Palantir and Intel: Analyzing Stock Potential for the Remainder of 2026

Palantir Technologies and Intel Corporation have both recently reported strong earnings, but they operate in fundamentally different sectors of the tech industry. Palantir, known for its AI software solutions, reported a remarkable 92.8% year-over-year revenue increase for Q2 FY2026, reaching $1.94 billion. The company also exceeded earnings expectations with an adjusted EPS of $0.41, surpassing the estimated $0.28. Notably, Palantir's U.S. commercial revenue surged by 149% to $764 million, and its total contract value climbed to $3.37 billion. CEO Alex Karp described the quarter as “otherworldly,” emphasizing the growing demand for data sovereignty among enterprise clients who prefer to maintain control over their data.

In contrast, Intel is undergoing a significant transformation as it invests heavily in its foundry operations. The company reported Q2 revenue of $16.13 billion, marking a 25.4% increase, the strongest growth in over 15 years. Intel's non-GAAP EPS of $0.42 doubled the consensus estimate of $0.22. The company's Data Center and AI revenue rose by 59% to $6.26 billion, driven by strong demand for its Xeon processors. However, Intel's foundry division reported a loss of $2.1 billion during the quarter, highlighting the challenges it faces in its capital-intensive turnaround.

When comparing the two companies, investors must consider where the next dollar in AI spending will go: towards software solutions like those offered by Palantir or towards hardware and silicon shipments from Intel. Palantir's high price-to-sales ratio of over 70x suggests that the stock is priced for continued exceptional performance, while Intel's forward multiple of 72x reflects its current challenges and the potential for recovery.

Analysts have been quick to adjust their forecasts for both companies. Intel's FY2026 EPS consensus has risen significantly, with 32 upward revisions in the past month. Meanwhile, Palantir's stock is nearing its analyst target, which could limit its upside potential. Despite Palantir's impressive track record of beating earnings estimates, its stock has shown a tendency to decline after such announcements, indicating a potential valuation concern.

While Palantir boasts a superior adjusted operating margin of 62% and a Rule of 40 score of 155%, which are indicative of a strong business model, the upcoming months may favor Intel due to its improving fundamentals and market conditions. The tight supply of server CPUs and Intel's advancements in its foundry operations could create significant upside potential for the company. However, any further deterioration in Palantir's performance or widening losses in Intel's foundry could alter this outlook.