Dell's AI server sales just went vertical — ride the momentum on Dell and partner Palantir
Dell just reported its fastest revenue growth since 2018, powered by a staggering 757% jump in AI server sales. The stock surged over 30% in a single day, and partner Palantir rallied 10% on the news.
Idea
Dell's blowout quarter — 757% growth in AI server revenue — just proved that the AI hardware spending cycle is accelerating, not slowing. When a company this large posts its best day ever, it tends to draw institutional money for weeks as analysts scramble to raise targets. Palantir, which runs AI Factory deployments on Dell hardware, jumped 10% the same day as investors connected the dots. After a 30% gap-up, short-term traders who bet against the stock get squeezed and forced to buy back in, creating a second wave of buying. The risk is that a move this big can pause or pull back 5-8% before continuing — so the trade is to ride the momentum with a trailing stop rather than buying and forgetting.