC Capital Markets initiated coverage with an Outperform rating and a $640 price target. RBC pointed to Dell’s exposure to enterprise AI investment, compute modernization, storage expansion, and PC refresh cycles as key reasons for the call.
Goldman Sachs also raised its price target from $510 to $570, keeping a Buy rating. Barclays lifted its target from $550 to $603 with an Overweight rating. Fox Advisors upgraded the stock from Equal Weight to Overweight, setting a $625 target.
Dell’s latest earnings report, released September 1st, came in well above expectations. The company posted EPS of $7.04 versus the $4.91 consensus, and revenue of $46.97 billion, up 57.7% year over year.
AI Server Demand Powers the Numbers
AI server orders reached $60.9 billion, with a total backlog of roughly $95 billion. AI-optimized server revenue doubled to $16.4 billion last quarter. Dell has set full-year FY2027 EPS guidance at $25.50 and Q3 guidance at $6.50.
Oracle’s planned $95 billion capital spending program also boosted sentiment around AI hardware suppliers. Dell is seen as a major supplier of Nvidia-based servers, benefiting from continued demand from hyperscalers and enterprise customers.
The stock now carries a market cap of $367.23 billion, a P/E ratio of 32.89, and a beta of 1.34. The 50-day moving average sits at $447.99.
Billionaire Rankings Shift
The stock move pushed CEO Michael Dell’s estimated net worth up over 6% to $274 billion, putting him just ahead of Amazon co-founder Jeff Bezos at $273 billion for the No. 3 spot on Forbes’ real-time billionaires list.
Dell and Bezos have traded the No. 3 position throughout the week. Dell briefly passed Larry Page on Wednesday before giving it back. Page’s fortune stood at $279 billion on Friday. Elon Musk remains at No. 1 with an estimated net worth of $916 billion.
Not all the news is clean. Several insiders sold stock recently, including Silver Lake-affiliated entities that cut their positions by over 53% and 58%. In total, insiders sold 1.3 million shares worth over $624 million in the last three months.
Dell is also planning a $4 billion bond offering to refinance debt, which investors will monitor for its impact on leverage and cash flow. Supply shortages in AI hardware remain a risk, as does the stock’s elevated valuation after its sharp run-up.
The analyst consensus currently stands at Moderate Buy, with an average price target of $560.24 across 36 analysts. Dell pays a quarterly dividend of $0.63 per share, representing a $2.52 annualized yield of 0.4%.
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