Oracle’s (ORCL) latest earnings made clear that the AI boom is not slowing down. The company revealed a massive $455 billion backlog for cloud and AI servers, sending its stock and much of the AI sector higher. While most attention went to the size of Oracle’s contracts, one quieter beneficiary could be Palantir (PLTR).
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The data and AI software company has been building partnerships with Oracle while also pushing its own platform into more government and commercial clients. This combination means Palantir stock could see a stronger boost from Oracle’s breakout than many investors realize.
Oracle’s AI Backlog Sparks Investor Confidence
Oracle’s Fiscal first-quarter results missed Wall Street’s profit and revenue targets, but investors barely cared. What really stole the show was the size of the company’s contracted backlog, which tripled from the prior quarter to $455 billion. This figure shows the scale of demand for AI computing power, particularly for servers running in the cloud.
Even as traditional software growth slows, the message from Oracle is that enterprise customers are spending aggressively to get AI infrastructure in place. The cloud providers, hardware makers, and AI software companies connected to that demand are likely to ride the same momentum.
Palantir Taps into Oracle’s Cloud Momentum
Palantir has been steadily deepening its ties with Oracle. Last year, Palantir signed a deal to deliver its software through Oracle’s cloud platform, bringing its Artificial Intelligence Platform to a broader audience of enterprise clients. This move positioned Palantir as one of the few software firms that can directly benefit as Oracle scales up its AI server business.
The connection works both ways. As Oracle builds out its infrastructure, it needs compelling software partners that show customers what AI tools can actually do. Palantir is already well known for turning raw data into actionable insights. The company has managed to do this across many industries ranging from airlines to oil majors to defense. Being bundled with Oracle’s cloud services could give Palantir exposure to new clients it might not have reached on its own.
Wall Street Sees Room for Palantir to Run
Analysts have been mixed on Palantir in recent weeks, pointing to its lofty valuation. Shares trade at more than 200 times projected earnings, which makes some investors nervous even in a hot AI market. Yet bullish firms like Bank of America argue that Palantir’s real-world adoption separates it from other AI names that are long on hype but short on results.
Oracle’s breakout could strengthen that argument. If customers continue to pour billions into AI servers and data platforms, the need for software that organizes, analyzes, and operationalizes that data only grows. Palantir’s track record with clients like American Airlines (AAL) and BP (BP) shows it already has a foothold in that demand cycle.
The Bigger Picture for Palantir Stock
Palantir’s stock has been up and down this year, surging earlier this year before losing steam in August. The stock is now recovering, up more than 3% on Wednesday after Oracle’s earnings helped lift the broader AI trade. For long-term investors, the Oracle news is a reminder that Palantir’s growth is also tied into the growth engines of much larger firms that are spending billions to expand the entire ecosystem.
If Oracle’s backlog proves to be just the start of an AI spending boom, Palantir’s role as a software partner could help it stand out as a silent winner. The stock may not move as fast as the chipmakers, but it could deliver lasting gains as AI adoption spreads across industries.
Is Palantir a Good Stock to Buy Now?
Palantir stock (PLTR) currently carries a Hold rating based on 20 analyst reviews in the past three months. Of those, five analysts recommend a Buy, 13 suggest a Hold, and two rate it a Sell.
The average 12-month PLTR price target sits at $155.39, which points to a downside of about 7.2% from the latest close.
