{"id":30887,"date":"2026-05-27T20:31:16","date_gmt":"2026-05-27T20:31:16","guid":{"rendered":"https:\/\/trendifyhubusa.com\/index.php\/2026\/05\/27\/snowflake-soars-25-on-earnings-beat-will-spend-6b-on-amazon-cloud\/"},"modified":"2026-05-27T20:31:16","modified_gmt":"2026-05-27T20:31:16","slug":"snowflake-soars-25-on-earnings-beat-will-spend-6b-on-amazon-cloud","status":"publish","type":"post","link":"https:\/\/trendifyhubusa.com\/index.php\/2026\/05\/27\/snowflake-soars-25-on-earnings-beat-will-spend-6b-on-amazon-cloud\/","title":{"rendered":"Snowflake soars 25% on earnings beat, will spend $6B on Amazon cloud"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108206045\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Sridhar Ramaswamy, CEO of Snowflake, poses in front of the company signage outside of the New York Stock Exchange on Sept. 30, 2025. <\/p>\n<p>NYSE<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/AMZN\/\" target=\"_blank\" rel=\"noopener\">Amazon<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> said Wednesday that its cloud division has landed a $6 billion spending commitment from <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\"><a href=\"https:\/\/www.cnbc.com\/quotes\/SNOW\/\" target=\"_blank\" rel=\"noopener\">Snowflake<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, which includes the use of the company&#8217;s custom silicon and chips for <a href=\"https:\/\/www.cnbc.com\/ai-artificial-intelligence\/\" target=\"_blank\" rel=\"noopener\">artificial intelligence<\/a>. <\/p>\n<p>Snowflake&#8217;s purchase of services and technology from Amazon Web Services will occur over five years, according to a press release about the agreement. Snowflake intends to expand its use of Amazon&#8217;s Graviton general-purpose chips, as well as cloud-based graphics processing units for AI.<\/p>\n<p>It&#8217;s the latest sign that AWS is gaining momentum in AI as clients turn to the market-leading cloud for more advanced technologies. In April, Claude creator Anthropic said it aims to spend <a href=\"https:\/\/www.cnbc.com\/2026\/04\/20\/amazon-invest-up-to-25-billion-in-anthropic-part-of-ai-infrastructure.html\" target=\"_blank\" rel=\"noopener\">over $100 billion<\/a> on AWS over a decade. Amazon also has a deal with OpenAI.<\/p>\n<p>Both of its agreements with the AI model companies include an equity investment, while the Snowlfake deal does not. Snowflake, which <a href=\"https:\/\/www.cnbc.com\/2020\/09\/16\/snowflake-snow-opening-trading-on-the-nyse.html\" target=\"_blank\" rel=\"noopener\">went public<\/a> in 2020, has a market cap of just over $60 billion, and has long relied on AWS. <\/p>\n<p>Snowflake rose as much as 30% in extended trading after it announced strong<a href=\"https:\/\/investors.snowflake.com\/news\/news-details\/2026\/Snowflake-Reports-Financial-Results-for-the-First-Quarter-of-Fiscal-2027\/default.aspx\" target=\"_blank\" rel=\"noopener\"> results<\/a> for its fiscal first quarter, which ended on April 30. The company reported 39 cents in adjusted earnings per share on $1.39 billion in revenue, up 33% year over year. Analysts polled by LSEG had expected 32 cents per share and $1.32 billion in revenue. <\/p>\n<p>Guidance was also strong, as Snowflake called for a 12.5% fiscal second-quarter adjusted operating margin on $1.415 billion to $1.420 billion in product revenue. Analysts surveyed by StreetAccount had been looking for a 11.9% margin, with $1.37 billion in product revenue.<\/p>\n<p>Snowflake also said it was acquiring AI startup <a href=\"https:\/\/www.snowflake.com\/en\/news\/press-releases\/snowflake-announces-intent-to-acquire-natoma-providing-secure-connectivity-for-the-agentic-enterprise\/\" target=\"_blank\" rel=\"noopener\">Natoma<\/a> for an undisclosed sum.<\/p>\n<p>At the time of Snowflake&#8217;s IPO, it disclosed an amended deal with an unnamed cloud provider for $1.2 billion in spending over five years, with $350 million coming in the final year. The provider was Amazon, a Snowflake spokesperson told CNBC. In 2023, the agreement climbed to $2.5 billion.<\/p>\n<p>The new $6 billion arrangement implies an average annual spend of $1.2 billion.<\/p>\n<\/div>\n<div class=\"group\">\n<p>AWS announced its first<a href=\"https:\/\/www.cnbc.com\/2018\/11\/26\/aws-launches-arm-based-server-chips.html\" target=\"_blank\" rel=\"noopener\"> Arm-based Graviton<\/a> chip in 2018, and it remains the company&#8217;s most successful custom chip to date. Snowflake first talked about adopting Graviton in 2022. <\/p>\n<p>Snowflake also has close ties to <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-9\"><a href=\"https:\/\/www.cnbc.com\/quotes\/NVDA\/\" target=\"_blank\" rel=\"noopener\">Nvidia<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, following a partnership <a href=\"https:\/\/nvidianews.nvidia.com\/news\/snowflake-and-nvidia-team-to-help-businesses-harness-their-data-for-generative-ai-in-the-data-cloud\" target=\"_blank\" rel=\"noopener\">announced<\/a> in 2023. In November, Snowflake touted <a href=\"https:\/\/www.businesswire.com\/news\/home\/20251118211131\/en\/Snowflake-Supercharges-Machine-Learning-for-Enterprises-with-Native-Integration-of-NVIDIA-CUDA-X-Libraries\" target=\"_blank\" rel=\"noopener\">updates<\/a> to simplify the process of running AI workloads on Nvidia GPUs.