Snowflake shares surge 34 per cent on earnings beat and $6 billion AWS commitment
Earnings that exceeded market expectations drove the stock higher, while the new spending deal underscores the industry shift from AI training to daily automation and inference.
Snowflake shares climbed 34 per cent following the release of financial results that surpassed market expectations. The cloud data platform provider also announced a significant expansion of its relationship with Amazon Web Services, committing to spend $6 billion on the cloud infrastructure provider over a five-year period.
The agreement deepens the partnership between the two technology firms, with Snowflake specifically targeting the use of Amazon’s Arm-based Graviton chips. These processors are increasingly deployed for artificial intelligence inference and agent-based tasks, reflecting a broader industry transition where AI workloads are shifting from initial training phases to daily usage and automation.
Snowflake’s adoption of Cortex AI, a tool that enables enterprises to interact with data through natural language queries and automated reporting, is a primary driver behind the increased cloud spending. The company’s expenditure on AWS doubled in the 2025 calendar year, reaching $2 billion, highlighting the rapid acceleration in demand for CPU processing power required to support these automated workflows.
The announcement comes as Amazon reports strong financial performance, having recorded fourth-quarter fiscal 2025 revenue of $213.4 billion, representing a 12 per cent year-on-year increase. Operating income for the quarter stood at $25 billion. This financial strength has contributed to a period of significant investor interest, with Amazon shares rising 31.9 per cent over the month prior to these reports, driven by institutional buying.
The surge in Snowflake’s share price and its substantial capital commitment to AWS illustrate the growing economic importance of efficient processing power in the AI sector. As enterprises integrate more sophisticated data tools, the reliance on specialised hardware like Graviton chips is expected to remain a critical component of cloud infrastructure strategies.
