Software stocks surged on Thursday after Snowflake announced a $6 billion investment in Amazon compute services and reported earnings that exceeded expectations, driven by AI momentum.
Snowflake’s shares soared 36%, marking their best day ever, as the company expands its use of Amazon’s in house chips for AI.
The company also beat Wall Street’s fiscal first quarter earnings and revenue estimates, with CFO Brian Robins highlighting AI tools like Cortex Code as a key driver of increased revenue potential.
He noted that AI is transforming internal operations by boosting productivity, reducing hiring needs, and increasing cloud spend.
Additionally, Snowflake raised its guidance, citing growing momentum for its AI powered solutions such as Snowflake Intelligence and Cortex Code.
Source (CNBC)
