Snowflake Commits $6 Billion to AWS Over Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20 hours ago
0mins
Source: Newsfilter
- Increased Investment: Snowflake has committed to spending $6 billion on AWS over the next five years, a significant increase from the $1.2 billion deal disclosed at its 2020 IPO, indicating a deepening reliance on cloud services that is expected to drive business growth.
- Technology Upgrade: The agreement includes the use of AWS's Graviton chips and graphics processing units, aimed at enhancing Snowflake's computing capabilities in artificial intelligence, thereby strengthening its competitive position and meeting customer demands for high-performance computing.
- Positive Market Reaction: Following the announcement of its financial results, Snowflake's stock surged 25% in after-hours trading, reporting adjusted earnings of $0.39 per share, exceeding analyst expectations of $0.32, reflecting investor confidence in the company's growth potential.
- Industry Trend: As more companies turn to AWS for advanced technologies, Snowflake's investment not only reflects its strategic shift but also highlights the rapid development of the cloud computing market in the AI sector, potentially attracting more customers and investments.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to fall
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 302.710
Low
120.00
Averages
160.58
High
201.00
Current: 302.710
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is a United Kingdom-based company. The Company is engaged in the design of central processing units (CPUs) and compute platforms for semiconductor chips. It develops and licenses CPU products and related technology. Its cloud and data center solutions include Arm AGI CPU and Arm Neoverse Compute Subsystems. The Arm Agentic Generalized Infrastructure (AGI) CPU is a production-ready system on a chip (SoC) for artificial intelligence (AI) data centers, delivering compute at scale. The Arm Neoverse Compute Subsystems (CSS) are pre-validated, performance-optimized compute platforms designed to accelerate infrastructure silicon development. The Company's primary markets include smartphone applications, processors and other chips used in mobile phones, consumer electronics, networking equipment, cloud and data center servers, automotive applications, Internet of Things (loT) and other embedded computing devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Arm Holdings Stock Soars 210%, Price Target Raised to $360
- Stock Surge: Driven by rampant enthusiasm for AI stocks, Arm Holdings has seen its stock price soar over 210% since the beginning of 2026, with a 13% increase today, reflecting strong market demand and investor confidence.
- Price Target Increase: Mizuho raised its price target for Arm stock from $290 to $360, based on expectations of strong demand for dynamic random access memory (DRAM) that is anticipated to persist through 2027, further propelling growth in the semiconductor sector.
- Market Potential: Mizuho also highlighted that the total addressable market for high bandwidth memory is expanding, which provides a favorable outlook for Arm's future, indicating that the company will continue to strengthen its competitive position in the semiconductor industry.
- Valuation Considerations: Despite Mizuho's bullish outlook on Arm stock, its current price-to-earnings ratio stands at a steep 356 times, leading investors to consider investing in AI ETFs that include Arm stock to mitigate risk while gaining market exposure.
See More
Arm Stock Soars 210% in 2026 Amid AI Enthusiasm
- Stock Surge: Arm Holdings' stock has soared over 210% since the beginning of 2026, reflecting strong market enthusiasm for AI stocks and boosting overall semiconductor sector performance.
- Price Target Increase: Mizuho raised its price target on Arm stock from $290 to $360, based on expectations of strong demand for dynamic random access memory (DRAM), which is projected to grow through 2027.
- Valuation Warning: Despite Mizuho's bullish outlook, Arm's current price-to-earnings ratio stands at 356, leading investors to consider AI ETFs that include Arm stock to mitigate risk.
- Market Performance Comparison: With Arm's latest closing price at $302.71, the new target implies a 19% upside, and reaching $360 would set a new all-time high, indicating strong market confidence in its future growth.
See More
Investors Should Focus on Future Stock Potential
- Market Insight: CNBC's Jim Cramer emphasizes that investors should not fixate on a stock's past performance but rather focus on its future upside potential, a crucial perspective in the current market, especially as AI and data center stocks continue to rally.
- Investment Decision Pitfall: Cramer points out that many investors mistakenly assume a stock has become 'too expensive' after significant gains, which can lead to missed opportunities, stressing that if one believes a stock will rise further, historical prices should not deter buying decisions.
- Corning Stock Example: Cramer highlights Corning's CEO Wendell Weeks' argument for fiber optics replacing copper in data centers, noting that despite the stock rising from about $52 in July to $77, he decided to buy on October 21, leading to a doubling of the stock price, reflecting strong market demand.
