Snowflake soars 30% on earnings beat and plan to spend $6 billion on Amazon cloud
Snowflake's stock surged 30% following a strong earnings report and an announcement of a $6 billion investment in Amazon's cloud services. The company has been adopting Arm-based Graviton chips, which are gaining popularity for AI workloads. This trend reflects a broader shift in the tech industry towards custom Arm processors for enhanced performance and efficiency.
- ▪Snowflake's stock increased by 30% after reporting better-than-expected earnings.
- ▪The company plans to invest $6 billion in Amazon's cloud services.
- ▪Snowflake has been adopting Arm-based Graviton chips to improve AI workload performance.
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AWS announced its first Arm-based Graviton chip in 2018, and it remains the company's most successful custom chip to date. Snowflake first talked about adopting Graviton in 2022. Snowflake also has close ties to Nvidia, following a partnership announced in 2023. In November, Snowflake touted updates to simplify the process of running AI workloads on Nvidia GPUs.The deal marks yet another large tech company choosing custom Arm-based processors over those based on traditional x86 architecture.For decades, server chips have been built on the x86 instruction sets pioneered by Intel in the 1970s and Advanced Micro Devices a couple of decades later. Arm's alternative power-efficient architecture went mainstream when Apple adopted it for the first iPhone in 2007.
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