Dell shares rise 12% to record high of $567

The Dell share closed on Friday at a record price of $567.29, a rise of almost 12% in a single day. The advance follows a positive analyst recommendation from RBC and impressive figures on AI server orders. That makes the share up 355% this year already, with Dell growing from a traditional PC company into one of the biggest winners on the stock market.

In short:

• Dell rises 11.98% on Friday to a record closing price of $567.29
• RBC initiates coverage with a price target of $640 and a positive recommendation
• Dell reports an AI server order backlog of $95 billion and raises its full-year revenue forecast to $192 billion

RBC puts Dell on its buy list with a price target of $640

The price jump is driven in part by a new recommendation from investment bank RBC, which is covering Dell for the first time with a positive rating and a price target of $640. That is still well above the current record price, indicating that analysts expect further gains.

Scott Melker shares the striking figures on X.

AI server orders at a record level

The fundamental driver behind the share is the explosive growth in AI server activities. Dell ended the past quarter with an order backlog of $95 billion in AI servers, a record. In that quarter the company booked $60.9 billion in new AI server orders and generated $16.4 billion in revenue from AI servers.

Over the past twelve months Dell converted $131.7 billion in demand into firm orders. On the basis of that growth the company is raising its expected annual revenue to $192 billion at the midpoint of the range, an increase of around 70%. Expected revenue from AI-optimised servers is being revised to $74 billion.

Michael Dell’s fortune passes Jeff Bezos

The share price rise also has consequences for the wealth of founder and CEO Michael Dell. According to Forbes’ real-time wealth ranking, his fortune now stands at $276.5 billion, overtaking Jeff Bezos at $273 billion.

The price chart shows how the share has risen almost continuously from a starting price of around $150 in January to its current level. The recent AI investment wave appears to be transforming Dell from a PC manufacturer into a key supplier of the digital infrastructure that large tech companies need.