Palantir Stock Jumps as Snowflake Results Revive Software Rally

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•  29 May 2026
 

$PLTR Palantir Technologies surged in Wall Street trading after strong results from Snowflake reignited investor interest in software companies tied to artificial intelligence growth. The move marked a broad recovery across software stocks after months of concern that AI tools could weaken the traditional SaaS business model. Palantir climbed about 9%, putting the stock on track for its strongest daily gain since April 2025, while extending its two day advance to nearly 18%. The rally reflected renewed earnings momentum and growing institutional flows back into software names exposed to AI infrastructure and enterprise deployment.

The immediate catalyst did not come from Palantir itself but from Snowflake, whose quarterly results strengthened the view that some software companies are beginning to convert AI adoption into measurable revenue growth. Snowflake raised guidance and announced a new $6 billion agreement with Amazon tied to cloud services and chip usage. Management highlighted Cortex Code, its AI based coding platform, as a major contributor to the strong quarter. HSBC upgraded the stock from hold to buy following the report, while Deutsche Bank raised its target price and pointed to accelerating customer consumption trends.

The positive reaction quickly spread across the broader software sector, including Palantir, as investors reassessed whether AI may become a growth accelerator rather than a disruption threat for established software vendors. Earlier this year, the sector faced heavy pressure as investors questioned whether generative AI tools could replace existing SaaS products and compress future growth rates. Even after more than doubling during 2025, Palantir remained down roughly 12% year to date while the Nasdaq gained about 16%. The latest move signals a possible shift in positioning as investors search for software companies capable of sustaining multiple expansion through AI monetization.

Dell also contributed to the improving sentiment around AI infrastructure after reporting strong demand tied to data centers and servers. Earlier this month, Dell partnered with Palantir on an enterprise AI system designed for healthcare, defense, and industrial customers. The combination of recovering software sentiment and expanding infrastructure demand creates a favorable backdrop for the company as it pushes beyond data analytics into operational AI deployment for complex enterprise environments. Investors are now focused on whether the recent rebound represents the beginning of a sustained rerating cycle or only a temporary technical recovery following months of sector weakness.

Research firm 22V Research said the latest earnings reports weaken the argument that software stocks remain an obvious short trade. Analysts noted that parts of the sector may ultimately benefit from AI adoption instead of being displaced by it. At the same time, the firm cautioned that software companies have not yet fully demonstrated immunity to technological disruption, leaving uncertainty around long term growth durability and future valuation support. Palantir remains on the firms list of software companies benefiting from improving earnings expectations and increasingly constructive management sentiment.

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