Snowflake Shares Jump 36 Percent on Strong AI Demand
Snowflake shares rose 36% in premarket trading after the firm raised its annual revenue forecast and announced a $6 billion AI infrastructure deal with AWS. The company is seeing strong adoption of its generative AI tools and machine learning models as it integrates new technology across its platform.
SNOWFLAKE INC shares jumped 36% in premarket trading on Thursday after the data firm raised its annual revenue forecast. The gain added $20 billion to its market cap following a five-year, $6 billion AI infrastructure deal with AMAZON.COM INC. The rally signals a shift in investor sentiment toward enterprise software names previously hit by AI-related selling.
### Reversing the Software Sell-Off The stock had fallen 20% earlier this year as skepticism grew over whether data companies could monetize artificial intelligence. Hargreaves Lansdown analyst Matt Britzman said the jump shows how quickly sentiment turns when a company proves AI is helping the top line. Peers DATADOG INC - CLASS A and MONGODB INC rose 5.9% and 10.4%, respectively, following the results.
