Palantir shares surge past 100-day moving average on Dell infrastructure boom

Palantir Technologies shares rose on May 29, breaking above their 100-day moving average following a robust earnings report from Dell Technologies. The rally was underpinned by Dell’s announcement of a record $51.3 billion backlog, which signals intense enterprise demand for artificial intelligence infrastructure. Market analysts view this hardware expansion as a precursor to increased software spending, a trend that directly benefits Palantir’s operations.

The correlation between infrastructure and software deployment is central to the current market narrative. As hyperscalers and enterprises accelerate AI buildouts, the subsequent phase involves utilising the acquired compute power. Idle AI servers represent significant operational costs without the software platforms required to operationalise data and extract business value. Palantir’s technology sits at this critical juncture, bridging the gap between raw hardware and actionable enterprise insights.

Historically, software expenditure follows infrastructure investment with a lag of two to four quarters. Dell’s substantial backlog suggests that the hardware layer is filling rapidly, providing a strong vote of confidence for Palantir’s pipeline heading into the latter half of 2026. This dynamic positions Palantir as a key beneficiary in the AI stack, capitalising on the demand generated by the underlying hardware buildout.

Fundamentally, Palantir’s own financial performance reinforces the bullish outlook. The company reported first-quarter revenue of $1.63 billion, representing an 85 per cent year-on-year increase. This marks the fastest sales growth the company has achieved since its public listing in 2020. Additionally, Palantir raised its full-year revenue guidance to at least $7.65 billion, reflecting management’s confidence in sustained demand.

The company also reported a “Rule of 40” score of 145 for the latest quarter, highlighting its rapid growth trajectory. Despite an exceptionally strong 2025, Palantir shares have declined nearly 14 per cent from their early January high. However, Wall Street maintains a “Moderate Buy” consensus rating, with a mean price target of nearly $195, implying potential upside of more than 25 per cent. Seasonal trends also offer support, with historical data showing Palantir gaining nearly 8 per cent on average in June.