Dell's AI server sales exploded 757% — catch-up trade on partner Palantir
Dell just reported that its AI server revenue grew 757% year-over-year, sending its stock up 32% in a single day. Palantir, which runs a joint 'AI Factory' program with Dell, jumped 10% as investors realized Dell's blowout results directly validate their partnership.
Idea
Dell's 757% jump in AI server revenue proves that companies spending on AI infrastructure are buying hardware at an accelerating pace. Palantir runs its AI Factory program jointly with Dell, meaning every Dell server sold into an AI deployment is a potential pipeline boost for Palantir's software. Palantir only rose 10% versus Dell's 32%, suggesting the market hasn't fully priced in how much Dell's results confirm demand for Palantir's side of the partnership. With enterprise software stocks broadly rallying — ServiceNow up 40% this month — Palantir has sector wind at its back too. The risk is that after a big move, stocks can pause, so waiting for a brief dip or confirmation of continued buying would be prudent.