Snowflake stock jumps to fresh highs as CEO Sridhar Ramaswamy touts AI enterprise boom

Snowflake has had a good 24 hours. On Wednesday, August 27, the cloud-based data storage company announced its second-quarter earnings and reported $1.1 billion in revenue—a 32% jump year-over-year (YOY). 

The company’s second quarter of fiscal year (FY) 2026 also saw a net revenue retention rate of 125%. Plus, it grew from 606 to 654 customers with more than $1 million in trailing 12-month product revenue. 

Perhaps most notably, Snowflake has now increased its expected product revenue for FY 2026 to $4.4 billion from $4.3 billion. If met, this figure would signify a 27% growth YOY and beat analysts’ predictions, according to consensus estimates cited by Reuters.

Investors responded positively to the news, with Snowflake’s stock price (NYSE: SNOW) jumping about 14% after-hours and into premarket trading on Thursday. 

What is fueling Snowflake’s success?

In an earnings call, Snowflake’s CEO Sridhar Ramaswamy attributed a great deal of the company’s success to AI.

“Snowflake remains laser focused on our mission to empower every enterprise to achieve its full potential through data and AI,” Ramaswamy stated. “We’re delivering our more than 12,000 customers tremendous value throughout their entire data life cycle with an AI data cloud that’s designed to enable faster innovation and remove friction from business operations.”

Ramaswamy added that Snowflake “delivered on our product strategy, introducing incredible new innovations to drive value at each stage of our customer’s data journey.”

“Of course, AI is front and center,” he added. “We are continuing to advance our leadership in enterprise AI with Snowflake Intelligence now in public preview. This platform enables every user to talk to their enterprise data, turning structured and unstructured data into actionable insights through natural language.”

Shares of Snowflake are up 27% year to date and almost 80% over the last 12 months as of Wednesday’s close.

Mixed week for AI-adjacent tech

However, the AI boom wasn’t strong enough to propel every company. Wednesday also saw Nvidia announce its second-quarter earnings for FY 2026, and even a 56% boost in revenue YOY—to $46.7 billion—wasn’t enough to lift its shares.

The chip manufacturer’s stock initially fell 3.5%, though it has almost fully rebounded in premarket trading. 

The lack of excitement came in part due to Nvidia’s $41.1 billion in data center revenue. Despite also being up 56% YOY, it failed to meet Wall Street’s predicted $41.34 billion, according to consensus estimates cited by CNBC.

Nvidia is also facing continued uncertainty about selling its H20 chips to China, despite giving the Trump administration a 15% cut of sales for the go-ahead.

The company sold no H20 chips to China during quarter two, and reports indicate that Nvidia has halted production of the chips.