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Snowflake (SNOW) stock charged higher on Thursday after the cloud data company announced a multi-year strategic infrastructure deal with Amazon (AMZN).
According to SNOW’s press release, it has committed to spending $6 billion on Amazon Web Services (AWS) over the next five years, helping joint customers worldwide build and deploy AI faster and more securely.
Snowflake stock has been a blockbuster investment in recent months, having soared roughly 100% since early April.
What the Amazon Deal Means for Snowflake Stock
The aforementioned commitment includes the use of Amazon’s custom “Graviton” processors and other chips to power AI and agentic applications.
As artificial intelligence shifts toward agentic workloads, CPU usage is accelerating rapidly alongside GPU demand.
SNOW shares rallied on the announcement because locking in access to AMZN’s more affordable custom silicon would likely help the company grow its margins in the long run.
Meanwhile, a commitment of this size also keeps Amazon deeply incentivized to push Snowflake through the AWS Marketplace, which may strengthen its reach and lower its customer acquisition costs.
All in all, the Amazon partnership “de-risks” Snowflake’s infrastructure roadmap; it offers supply certainty at scale just as enterprise AI consumption is inflecting upward.
Why SNOW Shares Are Worth Buying After Q1 Earnings
Beyond the AWS deal, SNOW’s underlying business fundamentals are arguably the strongest they have been in years.
Net revenue retention (NRR) improved to 126% in Q1 after three straight quarters at 125%, giving Snowflake shares bulls a clean signal that customer expansion may be stabilizing.
Remaining performance obligations (RPO) also went up another 38% in the first quarter to $9.21 billion, a forward-demand signal that contracted revenue is not slowing.
More importantly, Cortex Code is now active across 7,100+ accounts, and Snowflake Intelligence more than doubled sequentially, reinforcing that AI monetization has moved well beyond the pilot phase.
What’s the Consensus Rating on Snowflake
Note that Wall Street analysts remain bullish on SNOW stock for the remainder of 2026.
According to Barchart, the consensus rating on Snowflake sits at “Strong Buy,” with price targets going as high as $325, indicating potential upside of roughly 35% from here.
