Dell's AI server blowout validates Palantir partnership — ride the software momentum wave
Dell just reported a massive earnings beat driven by AI server demand growing over 750% year-over-year, sending its stock up 30%+. Palantir, which partners with Dell on AI factory deployments, jumped 10% on the news — and the entire software sector is wrapping up its best month in 24 years.
Idea
Dell's blowout quarter — driven by 757% growth in AI server revenue — proves that companies building AI infrastructure are seeing real, accelerating demand. Palantir directly partners with Dell on AI factory projects, so Dell's results are a validation of Palantir's pipeline too. The stock already jumped 10%, but during software rallies like this one (best month since 2001), winners tend to keep running as fund managers scramble to add exposure. With the doom-and-gloom narrative around software stocks fully reversed, there's likely more room for Palantir and its peers.