Snowflake's $6 Billion Amazon Bet Fuels Historic Rally

Snowflake shares rocket over 35% after $6B AWS deal, Q1 revenue beat, and raised forecast; acquisition of AI startup Natoma signals agentic AI shift.

Snowflake delivered a blockbuster quarter that sent its shares rocketing more than 35%, as the cloud data specialist unveiled a landmark partnership with Amazon Web Services and raised its full-year outlook. The stock climbed to around 205.50 euros — a gain that pushed it within striking distance of its 52-week high of 240.65 euros and left it roughly 100% above the year's low of 103 euros.

Revenue in the fiscal first quarter hit $1.39 billion, a 33.5% jump from a year earlier and well ahead of the $1.32 billion analysts had penciled in. Product revenue, the key metric for investors, rose 34% to $1.33 billion. Adjusted earnings per share came in at $0.39, beating consensus estimates of $0.32. The company added 46 more customers spending over $1 million annually on the platform.

But the headline-grabbing news was a five-year, $6 billion infrastructure commitment from Amazon Web Services — the largest single deal in Snowflake's history. The pact is designed to expand computing capacity for enterprise AI workloads, including access to specialized graphics processors and deeper integration with AWS's Graviton chips. Management described the moment as an inflection point, with corporate demand for AI infrastructure accelerating sharply.

Alongside the AWS deal, Snowflake announced plans to acquire Natoma, a startup focused on managing automated AI agents through the Model Context Protocol. The acquisition aims to strengthen security and control over AI workflows running inside Snowflake's environment.

The financials also showed robust forward momentum. Remaining performance obligations surged 38% to $9.21 billion, while the net revenue retention rate climbed to 126%, indicating existing customers are spending more. Snowflake raised its full-year product revenue forecast to approximately $5.84 billion, up from $5.66 billion previously, and expects second-quarter product revenue between $1.415 billion and $1.42 billion — both above prior forecasts.

Analysts rushed to update their models. Morgan Stanley, Stifel and Wells Fargo raised price targets, with some going as high as $300. The stock's relative strength index now sits at 70.6, technically in overbought territory, but the strategic shift toward agentic AI and the financial firepower from AWS have investors betting the rally has more room to run.

Snowflake is expected to offer deeper details on the Natoma integration and the AWS roadmap at an industry event in June. The next major test will come with second-quarter results later in the summer.