Snowflake stock soars on growing enterprise AI demand, AWS partnership
Snowflake stock surged 38% in its best single-day performance after reporting fiscal Q1 revenue of $1.39 billion, a 33% year-over-year increase, driven by AI demand and a new $6 billion AWS partnership. The company highlighted AI as the strongest driver of revenue growth while expanding its collaboration with OpenAI, contributing to gains across tech-software ETFs like IGV.
Snowflake’s stock jumped 38% on Thursday, marking its best day ever, following stronger-than-expected fiscal first-quarter results. The company reported revenue of $1.39 billion, up 33% year-over-year, with AI products driving the strongest sequential product revenue growth in its history. The surge came alongside an expanded partnership with Amazon Web Services (AWS), including a multiyear, $6 billion agreement to accelerate global AI adoption. Snowflake also deepened its collaboration with OpenAI, reinforcing its position in the AI-driven enterprise software market. Analyst Dan Ives from Wedbush Securities raised his price target for Snowflake from $270 to $280 while maintaining an Outperform rating. He noted that the company is benefiting from early-stage AI monetization, following a period of uncertainty in software stocks tied to AI disruption fears. The broader iShares Expanded Tech-Software ETF (IGV) has rebounded 24% since mid-April as investors bet on AI-driven productivity gains. Peer ServiceNow also saw stock gains amid the broader tech-software sector rally. Snowflake’s performance reflects a shift from earlier this year, when AI-related concerns weighed on software stocks. The company’s AI-focused revenue growth and strategic partnerships have positioned it as a key player in the evolving enterprise AI landscape.
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