Snowflake Stock Rises 36% — Company Formalizes $6 Billion Agreement with AWS
Claude and the data analytics company showed a 36% surge in pre-market trading following strong financial results and a $6 billion AI infrastructure agreement with Amazon Web Services (AWS).
If this growth sustains, the company's market capitalization will increase by more than $20 billion.
Snowflake also improved its annual product revenue forecast, which significantly shifted investor sentiment. Despite this, the company's stock remains down approximately 20% since the beginning of the year.
According to analysts, significant skepticism existed in the market due to concerns that AI technologies would replace traditional software businesses. However, Snowflake demonstrated that artificial intelligence is already genuinely driving the company's revenue growth.
The company is actively developing AI products, including Cortex Code and Snowpark, which help companies create generative AI applications and leverage machine learning models.
The partnership with AWS will enable Snowflake to strengthen its AI infrastructure, expand integrations, and assist clients in scaling AI projects.
Following the results, at least 22 investment banks and research firms raised their price targets for Snowflake. Analysts believe the company is strengthening its position in competition with rivals, including Databricks and Google BigQuery.
