Snowflake explodes on the stock exchange: record profit and $6 bi agreement with Amazon boost shares

Snowflake's shares jumped 35% on Friday after the company released results of the first quarter that exceeded profit and revenue estimates, raise annual projection and reveal a plan to spend $6 billion in computing infrastructure for artificial intelligence at Amazon Web Services (AWS). Growth is driven by AI solutions such as Cortex Code, which automates data analysis with natural language.

Why did Snowflake jump 35% in the middle of the AI revolution?

Snowflake reported revenue of US$890 million in the quarter, a 27% year-to-year increase, and an adjusted profit per share of US$0.62 — both above consensus. The company also raised the revenue forecast for the fiscal year from 2026 to US$ 3.85 billion, before previous expectation of US$ 3.72 billion. The market reacted enthusiastically to the new agreement with AWS: it is $6 billion in cloud computing spending commitments over five years, focused on workloads of AI generative and machine learning.

How is Cortex Code and Snowflake's AI changing the game?

The main engine of growth was Cortex Code, a tool that allows analysts to write complex SQL queries using Portuguese or English commands. It reduces data preparation time from hours to minutes and already accounts for 15% of Snowflake's new recipes. The company also expanded the portfolio with Cortex FINETUNING, which adapts AI models to proprietary data without the need for machine learning engineers.

What does the $6 billion deal with Amazon mean for Snowflake and AI?

The multibillion-dollar pact with AWS is the largest ever signed by Snowflake. It guarantees startup priority access to Amazon's most powerful cloud servers, including Trainium2 GPUs, optimized for language model training. For AWS, it's a win over competitors like Google Cloud and Microsoft Azure, who also wooed Snowflake. The movement aligns with a sector trend: large investments in AI infrastructure, such as IBM's $5 billion project with Red Hat in open source with AI.

Frequently Asked Questions about Snowflake, AI and Amazon

Why did Snowflake's shares go up so high?

Because the company exceeded profit and revenue expectations in the first quarter, it raised the annual projection and announced a $6 billion agreement with Amazon for AI-focused computing, signaling strong demand for its data analysis products.

What is Cortex Code?

It is a Snowflake Generative IA tool that converts questions into natural language into SQL queries, accelerating data analysis and reducing dependence on specialized programmers.

How does the agreement with AWS impact the cloud market?

It reinforces Amazon's position as the leading infrastructure provider for AI workloads, as well as guaranteeing Snowflake priority access to high-performance hardware, intensifying competition with Google Cloud and Microsoft Azure.

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Source: CNBC — Snowflake rallies after learnings beat and Amazon cloud deal