Palantir’s Twin Tailwinds: Snowflake’s Outlook and Dell’s Server Boom Converge

Palantir Technologies shares have closed out a volatile week with a net gain of 12.74 percent, propelled not by any company-specific news but by two separate earnings reports that rekindled investor enthusiasm for the artificial intelligence software sector. The stock surged 9.21 percent on Friday after Dell Technologies delivered a staggering beat, and added another 2.24 percent on Monday as Snowflake’s raised guidance continued to ripple through the data-platform space.

The two catalysts, though distinct, share a common thread: they signal that corporate spending on AI infrastructure is accelerating faster than many analysts had anticipated. Dell’s first-quarter revenue for fiscal 2027 came in at $43.84 billion, a full 23 percent above consensus. More telling for Palantir, Dell’s sales of AI-optimised servers skyrocketed 757 percent to $16.13 billion, while new AI orders totalled $24.4 billion. The server maker also posted adjusted earnings per share of $4.86, far ahead of the $2.96 the market had expected.

The connection to Palantir is direct. Foundry and Ontology run on premises inside Dell’s AI Factory, which is built on Nvidia technology. That configuration appeals to regulated industries and government clients who cannot move sensitive data to public clouds. Every Dell AI Factory sale therefore creates a potential entry point for Palantir’s software—a relationship the market interpreted as a leading indicator for the second half of 2026.

Snowflake, meanwhile, set the tone earlier in the week. The company raised its full-year revenue forecast for fiscal 2027 to $5.84 billion from $5.66 billion and reported first-quarter product revenue of $1.33 billion, up 34 percent year on year—the strongest sequential growth in its history. Its stock jumped 8.7 percent on Monday, lifting the entire AI software complex. Wedbush analyst Dan Ives argued that AI investments are entering a phase where the data layer becomes central to monetisation, a thesis that dovetailed nicely with Palantir’s positioning.

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

Palantir’s own fundamentals give the rally a firm backbone. In the fiscal first quarter the company posted revenue of $1.633 billion, an 85 percent jump from a year earlier, with US commercial sales surging 133 percent to $595 million. GAAP operating income reached $754 million on a 46 percent margin, while adjusted operating income hit $984 million and a 60 percent margin. The firm closed 206 deals worth at least $1 million, including 47 worth more than $10 million.

Management lifted its full-year revenue guidance to a range of $7.650 billion to $7.662 billion, with US commercial revenue expected to exceed $3.224 billion—growth of at least 120 percent. Adjusted operating profit is seen at $4.440 billion to $4.452 billion, and free cash flow is forecast between $4.2 billion and $4.4 billion. For the second quarter, Palantir expects revenue of $1.797 billion to $1.801 billion and adjusted operating income of $1.063 billion to $1.067 billion.

The valuation story remains extreme, however. Over the course of the week the trailing price-to-earnings ratio swung from 149 to 179, while the forward multiple sits at 90. The stock’s relative strength index hit 86.3, deep in overbought territory. Despite the weekly gain, the shares still trade 23.7 percent below the November peak of €179.86 and are 6.23 percent lower on a year-to-date basis.

Palantir at a turning point? This analysis reveals what investors need to know now.

The twin catalysts from Snowflake and Dell have for now shifted the narrative back to secular AI demand. Gartner expects global AI software spending to grow roughly 60 percent in 2026, reaching about $453 billion, with total AI outlays of $2.59 trillion. For Palantir, the question is whether its own contract pipeline—bolstered by a remaining performance obligation of $4.92 billion in US commercial—can convert the sector buzz into sustained revenue acceleration. The next firm-specific catalyst will be the quarterly report; until then, the stock will live and die by the health of its partners’ order books.

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