GoKawiilSoftware stocks popped on Thursday after Snowflake said it plans to spend $6 billion on compute from Amazon and topped earnings estimates on artificial intelligence momentum.
Shares of the software maker surged 37% and headed for its best day ever. The company is expanding its use of Amazon's in-house chips for AI.
Along with the announcement, Snowflake topped Wall Street's fiscal first quarter adjusted earnings per share and revenue expectations.
Finance chief Brian Robins told analysts on Wednesday that AI tools such as Cortex Code are driving a "step function change" in the company's AI revenue potential.
"AI is only transforming how we operate internally, enabling greater productivity through a combination of slower hiring and more cloud spend," he said.
Snowflake also boosted guidance on growing momentum toward its AI-powered tools, including Snowflake Intelligence and Cortex Code.