What Happened?

Shares of data analytics company Palantir Technologies (NASDAQ:PLTR) jumped 8.5% in the afternoon session after its partnership with Dell Technologies was validated by a strong quarterly earnings report from the tech giant, boosting investor confidence in Palantir’s role in AI infrastructure.

Dell’s impressive growth in AI server revenue reinforced the value of Palantir’s software platforms, which are integrated into the Dell AI Factory. The positive sentiment was part of a broader rally in software and AI stocks, which was kicked off by strong results from another Palantir partner, Snowflake. Additionally, investors reacted positively to reports that the U.S. government is considering initiatives to strengthen the domestic drone industry, a sector where Palantir could also benefit.

The shares closed the day at $156.36, up 9.3% from the previous close.

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What Is The Market Telling Us

Palantir Technologies’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 7.3% on the news that SaaS peer Snowflake reported impressive first quarter results.

Snowflake’s declaration of a “clear inflection point” in enterprise AI demand provides independent corroboration of the exact thesis Palantir anchored its entire Q1 narrative to: that enterprises are no longer experimenting with AI but genuinely deploying it in production on their own data, at scale. Palantir and Snowflake occupy adjacent but different layers of the enterprise AI stack: Snowflake structures and stores the governed data, Palantir’s AIP builds the ontology and decision layer that operates on top of it.

When SNOW reported AI accounts growing from 9,100 to 13,600 in a single quarter it confirmed from a completely separate vantage point that the enterprise AI adoption wave Palantir had already priced into its guidance is real.

Palantir’s own May 4 print was exceptional by any measure: total revenue grew 85% to $1.633 billion, US revenue grew 104% to $1.282 billion, US commercial revenue grew 133% to $595 million for Q1, and the full-year guidance was raised 10 percentage points to $7.65–$7.66 billion implying 71% growth, with US commercial guidance raised to at least 120% for the full year. The investor thesis that AI spending was staying at the infrastructure layer rather than converting into enterprise software revenue, which some analysts have called the “AI Ghost Trade” discount, is harder to defend when both SNOW and PLTR are posting the strongest results in their histories simultaneously.