Shares of Palantir (NASDAQ:PLTR | PLTR Price Prediction) are up 10% in Friday morning trading, changing hands near $158. The pop follows a blockbuster quarter from Dell Technologies (NYSE:DELL), reported Thursday evening, that validated a high-profile partnership the two companies unveiled earlier this month.
Even with today’s rally, Palantir stock is still down 12% year to date (YTD), so this looks more like a recovery leg than a clean breakout. The catalyst is unusual because it lives inside someone else’s earnings report rather than Palantir’s own results.
A second tailwind comes from Snowflake (NYSE:SNOW). The data cloud specialist’s Wednesday earnings report kicked off a broader software and AI platform rally that carried into Friday’s open.
Dell’s AI Server Surge Validates the Partnership
Dell reported Q1 FY2027 revenue of $43.84 billion, beating estimates by 23% and growing 88% year over year (YoY). Non-GAAP EPS came in at $4.86 versus a $2.96 consensus, a 64% beat. AI-optimized server revenue jumped 757% YoY to $16.13 billion.
The company also booked $24.4 billion in AI orders during the quarter and raised full-year FY27 AI server revenue guidance to approximately $60 billion. DELL stock is up 29% today, trading near $409.
That matters for Palantir because the two companies unveiled a deep tie-up at Dell Technologies World on May 18. Palantir’s Foundry and AIP platforms are coming on-premises to the Dell AI Factory with NVIDIA (NASDAQ:NVDA), with the Ontology layer running on Dell ObjectScale and PowerFlex storage. Palantir Rubix and Apollo handle the zero-trust runtime layer, targeting sovereign, defense, and regulated workloads.
Snowflake Sparks a Broader Software Rally
Snowflake reported Q1 FY27 revenue of $1.39 billion, up 34% YoY, with non-GAAP EPS of $0.39 beating by 22%. The company raised its full-year product revenue guidance to $5.84 billion, a 31% growth pace, and disclosed more than 13,600 accounts using its AI capabilities.
CEO Sridhar Ramaswamy declared that Q1 marks “a clear inflection point” in Snowflake’s AI journey, positioning the platform as “the control plane for the Agentic Enterprise.” Dynatrace (NYSE:DT) and other observability and AI platform names are riding the same wave, with DT shares up 4% Friday.
Gartner Forecast Adds a Macro Tailwind
Underneath the day’s headlines sits a constructive top-down call. Gartner expects AI software spending to grow 60% to $453 billion in 2026, a forecast that frames Palantir’s AIP platform as a beneficiary of one of the largest enterprise software spending waves in years.
NVIDIA’s earlier Q1 earnings report reinforced that backdrop. CEO Jensen Huang asserted that the “buildout of AI factories, the largest infrastructure expansion in human history, is accelerating.” Palantir sits at the software layer of that exact stack, riding above Dell hardware and NVIDIA silicon.
What to Watch
Palantir stock trades at a P/E ratio of 203x, so the bull case still relies on durable AI software demand and continued execution on the Dell partnership. However, the bear case argues today’s move is sympathy buying that fades once the Dell euphoria cools.
Polymarket contracts assign a 98% probability that PLTR finishes Friday in the green, with crowd targets clustered around $150 to $156 into next week. Reddit sentiment on r/WallStreetBets recovered to a 75 bullish score by Thursday evening, after collapsing earlier in the week on a viral bearish post.
Cautious investors may want to watch for whether the gains hold into the close and whether Monday’s regular session brings follow-through buying or profit-taking. The next major Palantir-specific catalyst is the company’s own earnings report, but until then the stock will likely trade as a derivative of the broader AI infrastructure tape.
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