- Arm Holdings Investment: Cramer also mentions Arm Holdings, whose shares soared after unveiling its in-house designed CPU; he bought in at around $173 on April 20, after the stock had already risen, which later surpassed $300, underscoring the importance of focusing on future potential.
See More
Investors Should Focus on Future Stock Potential
- Investment Strategy Shift: CNBC's Jim Cramer advises investors to stop fixating on past stock rallies and instead focus on future upside potential, a crucial perspective in the current market, especially as AI and data center stocks continue to rise.
- Corning's Growth Potential: Cramer highlights Corning's potential for fiber optics to replace copper in data centers, noting that despite its stock price rising from about $52 in July to $77, the CEO's confidence and market demand could drive further growth.
- Arm Holdings' Strategic Shift: Cramer points out that after Arm Holdings unveiled its in-house designed CPU on March 24, its stock price surged from $135 to $173, later exceeding $300, indicating strong growth potential in the AI sector.
- Investor Mindset Adjustment: Cramer emphasizes that investors should not miss opportunities simply because a stock has already risen significantly; instead, they should focus on the long-term growth narrative of the business to seize more market opportunities.
See More
Snowflake Secures $6 Billion Commitment from Amazon for AI Services
- Major Partnership Agreement: Snowflake has secured a $6 billion spending commitment from Amazon Web Services, planning to utilize Amazon's custom silicon and AI chips over the next five years, significantly enhancing its technological capabilities in the AI sector.
- Strong Financial Performance: In its fiscal Q1 2024 report, Snowflake posted an adjusted earnings per share of $0.39 and revenue of $1.39 billion, reflecting a 33% year-over-year increase and surpassing analyst expectations, indicating sustained growth momentum.
- Optimistic Market Outlook: The company anticipates a 12.5% adjusted operating margin for fiscal Q2 2024, with product revenue projected between $1.415 billion and $1.420 billion, underscoring strong demand and profitability in the AI market.
- Acquisition of AI Startup: Snowflake also announced the acquisition of AI startup Natom for an undisclosed amount, further solidifying its strategic positioning in the AI landscape and demonstrating its commitment to future technological advancements.
See More
Snowflake Commits $6 Billion to AWS Over Five Years
- Increased Investment: Snowflake has committed to spending $6 billion on AWS over the next five years, a significant increase from the $1.2 billion deal disclosed at its 2020 IPO, indicating a deepening reliance on cloud services that is expected to drive business growth.
- Technology Upgrade: The agreement includes the use of AWS's Graviton chips and graphics processing units, aimed at enhancing Snowflake's computing capabilities in artificial intelligence, thereby strengthening its competitive position and meeting customer demands for high-performance computing.
- Positive Market Reaction: Following the announcement of its financial results, Snowflake's stock surged 25% in after-hours trading, reporting adjusted earnings of $0.39 per share, exceeding analyst expectations of $0.32, reflecting investor confidence in the company's growth potential.
- Industry Trend: As more companies turn to AWS for advanced technologies, Snowflake's investment not only reflects its strategic shift but also highlights the rapid development of the cloud computing market in the AI sector, potentially attracting more customers and investments.
See More
Arm Holdings Stock Soars 210%, Price Target Raised to $360
- Stock Surge: Driven by rampant enthusiasm for AI stocks, Arm Holdings has seen its stock price soar over 210% since the beginning of 2026, with a 13% increase today, reflecting strong market demand and investor confidence.
- Price Target Increase: Mizuho raised its price target for Arm stock from $290 to $360, based on expectations of strong demand for dynamic random access memory (DRAM) that is anticipated to persist through 2027, further propelling growth in the semiconductor sector.
- Market Potential: Mizuho also highlighted that the total addressable market for high bandwidth memory is expanding, which provides a favorable outlook for Arm's future, indicating that the company will continue to strengthen its competitive position in the semiconductor industry.
- Valuation Considerations: Despite Mizuho's bullish outlook on Arm stock, its current price-to-earnings ratio stands at a steep 356 times, leading investors to consider investing in AI ETFs that include Arm stock to mitigate risk while gaining market exposure.
See More
Arm Stock Soars 210% in 2026 Amid AI Enthusiasm
- Stock Surge: Arm Holdings' stock has soared over 210% since the beginning of 2026, reflecting strong market enthusiasm for AI stocks and boosting overall semiconductor sector performance.
