A powerful rally swept through AI-adjacent software stocks on Thursday, May 28, after Snowflake reported quarterly results that pointed to explosive growth in enterprise artificial intelligence adoption. Palantir Technologies (PLTR) jumped 7.3% to around $142.74, while SoundHound AI (SOUN) closed 6.2% higher at $8.59. The catalyst was Snowflake’s announcement that its AI customer count had soared from 9,100 to 13,600 in a single quarter, driving product revenue up 34% and prompting the company to raise its full-year guidance by $180 million.
Palantir’s own first-quarter figures, reported on May 4, reinforced the narrative. Total revenue grew 85% year-over-year to $1.633 billion, with US commercial revenue—a key metric reflecting enterprise AI deployment—surging 133% to $595 million. Management raised full-year guidance by 10 percentage points to $7.65–$7.66 billion, implying 71% annual growth. Wall Street analysts have responded with a mean price target of $194.81 on PLTR, suggesting roughly 36% upside from the current level, though the stock remains 31% below its 52-week high of $207.18.
SoundHound AI benefited from the same tailwind, as the company sits at the intersection of voice AI and enterprise software. The move helped push back against the “SaaSpocalypse” narrative that had wiped roughly $2 trillion from software market values since late 2025. Snowflake’s CFO called the company’s Cortex Code a “step function change” in AI revenue potential, underscoring the idea that AI is driving consumption of existing platforms rather than displacing them.
For the crypto market, the rally in traditional AI stocks carries neutral short-term implications but reinforces the broader AI megatrend that has already fueled interest in blockchain-based AI projects. No single cryptocurrency was directly moved by these equity events, but the sustained enterprise demand for AI tools highlights the sector’s momentum, which could gradually benefit AI-focused tokens and protocols.
