Dell Technologies (DELL.US) saw its stock climb more than 5% during Wednesday's trading session, reaching $572.58 per share, as the company continues to ride a wave of strong demand for artificial intelligence infrastructure.
CEO Michael Dell recently highlighted that the company is experiencing robust demand across its entire portfolio, including AI servers, traditional servers, and storage solutions. The company reported $6.1 billion in AI GPU server orders for its fiscal 2027 second quarter, bringing total bookings over the past twelve months to an impressive $13.2 billion. Dell's enterprise AI customer base has now surpassed 6,500 clients, marking a growth rate of more than 60% in just six months.
As the AI boom continues to reshape the technology landscape, industry observers expect computing hardware and personal computer prices to keep climbing. The structural shortage of hardware device chips is likely to intensify further in 2027, creating additional tailwinds for companies like Dell that sit at the center of this demand surge.
In a fresh vote of confidence, RBC Capital Markets has initiated coverage on Dell Technologies with an "Outperform" rating and a price target of $640 per share. The analysts noted that there are currently no signs of deceleration in demand, and Dell remains well-positioned to benefit from the multi-year AI infrastructure spending cycle that shows no signs of abating.
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