Palantir-Snowflake Partnership Could Power the Next AI Breakout

Key Points

• Palantir integrates its AI platform directly into Snowflake’s AI Data Cloud.
• The partnership clarifies that the two companies are complementary, not competitors.
• PLTR stock is consolidating ahead of earnings, with potential upside toward $200.

Investors have become accustomed to hearing about Palantir Technologies Inc. NASDAQ: PLTR striking new deals. However, its new partnership with Snowflake Inc. NYSE: SNOW is not ordinary.

Through this partnership, Palantir will essentially be integrating its Foundry and AIP (Artificial Intelligence Platform) directly into Snowflake’s AI Data Cloud. This will allow Snowflake’s enterprise customers to:

• Use Palantir’s AI models natively on Snowflake data without moving or replicating it.

• Build real-time decision intelligence systems using Palantir’s workflow and AI agent capabilities.

• Simplify governance and compliance, since data remains within Snowflake’s secure environment.

For Palantir, the partnership signifies a shift in its go-to-market strategy. The company extends its already vast reach into Snowflake’s 10,000+ enterprise customers. These customers already manage large datasets but are doing so without Palantir’s applied AI layer. For Snowflake, the partnership enhances its AI stack, providing a value proposition over competitors like Databricks.

It’s a win-win for Snowflake customers, who seek ways to operationalize AI directly where their data lives rather than moving it between platforms. However, it stands to be an even larger victory for PLTR shareholders.

Collaborators, Not Competitors

PLTR stock has risen more than 320% in the past twelve months. But Snowflake has been no slouch, posting a gain of over 100%. Some of this is due to the bullish sentiment in the tech sector. However, Palantir and Snowflake have often been viewed inaccurately as competitors.

This comparison is based on the fact that both companies target large enterprises with data-driven needs and talk about “data platforms.” Analysts assumed the two companies were competing for the same budgets.

This partnership shows that the two companies play complementary roles in the AI stack. Snowflake builds the foundation, and Palantir builds the intelligence layer that acts on top of it.

What This Deal Means for Palantir Shareholders

The partnership with Snowflake has three significant implications for investors. First, it helps to break the narrative that Palantir’s software is a “niche product” for government and complex industrial clients. This immediately expands the breadth of Palantir’s commercial channel and embeds its software into enterprises already spending on cloud data and analytics.

Second, it reaffirms the company’s leadership position in AI monetization. Chief executive officer (CEO) Alex Karp has frequently remarked that Palantir’s AIP platform makes AI useful for enterprise customers. This partnership supports that notion by making AIP close to a plug-and-play solution that could result in faster revenue recognition and higher margins.

Third, it enhances the opportunity cost associated with Palantir. The company has already demonstrated that its customer base is sticky. As more enterprises use the company’s software, the switching cost increases, as does Palantir’s recurring revenue.

PLTR Stock Is Consolidating Heading into Earnings

The next significant event for Palantir shareholders will be the company’s Q3 earnings report, which is scheduled for Nov. 3. Past performance doesn’t ensure future results, but the company will likely deliver a strong report.

If that’s the case, then PLTR stock will likely make a strong move higher. For now, the stock is in a consolidation pattern. The price has been around $181, and volatility is down after the stock’s bullish upturn in April.

PLTR stock has broken above its 50-day simple moving average at $172, forming a bullish base marked by higher lows. Volume is lower, supporting the idea that investors are waiting and waiting. The MACD line, which is positive but flat, with its lines converging, also supports this outlook.

This is classic pre-earnings positioning for the stock. A bullish post-earnings move could test resistance at the $182 to $185 range. If the stock breaks out above $188, analysts' forecasts for $200 or higher could be put into play.

A disappointing report could push the stock back to a level of support around $172 to $175.