A banner for Snowflake Inc. is displayed at the New York Stock Exchange to celebrate the company's initial public offering on Sept. 16, 2020.
MongoDB's stock just closed out its best week on record, leading a rally in enterprise technology companies that are seeing tailwinds from the artificial intelligence boom.
In addition to MongoDB's 44% rally, Pure Storage soared 33%, its second-sharpest gain ever, while Snowflake jumped 21%. Autodesk rose 8.4%.
Since generative AI started taking off in late 2022 following the launch of OpenAI's ChatGPT, the big winners have been Nvidia , for its graphics processing units, as well as the cloud vendors like Microsoft , Google and Oracle , and companies packaging and selling GPUs, such as Dell and Super Micro Computer .
For many cloud software vendors and other enterprise tech companies, Wall Street has been waiting to see if AI will be a boon to their business, or if it might displace it.
Quarterly results this week and commentary from company executives may have eased some of those concerns, showing that the financial benefits of AI are making their way downstream.
MongoDB CEO Dev Ittycheria told CNBC's "Squawk Box" on Wednesday that enterprise rollouts of AI services are happening, but slowly.
"You start to see deployments of agents to automate back office, maybe automate sales and marketing, but it's still not yet kind of full force in the enterprise," Ittycheria said. "People want to see some wins before they deploy more investment."
Revenue at MongoDB, which sells cloud database services, rose 24% from a year earlier to $591 million, sailing past the $556 million average analyst estimate, according to LSEG. Earnings also exceeded expectations, as did the company's full-year forecast for profit and revenue.