- Price Target Increase: Mizuho raised its price target on Arm stock from $290 to $360, based on expectations of strong demand for dynamic random access memory (DRAM), which is projected to grow through 2027.
- Valuation Warning: Despite Mizuho's bullish outlook, Arm's current price-to-earnings ratio stands at 356, leading investors to consider AI ETFs that include Arm stock to mitigate risk.
- Market Performance Comparison: With Arm's latest closing price at $302.71, the new target implies a 19% upside, and reaching $360 would set a new all-time high, indicating strong market confidence in its future growth.
See More
Investors Should Focus on Future Stock Potential
- Market Insight: CNBC's Jim Cramer emphasizes that investors should not fixate on a stock's past performance but rather focus on its future upside potential, a crucial perspective in the current market, especially as AI and data center stocks continue to rally.
- Investment Decision Pitfall: Cramer points out that many investors mistakenly assume a stock has become 'too expensive' after significant gains, which can lead to missed opportunities, stressing that if one believes a stock will rise further, historical prices should not deter buying decisions.
- Corning Stock Example: Cramer highlights Corning's CEO Wendell Weeks' argument for fiber optics replacing copper in data centers, noting that despite the stock rising from about $52 in July to $77, he decided to buy on October 21, leading to a doubling of the stock price, reflecting strong market demand.
- Arm Holdings Investment: Cramer also mentions Arm Holdings, whose shares soared after unveiling its in-house designed CPU; he bought in at around $173 on April 20, after the stock had already risen, which later surpassed $300, underscoring the importance of focusing on future potential.
See More
Investors Should Focus on Future Stock Potential
- Investment Strategy Shift: CNBC's Jim Cramer advises investors to stop fixating on past stock rallies and instead focus on future upside potential, a crucial perspective in the current market, especially as AI and data center stocks continue to rise.
- Corning's Growth Potential: Cramer highlights Corning's potential for fiber optics to replace copper in data centers, noting that despite its stock price rising from about $52 in July to $77, the CEO's confidence and market demand could drive further growth.
- Arm Holdings' Strategic Shift: Cramer points out that after Arm Holdings unveiled its in-house designed CPU on March 24, its stock price surged from $135 to $173, later exceeding $300, indicating strong growth potential in the AI sector.
- Investor Mindset Adjustment: Cramer emphasizes that investors should not miss opportunities simply because a stock has already risen significantly; instead, they should focus on the long-term growth narrative of the business to seize more market opportunities.
See More
Snowflake Secures $6 Billion Commitment from Amazon for AI Services
- Major Partnership Agreement: Snowflake has secured a $6 billion spending commitment from Amazon Web Services, planning to utilize Amazon's custom silicon and AI chips over the next five years, significantly enhancing its technological capabilities in the AI sector.
- Strong Financial Performance: In its fiscal Q1 2024 report, Snowflake posted an adjusted earnings per share of $0.39 and revenue of $1.39 billion, reflecting a 33% year-over-year increase and surpassing analyst expectations, indicating sustained growth momentum.
- Optimistic Market Outlook: The company anticipates a 12.5% adjusted operating margin for fiscal Q2 2024, with product revenue projected between $1.415 billion and $1.420 billion, underscoring strong demand and profitability in the AI market.
- Acquisition of AI Startup: Snowflake also announced the acquisition of AI startup Natom for an undisclosed amount, further solidifying its strategic positioning in the AI landscape and demonstrating its commitment to future technological advancements.
See More
Snowflake Commits $6 Billion to AWS Over Five Years
- Increased Investment: Snowflake has committed to spending $6 billion on AWS over the next five years, a significant increase from the $1.2 billion deal disclosed at its 2020 IPO, indicating a deepening reliance on cloud services that is expected to drive business growth.
- Technology Upgrade: The agreement includes the use of AWS's Graviton chips and graphics processing units, aimed at enhancing Snowflake's computing capabilities in artificial intelligence, thereby strengthening its competitive position and meeting customer demands for high-performance computing.
- Positive Market Reaction: Following the announcement of its financial results, Snowflake's stock surged 25% in after-hours trading, reporting adjusted earnings of $0.39 per share, exceeding analyst expectations of $0.32, reflecting investor confidence in the company's growth potential.
- Industry Trend: As more companies turn to AWS for advanced technologies, Snowflake's investment not only reflects its strategic shift but also highlights the rapid development of the cloud computing market in the AI sector, potentially attracting more customers and investments.
See More
