Palantir Soars 9% as Dell's AI Server Sales Explode 757%, Setting Stage for High-Stakes Q2 Report

Palantir Technologies shares ripped higher last week, closing at €134.24 on Friday — a 9.12% daily pop that marked its strongest single session since April. The two-day surge added up to an 18% gain, fueled by a potent cocktail of partner earnings, Pentagon intrigue, and a broader software sector revival that saw investors pile back into AI plays beyond the semiconductor layer.

The immediate spark came from Dell Technologies. The hardware giant reported fiscal first-quarter 2027 revenue of $43.84 billion — up 88% year over year and well ahead of consensus. Adjusted earnings per share of $4.86 nearly doubled the $2.96 analysts had penciled in. But the number that mattered most for Palantir was Dell’s AI-optimized server revenue: $16.13 billion, a staggering 757% jump from the prior-year period. That validates the "AI Factory" partnership, where Palantir’s Foundry and AIP platforms run atop Dell hardware, and suggests enterprise demand for full-stack AI infrastructure is accelerating rather than plateauing. Trading volumes underscored the enthusiasm: 91.7 million Palantir shares changed hands on Friday, 89% above the daily average, while call option activity hit 878,632 contracts — 41% above normal.

The tailwind didn’t stop at Austin. Snowflake, another key partner in Palantir’s AI ecosystem, also delivered strong quarterly results, lifting sentiment across the entire enterprise software complex. ServiceNow and Palo Alto Networks rallied in sympathy, and the software sector as a whole notched its best month since 2001, according to 22V Research. The firm counts Palantir among companies with strong earnings revisions and improving sentiment scores, reflecting upbeat management commentary in recent conference calls. Separately, Washington provided a speculative boost: reports that the Trump administration is exploring direct financial aid for US drone manufacturers, involving the Pentagon and the Office of Strategic Capital, added a defense tailwind. Palantir was not explicitly named, but its deep ties to military platforms and drone operations made it a natural beneficiary in traders’ minds.

Should investors sell immediately? Or is it worth buying Palantir?

None of this happened in a vacuum. Palantir’s own first-quarter 2026 results, released in early May, laid a solid fundamental foundation. Total revenue soared 85% to $1.63 billion, with US commercial revenue jumping 133% to $595 million. US overall revenue rose 104% to $1.28 billion. Net income roughly quadrupled to $870.5 million, and remaining contract value surged 98% to $11.8 billion — evidence that the pipeline of large deals is converting into real backlog. Management responded by raising full-year guidance to $7.65–$7.66 billion, with US commercial revenue growth pegged at a minimum of 120%.

Yet the valuation debate remains acute. The stock trades at a price-to-earnings ratio of roughly 176 to 203, depending on the metric, leaving analysts sharply divided. Target prices span from $50 to $255, with a consensus around $183.73. Citigroup and Rosenblatt reiterate "Buy" at $225, while Argus upgraded to "Buy" with a $190 target. Even so, insider selling has been conspicuous: CEO Alexander Karp offloaded 397,744 shares on May 20 for about $54 million, and insiders as a group have sold $422 million worth of stock over the past three months with no reported purchases. Nineteen analysts rate the stock a buy, two say sell.

Technically, the rally lifted Palantir above its 50-day moving average of €121.54, but the 200-day average at €138.36 remains a stubborn resistance level. The relative strength index hovers near 90, signaling overbought conditions. Year to date, the stock still trades roughly 6% lower and stands 25.4% below its all-time high of €179.86.

The next major catalyst is August 3, 2026, when Palantir reports second-quarter earnings. Analysts expect earnings per share of $0.33 on revenue of $1.81 billion — a high bar given the recent fireworks. Whether the company can clear it will determine if the latest rally has legs or merely marks another spike in a volatile year.

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