Snowflake Shares Surge 38% to 4-Month High After Bolstered Sales Outlook and Amazon Partnership

Snowflake Surges 38% After Raising Revenue Forecast and Announcing $6 Billion AI Infrastructure Deal with Amazon Web Services

Shares of Snowflake, a data analytics firm, skyrocketed on Thursday, 28 May, after the company raised its annual product revenue forecast and announced a five-year AI infrastructure deal worth $6 billion with Amazon Web Services (AWS). The stock opened the session with a massive gap-up at $237 per share, a significant increase from the previous close of $175.26.

The momentum continued throughout the session, with the stock hitting a four-month high of $240 apiece, marking a 38% jump from Wednesday's closing level. If the gains sustain through the close, today's rally would mark the stock's biggest single-day surge in five years.

As part of its Q1 results, Snowflake also announced an additional $6 billion commitment to Amazon Web Services over the next five years. The agreement includes the use of Amazon's general-purpose Graviton processor chips, which compete with Intel Corp.'s offerings. Snowflake expects the $6 billion commitment to reflect the "accelerating enterprise demand for AI and data workloads running on AWS."

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The company said the agreement will enable it to secure deep volume discounts strategically designed to protect and expand long-term gross margins. By anchoring future workloads to Amazon's custom silicon and next-generation infrastructure, Snowflake aims to make it easier for enterprises to bring AI directly to governed data, allowing them to move faster, operate with greater clarity, and create measurable impact at scale.

Snowflake's earnings and the strong investor response come at a time when the software sector has been under pressure from the rapid rise of AI-focused companies over the past year. Analysts believe the AWS partnership announcement may have played a bigger role in driving the stock higher than the quarterly earnings themselves.

For the fiscal first quarter ended 30 April, Snowflake reported a 34% rise in product revenue to $1.33 billion, ahead of analysts' average estimate of $1.27 billion. Remaining performance obligations, a key measure of bookings, stood at $9.21 billion, slightly below analysts' expectations of $9.43 billion.

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The company also raised its full-year FY27 product revenue guidance to $5.84 billion and lifted its non-GAAP operating margin guidance to 13.5%. The updated outlook compares with its earlier forecast of $5.66 billion issued in February and came ahead of analysts' average estimate of $5.68 billion.

Snowflake's shares have recovered 76% in May, bringing much-needed relief to shareholders after the stock had closed lower in each of the previous six months. During that losing streak, the stock had declined nearly 50%, but it has now recovered all of those losses in May alone, highlighting the sharp turnaround in investor sentiment. From its yearly low of $118.30, the stock has rebounded 103%, based on today's intraday high.