{"id":589793,"date":"2026-09-04T09:38:14","date_gmt":"2026-09-04T09:38:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/589793\/"},"modified":"2026-09-04T09:38:14","modified_gmt":"2026-09-04T09:38:14","slug":"snowflakes-ai-fueled-beat-sparks-software-rally-will-others-follow","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/589793\/","title":{"rendered":"Snowflake’s AI-Fueled Beat Sparks Software Rally: Will Others Follow?"},"content":{"rendered":"\n

Snowflake’s upbeat AI outlook is turning into a broader software trade, with a wave of enterprise names rallying alongside it and Jim Cramer flagging more room to run. <\/p>\n

The move adds to a stretch of earnings this season where AI-linked spending has repeatedly rewarded shareholders, even as some investors question how long richly priced software names can keep climbing. <\/p>\n

AI is Driving the Software Firm <\/p>\n

Snowflake shares jumped 23% on Thursday after the cloud data platform lifted its fiscal 2027 product revenue forecast to $6.07 billion, up from $5.84 billion, alongside a 37% year-over-year jump in second-quarter product revenue. <\/p>\n

\"\"<\/a> Snowflake jumped as much as 23% on its earnings. Image Source: Trading View <\/p>\n

CEO Sridhar Ramaswamy said artificial intelligence (AI) tools are now driving growth across Snowflake’s core platform, not just its standalone AI products, calling it a compounding “flywheel effect” for the business. <\/p>\n

Shares hit their highest level since December 2021, adding roughly $25 billion in market value in the move. The stock has now climbed 39% for the year, more than triple the S&P 500’s 12% gain over the same stretch. <\/p>\n

Software Stocks Move Together <\/p>\n

The rally spilled into peers. ServiceNow, Salesforce’s record earnings run, Atlassian, Adobe, and Intuit all climbed between 3.5% and 6%, while the iShares Expanded Tech-Software Sector ETF added 3%. <\/p>\n

Morgan Stanley analysts said the pattern of consistently faster growth in recent quarters shows AI is meaningfully driving usage of Snowflake’s own platform, beyond its dedicated AI tools. <\/p>\n

At least 34 brokerages raised their price targets following the results, according to data compiled by LSEG, with Wells Fargo issuing a Street-high call of $525. Snowflake now trades near 15 times forward revenue, well above the software-sector ETF’s 7.4 times, and its 121.8 times forward earnings dwarfs Datadog’s 72.7 times and MongoDB’s 52.1 times. <\/p>\n

CNBC’s Jim Cramer weighed in after the report, flagging a huge move still ahead for the stock, and calling it the cleanest way for cautious enterprises to buy AI compute on demand. <\/p>\n

So Snowflake remains the best way for the uncertain to get compute but Broadcom tells a story of an explosion of business coming. Snowflake will have a huge move… <\/p>\n

\u2014 Cramer <\/p>\n

The reaction echoes a pattern seen elsewhere this earnings season, including Salesforce’s own AI-driven breakout and software stocks rebounding after months of AI-replacement fears. <\/p>\n

Whether that momentum holds may depend on how quickly Snowflake and its peers can turn rising AI demand into durable margin, rather than just top-line growth. <\/p>\n

Read the Original story Snowflake’s AI-Fueled Beat Sparks Software Rally: Will Others Follow?<\/a> by Darryn Pollock at beincrypto.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Snowflake’s upbeat AI outlook is turning into a broader software trade, with a wave of enterprise names rallying…\n","protected":false},"author":2,"featured_media":589794,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,10700,111,139,69,52144,290412,145],"class_list":["post-589793","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-jim-cramer","tag-new-zealand","tag-newzealand","tag-nz","tag-snowflake","tag-snowflake-ai","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/589793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=589793"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/589793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/589794"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=589793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=589793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=589793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}