Dell's AI Server Explosion Lifts Palantir 9% — Now All Eyes on Wednesday's Governance Battle

Palantir shares rally 9% after Dell's 757% AI server revenue surge validates its platform. Ahead of June 3 AGM, Norway's $2.3T fund backs shareholder proposals for human rights audit and political spending disclosure.

Palantir Technologies shares staged their biggest single-day rally in a year on Friday, jumping more than 9% to close at €134.18. But the catalyst came from outside the company’s own walls: Dell Technologies delivered a blockbuster AI-server quarter that validated the investment case for Palantir’s software platform.

Dell’s first-quarter results for fiscal 2027 showed AI-server revenue of $16.13 billion — a staggering 757% increase from a year earlier. The company booked $24.4 billion in AI orders during the quarter and raised its full-year revenue forecast to roughly $60 billion. For Palantir, which deepened its partnership with Dell at the Dell Technologies World conference in May, the numbers are more than a feel-good story. The two companies are integrating Palantir’s Foundry and AIP platforms into the Dell AI Factory alongside NVIDIA hardware, making Dell’s performance a direct proxy for Palantir’s addressable market.

Snowflake, another Palantir partner, added to the AI tailwinds with a 33% revenue gain to $1.39 billion and an upgraded annual outlook. More than 13,600 customers now use Snowflake’s AI tools. Gartner forecasts global AI software spending will jump roughly 60% this year to about $453 billion — a figure that underscores the demand environment Palantir and its allies are tapping.

Yet despite Friday’s surge, Palantir’s stock remains 6.23% in the red year-to-date and trades about 25% below its all-time high. The technical support levels sit at $140.06 and $139.26, according to analysts cited in regulatory filings.

Governance pressure intensifies ahead of AGM

The rally sets the stage for a pivotal week. On Wednesday, June 3, Palantir holds its annual shareholder meeting — virtually, at 4 p.m. German time — and the agenda includes a pair of contentious shareholder proposals that have drawn fire from Norway’s sovereign wealth fund.

Norges Bank Investment Management (NBIM), the world’s largest sovereign fund with $2.3 trillion in assets, announced it will vote in favor of proposals demanding a human-rights risk audit and disclosure of political spending — both of which Palantir’s board has formally opposed. The fund rarely wades into activist campaigns, and its stance carries unusual weight.

The pressure doesn’t stop with Oslo. On May 14, a group of 34 investors representing more than $336 billion in assets sent a letter to Palantir’s board, accusing the company of insufficient due diligence and transparency around the use of its products by U.S. government clients. In February, the New York City Comptroller called for an independent risk analysis of Palantir’s work with the Department of Homeland Security and Immigration and Customs Enforcement. ABP, the largest Dutch pension fund, has already divested its Palantir holdings, and pension funds in several U.S. states are being urged to follow suit.

Proposal 5, the most closely watched item, specifically targets Palantir’s contracts with ICE and DHS. Civil-rights groups, privacy activists and journalists have alleged that the company’s systems enable health-data surveillance, erode privacy and undermine legal due process.

Business momentum shows no signs of slowing

The governance debate runs parallel to a period of exceptional operational performance. Palantir reported first-quarter adjusted earnings of $0.33 per share, beating the $0.28 consensus, while revenue of $1.63 billion topped estimates of $1.54 billion — growth of roughly 85% year-over-year. It was the eleventh consecutive quarter of accelerating revenue growth.

U.S. revenue surged 104% to $1.28 billion, and commercial U.S. revenue rose 133% to $595 million. The customer base expanded 31% to 1,007 clients, and remaining deal value stood at $11.8 billion. Adjusted free cash flow hit $925 million.

Management guided for second-quarter revenue of $1.8 billion, well above the $1.68 billion analyst consensus, and raised its full-year 2026 forecast to a range of $7.65 billion to $7.66 billion — a 71% jump from 2025.

Insiders stay on the sell side

The stellar numbers have not stopped top executives from cashing out. CEO Alexander Karp sold roughly 397,744 shares on May 20 for about $54 million, according to SEC filings. Over the past five years, Karp has executed 37 transactions — all sales, no purchases. In the last three months alone, Palantir insiders have sold $422 million worth of stock, with zero insider buying.

The next major test after Wednesday’s meeting comes on August 3, when Palantir reports second-quarter earnings. Friday’s Dell-fueled rally, while impressive, remains a rebound rather than a breakout unless the stock can hold its gains through the governance headlines and prove that the AI-driven growth story has legs of its own.