Dell's AI server sales just went vertical — ride the momentum into Palantir and the software rally
Dell just reported that its AI server revenue exploded 757% compared to last year, sending the stock up over 30% in its best day ever. The blowout results are dragging the entire AI software sector higher — Palantir jumped 10% and software stocks are wrapping up their best month in 25 years.
Idea
Dell's AI server business just grew 757% year-over-year, which is the clearest signal yet that companies are spending aggressively on AI infrastructure. When one company in a supply chain reports that kind of demand, its partners tend to follow — Palantir already surged 10% on the news because it runs AI factories directly on Dell hardware. Software stocks broadly are having their best month since 2001, meaning investors who fled the sector are now rushing back in. That combination of fresh money returning to software plus a hard-data proof point from Dell creates a strong tailwind for the AI-adjacent names that haven't fully priced in the spending boom yet.