The stock of an artificial intelligence (AI) data cloud company is on the up and up after a crushing second-quarter performance.
In its latest earnings report, Snowflake (SNOW) blasts past Wall Street’s expectations, reporting $1.09 billion in product revenue in the quarter ending July 31st, up 32% year-over-year, and raising its full-year forecast to $4.395 billion.
But remaining performance obligations swelled to $6.9 billion, a 33% jump that highlights demand visibility.
CEO Sridhar Ramaswamy says thousands of customers are now betting their business on Snowflake, with more than 6,100 accounts using its AI tools every week.
“Customers love that our platform is easy to use, connected to enable fluid access to data wherever it sits, and trusted by companies of all sizes and industries. We have an enormous opportunity ahead as we continue to empower every enterprise to achieve its full potential through data and AI.”
SNOW exploded more than 14% in extended trading, hitting roughly $228 a share after closing at $200.39. The move signals a decisive rotation toward data infrastructure firms as investors search for new ways to ride the artificial intelligence wave.
Other AI data platforms are on the move as well. MongoDB (MDB) ripped higher by more than 20% in after-hours after its own beat-and-raise quarter, while Palantir (PLTR) added nearly 5% following its results earlier this month despite warnings that valuations were running hot.
Meanwhile, chipmakers like Nvidia reported historic numbers this week only to see their stock trade flat. The market’s reaction suggests investors are broadening out from silicon into the software and data layers that make AI usable at scale.
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