RBC Capital initiated coverage of Dell Technologies (DELL) with an Outperform rating.
The firm set a price target of $640 for the stock.
Dell shares jumped more than 10% during Friday trading.
The stock price is currently approaching a new record high.
Analyst David Paige cited strong enterprise demand for AI investments and compute modernization as primary drivers.
The firm also expects growth from storage expansion and an upcoming PC refresh cycle.
RBC identified Dell’s supply chain and product portfolio as key advantages for gaining market share.
A large AI server backlog provides the company with visibility into future earnings.