Palantir Vs. Intel: Choose One for The Rest of 2026

PLTR jumped 93% in revenue YoY, but INTC's 142% YTD gain and 32 upward EPS revisions make Intel the stronger pick through 2026.

Palantir's 73x price-to-sales and stock already near its $192 analyst target create a valuation ceiling that punishes even strong beats.

Intel Foundry still bled $2.1 billion in Q2, but tight server supply and a Xeon 6 ramp create asymmetric upside if yield milestones hold.

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Palantir ( NASDAQ: PLTR ) and Intel ( NASDAQ: INTC ) both closed Q2 FY2026 with headline beats, yet operate in opposite worlds. Palantir sells the AI software layer at software margins. Intel is deep into a capital-heavy foundry turnaround. Comparing them is a question about where the next AI dollar lands: software rents or silicon shipments.

AI Software Rents Are Carrying One. Fabs Are Carrying the Other.

Palantir posted Q2 revenue of $1.94 billion, up 92.8% year over year, with adjusted EPS of $0.41 against a $0.28 estimate. U.S. commercial revenue jumped 149% to $764 million, and total contract value hit $3.37 billion. CEO Alex Karp called the quarter "otherworldly" and framed the story around "AI sovereignty", meaning enterprise buyers of Foundry and AIP want to keep control of their own data rather than feed it into someone else's model. That pitch is landing with paying customers.

Intel operates in a fundamentally different mode. Revenue reached $16.13 billion, up 25.4% and the strongest growth in more than 15 years. Non-GAAP EPS of $0.42 doubled the $0.22 consensus. Data Center and AI revenue climbed 59% to $6.26 billion, Xeon 6 is ramping into a supply-constrained server market, and CEO Lip-Bu Tan told investors "server CPU demand continues to far outpace available supply." Intel Foundry still bled $2.1 billion in the quarter.

Palantir's price-to-sales north of 70x leaves almost no room for a merely good quarter. Intel trades on a forward multiple of 72x that reflects depressed near-term earnings.

Estimate Revisions Are Doing the Talking

Analysts have moved fast on Intel. The FY2026 EPS consensus sits at 1.5129 versus 1.0859 ninety days ago, with 32 upward revisions in the last 30 days. Palantir's estimates are also rising, but its stock already sits near $186, close to the $191.68 analyst target. Intel's target of $114.88 sits well above its $89.51 close.