Dell's AI servers just grew 757% — the software rally is just getting started
Dell just reported that its AI server revenue grew 757% compared to last year, sending the stock up over 30% in a single day. That blowout number is lifting the entire software sector — ServiceNow is up 40% this month and Palantir jumped 10% today — as investors realize AI spending is accelerating, not slowing down.
Idea
Dell's 757% AI server revenue growth is the strongest signal yet that companies are spending aggressively on AI infrastructure — and that spending flows through to software firms like ServiceNow, Palantir, and Snowflake that build the applications on top. Earlier this year, investors worried AI would hurt software companies; now those fears have completely flipped, and money is pouring back into the sector. ServiceNow's 40% monthly gain and Palantir's 10% single-day pop show the momentum is broad-based, not limited to one or two names. When a whole sector catches a bid like this after months of doubt, the rally tends to run further than people expect because sidelined investors are forced to chase.
Key details
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News sources
- Dell stock skyrockets 32%, heads for best day ever as AI server revenue soars — CNBC
- ServiceNow's stock soars toward historic month as AI fears fade across software — MarketWatch
- Palantir Soars 10% as Dell Earnings Beat Validates Their AI Factory Partnership, Snowflake Lifts Software Rally — Yahoo Finance