Dell's AI servers just went vertical — ride the spillover into partner Palantir
Dell just reported that its AI server revenue exploded 757% compared to last year, sending its stock up 32% in a single day. Palantir, which runs AI software systems powered by Dell's servers, jumped 10% as investors realized the partnership is paying off.
Idea
Dell's blowout earnings proved that companies buying AI servers are spending real money at massive scale — 757% growth is not a gradual trend, it's an explosion. Palantir is one of Dell's key AI Factory partners, meaning it builds the software layer that runs on top of Dell's hardware. When hardware demand surges this dramatically, the software partners that ride on top tend to follow. Palantir has only moved 10% so far while Dell jumped 32%, suggesting the market hasn't fully priced in what this means for Palantir's pipeline. With software stocks wrapping up their best month since 2001, the broader sector tailwind adds extra fuel.