Snowflake shares surge 30% as company raises annual sales outlook and signs $6B AWS deal

Snowflake shares surged almost 30% in late trading after the company raised its annual sales outlook and announced a $6 billion multiyear agreement tied to Amazon Web Services, according to Bloomberg. The deal underscores how demand for AI infrastructure is reshaping spending by major software and cloud companies, and it sent a strong signal to investors that Snowflake expects the trend to continue.

According to Bloomberg and TechCrunch, the agreement will give Snowflake access to Amazon’s cloud services and chips over five years, adding a major new layer to its AI strategy. Snowflake said stronger AI demand was helping drive its business, and the company’s improved outlook was the other key reason its shares jumped so sharply after the earnings update.