Dell Technologies Shares Rise Nearly 6% to Record High as RBC Expects It to Continue Benefiting From Multi-Year AI Infrastructure Spending Cycle

TradingKey - On September 16 US Eastern Time, Dell Technologies (DELL) rose to $576.75 intraday, setting another record high. Recently, Michael Dell, CEO of Dell Technologies, pointed out that amid the AI boom, prices for computing equipment and personal computers will continue to rise, and the "structural shortage" of hardware chips is highly likely to worsen further in 2027.

Dell stock price chart, Source: TradingView

Dell stated that various technological iterations in the field of large models, especially the upgrade from foundational large language models (LLMs) to reasoning models and agentic models, have an evolution cycle far shorter than the construction cycle required to build a new chip fabrication plant.

He added that judging from all available information, the structural chip shortage in 2027 is very likely to be more severe than in 2026. Indeed, costs are rising, and we will pass these costs along into our product pricing.

Dell believes that as customers gradually accept the reality of rising infrastructure costs, their primary concern will become: "Can you stably supply the products we need over the next year or two? This is precisely where we are focusing our engagements with customers. We will closely monitor abnormal signals such as double-ordering and idle resources, and no such situations have been observed so far."

Dell told investors that in an environment of component shortages and rising memory prices, Dell believes the credibility of its demand signals is at the top of the industry: "We deal directly with various customers and are able to grasp the true demand of end users."

In addition, Oracle management reiterated at its recent earnings call that its fiscal year 2027 capital expenditure plan is as high as $90 billion to $95 billion, which will be used to procure AI server racks, liquid cooling systems, and supporting network equipment, explicitly naming Dell and HPE as the primary beneficiaries of this spending.

Meanwhile, RBC stated in a research report that it believes Dell will continue to benefit from a multi-year AI infrastructure spending cycle. It highlighted the competitive moat of Dell's supply chain, calling its "best-in-class supply chain a competitive barrier that stands out particularly during periods of supply disruption, as customers increasingly view Dell as a stable, reliable partner during supply fluctuations or shortages."