Snowflake’s $6 Billion AWS Bet Sends Stock Soaring 35%

Snowflake’s stock surged as much as 35% after hours Wednesday, following a blockbuster earnings report and a massive new cloud commitment with Amazon Web Services worth $6 billion over five years. The deal cements Snowflake’s reliance on AWS, including expanded use of Amazon’s custom Graviton processors and cloud-based GPUs for AI workloads.

The company reported adjusted earnings of $0.39 per share on $1.39 billion in revenue for its fiscal first quarter, beating analyst expectations of $0.32 per share and $1.32 billion. Revenue climbed 33% year over year. Snowflake also guided product revenue between $1.415 billion and $1.420 billion for the current quarter, with an adjusted operating margin of 12.5%—both above StreetAccount estimates.

This isn’t Snowflake’s first big AWS pact. At its 2020 IPO, it disclosed a $1.2 billion, five-year commitment with an unnamed cloud provider—later confirmed as AWS. That deal grew to $2.5 billion by 2023. The new $6 billion arrangement implies average annual spending of $1.2 billion.

The agreement also highlights the growing shift toward Arm-based processors in data centers. Amazon introduced its Graviton chip in 2018, and Snowflake began adopting it in 2022. Meta recently said it would deploy hundreds of thousands of Graviton chips for agentic AI workloads. AWS CEO Andy Jassy noted that Graviton’s efficiency is critical for the CPU-heavy orchestration tasks behind multi-agent AI systems.

Snowflake also announced it is acquiring AI startup Natoma for an undisclosed sum, signaling continued investment in AI capabilities beyond its existing partnership with Nvidia.