Snowflake shares surged 35% on Thursday after the data analytics firm announced a $6 billion investment in compute resources from Amazon Web Services.
The move includes the adoption of AWS's custom Graviton chips, which are optimized for artificial intelligence workloads.
The stock's performance fueled a broader rally in the software sector, with ServiceNow, Oracle, and Palantir also seeing gains.
The AI-driven infrastructure spending highlights the sector's shift toward cloud-based solutions to support growing demand for machine learning and data processing.
Snowflake's earnings report, which exceeded expectations, further reinforced investor confidence in the company's strategic direction.
The rally aligns with recent trends in the tech industry, where companies are increasingly allocating capital to AI and cloud infrastructure.