[Digital Today reporter Jinju Hong (홍진주)] Shares of AI data cloud company Snowflake jumped about 40 percent on May 28 (local time), wiping out its cumulative decline since the start of the year in a single day. Snowflake said it posted results that beat market expectations and signed a $6 billion long-term contract with Amazon Web Services (AWS).

According to blockchain media outlet BeInCrypto, the core of the rally was that results, guidance and its strategy to expand AI infrastructure were confirmed at once. Snowflake’s fiscal 2027 first-quarter revenue rose 33 percent from a year earlier to $1.39 billion, beating the market consensus of $1.32 billion. Product revenue increased 34 percent to $1.33 billion. Chief Executive Sridhar Ramaswamy said it was the largest quarterly net new business the company has recorded.

Profitability metrics were also stronger than expected. Non-GAAP earnings per share were $0.39, above the market estimate of $0.32. Net revenue retention held at 126 percent, and remaining performance obligations rose 38 percent to $9.21 billion. Snowflake accordingly raised its fiscal 2027 full-year product revenue guidance to $5.84 billion. That implies 31 percent growth, higher than the previous 27 percent forecast.

The market has started viewing Snowflake again as an AI infrastructure stock. One analyst assessed Snowflake as data infrastructure that AI runs on rather than an AI company. That means its role as a core data layer for enterprise AI drew more attention than concerns about a slowdown in simple software growth.

Its $6 billion, five-year contract with AWS also significantly boosted investor sentiment. It is Snowflake’s largest cloud commitment. The deal includes AWS Graviton chips for general workloads and GPU-accelerated EC2 instances for training AI models. The two companies also agreed to expand integration of agentic AI infrastructure.

Snowflake said the acquisition would broaden the scope of governance beyond company-wide data assets to include AI behavior and interactions. With AWS, it also plans to strengthen workload migration and joint sales through AWS Marketplace. Snowflake said cumulative revenue through AWS Marketplace has topped $7 billion.

The company also disclosed a plan to pursue the acquisition of Natoma, an enterprise model context protocol platform. Natoma is a platform for AI agent governance, and once the transaction is completed, Snowflake’s agentic AI stack will expand to the identity and connectivity layers. Snowflake said the acquisition will allow users to use data that adds application context in Snowflake Intelligence and Cortex Code and to carry out tasks directly.

After the stock surge, Snowflake has re-emerged as one of this year’s major bullish asset classes. Still, the stock’s next move depends on whether AI workloads actually translate into sustainable usage-based revenue and how quickly customers deploy AI agents into production environments. The next point to watch is whether Snowflake can tie the earnings rebound to demand for enterprise AI infrastructure rather than a one-off event.