Dell just proved the AI spending boom is real — ride the ripple into Palantir and the software rally
Dell just reported that its AI server revenue grew 757% year-over-year, sending its stock up over 30% in a single day — its best ever. That blowout number is lifting the entire AI software ecosystem, with Palantir jumping 10% and enterprise software names like ServiceNow up 40% this month.
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Dell's earnings proved that the AI spending cycle is not hype — companies are buying servers at an incredible pace, and that spending flows directly into AI software partners like Palantir, which builds AI Factory systems on Dell hardware. ServiceNow has already rallied 40% this month as fear that AI would kill software companies completely evaporated. When one major player in a supply chain reports blowout numbers, the companies downstream tend to keep rising as investors re-price the whole group. Software stocks are wrapping up their best month since 2001, and the momentum has legs because AI budgets for the second half of the year are still being allocated.
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- Palantir Soars 10% as Dell Earnings Beat Validates Their AI Factory Partnership, Snowflake Lifts Software Rally — Yahoo Finance
- 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