Palantir Technologies Inc. saw its shares climb 9.2% to $156.54 on Friday, extending a two-day rally that marked its best performance since April 2025. The move came as artificial intelligence-focused software stocks regained investor attention following upbeat results from Dell Technologies and Snowflake.
The broader market provided a tailwind, with the S&P 500 and Nasdaq Composite each rising 0.2%, while the Dow Jones Industrial Average added 0.7%. Technology stocks led the advance after Dell posted a profit beat and raised its forecast on higher AI computing demand. Snowflake also reported strong results, including a $6 billion infrastructure deal with Amazon Web Services over five years. Snowflake's CEO noted that enterprises are shifting from AI pilots to "agentic" software tools that take action on data and enhance workflows.
Palantir's own results added fuel to the rally. The company raised its 2026 revenue outlook to between $7.65 billion and $7.66 billion, up from previous guidance. First-quarter revenue surged 85% year-over-year to $1.63 billion, beating LSEG estimates of $1.54 billion. U.S. commercial sales soared 133% to $595 million, while U.S. government revenue rose 84% to $687 million. CEO Alex Karp emphasized the strength of the U.S. market, stating that the business is "erupting."
The partnership between Dell and Palantir is a key narrative. The two companies are jointly selling an AI operating system for on-premises use, combining Palantir's Foundry and Ontology software with Dell's AI Factory and NVIDIA hardware. This setup aims to make scattered government and corporate data workable as a governed layer for AI agents.
Valuation remains a concern, with Palantir trading at roughly 176 times earnings, far above most peers. Such a high multiple leaves the stock vulnerable to any misstep, such as a lost deal or weaker demand. Additionally, the AI trade is becoming crowded, and if customers find cheaper alternatives from cloud providers or in-house tools, Palantir's premium could erode.
Friday's trading demonstrated that Wall Street is once again willing to pay up for companies turning AI spending into real sales. Palantir continues to be viewed as one of the purest AI bets, though it remains susceptible to sharp declines if sentiment shifts.