<\/p>\n<p>The deal marks yet another large tech company choosing custom <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-12\"><a href=\"https:\/\/www.cnbc.com\/quotes\/ARM\/\" target=\"_blank\" rel=\"noopener\">Arm<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>-based processors over those based on traditional x86 architecture.<\/p>\n<p>For decades, server chips have been built on the x86 instruction sets pioneered by <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-13\"><a href=\"https:\/\/www.cnbc.com\/quotes\/INTC\/\" target=\"_blank\" rel=\"noopener\">Intel<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> in the 1970s and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-14\"><a href=\"https:\/\/www.cnbc.com\/quotes\/AMD\/\" target=\"_blank\" rel=\"noopener\">Advanced Micro Devices<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> a couple of decades later. Arm&#8217;s alternative power-efficient architecture went mainstream when <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-15\"><a href=\"https:\/\/www.cnbc.com\/quotes\/AAPL\/\" target=\"_blank\" rel=\"noopener\">Apple<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> adopted it for the first iPhone in 2007. But it was Amazon that brought Arm chips into data centers with Graviton. Cloud rivals <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-16\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GOOGL\/\" target=\"_blank\" rel=\"noopener\">Google<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-17\"><a href=\"https:\/\/www.cnbc.com\/quotes\/MSFT\/\" target=\"_blank\" rel=\"noopener\">Microsoft<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> followed Amazon in bringing out custom Arm chips.<\/p>\n<p>Fast-forward to 2026, and central processing units like Graviton are seeing a renewed flurry of demand as mass AI adoption shifts from call-and-answer chatbots to task-oriented agentic apps.<\/p>\n<p>While GPUs like <a href=\"https:\/\/www.cnbc.com\/quotes\/NVDA\/\" target=\"_blank\" rel=\"noopener\">Nvidia<\/a>&#8216;s excel at training AI models because they have thousands of tiny cores narrowly focused on performing many operations simultaneously, CPUs have a smaller number of powerful cores running sequential general-purpose tasks. Agentic AI requires a lot of general compute power to move large amounts of data around for AI workflows, orchestrating across multiple agents.<\/p>\n<p>In April, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-19\"><a href=\"https:\/\/www.cnbc.com\/quotes\/META\/\" target=\"_blank\" rel=\"noopener\">Meta<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> said it would draw on <a href=\"https:\/\/www.cnbc.com\/2026\/04\/24\/meta-will-use-hundreds-of-thousands-of-aws-graviton-chips.html\" target=\"_blank\" rel=\"noopener\">hundreds of thousands<\/a> of Graviton chips. <\/p>\n<p>&#8220;Graviton is our industry-leading CPU chip, which allows Meta to run the CPU-intensive workloads behind Agentic AI with the performance and efficiency they need at their scale,&#8221; Amazon CEO Andy Jassy said on the company&#8217;s <a href=\"https:\/\/www.cnbc.com\/2026\/04\/29\/amazon-amzn-q1-earnings-report-2026.html\" target=\"_blank\" rel=\"noopener\">April earnings call<\/a>. <\/p>\n<p><strong>WATCH:<\/strong> <a href=\"https:\/\/www.cnbc.com\/video\/2025\/10\/29\/amazons-biggest-ai-data-center-comes-online-powering-anthropic.html\" target=\"_blank\" rel=\"noopener\">How Amazon chips are powering Anthropic without Nvidia<\/a><\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108218060\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108218060\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000393806\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108218278-1761690885230-aws-ss3.png?v=1761691961&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Amazon's biggest AI data center is now operational in Indiana, powering Anthropic without Nvidia\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"RegularArticle-GooglePreferredSource-5\"><a href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.cnbc.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/div>\n<\/div>\n<p><br \/>\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sridhar Ramaswamy, CEO of Snowflake, poses in front of the company signage outside of the New York Stock Exchange on<\/p>\n","protected":false},"author":1,"featured_media":30888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_animmysite_disable_animation":false,"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108206045-1759265547118-Snowflake-CB-Photo-20250930-KK-PRESS-029.jpg?v=1759265883&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[213],"tags":[],"class_list":["post-30887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending-sports-news"],"_links":{"self":[{"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/posts\/30887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/comments?post=30887"}],"version-history":[{"count":0,"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/posts\/30887\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/media\/30888"}],"wp:attachment":[{"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/media?parent=30887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/categories?post=30887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trendifyhubusa.com\/index.php\/wp-json\/wp\/v2\/tags?post=30887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}