Snowflake shares surged around 19% on Thursday (August 28), buoyed by strong demand for the company’s AI database products, as firms race to modernise their data infrastructure and streamline AI adoption.

If these gains hold, the stock move could add more than US$12.5 billion to Snowflake’s US$67 billion market capitalisation.

The cloud-based data warehousing company, which enables enterprises to store, manage and analyse vast datasets across multiple cloud providers, reported accelerating demand for its platform, Reuters reported.

Investor optimism was further supported by Nvidia’s upbeat forecast, which reinforced confidence in the AI boom and signalled continued spending on data infrastructure, a trend that positions Snowflake to benefit as businesses deploy AI at scale.

“Snowflake is a key beneficiary of the AI and cloud migration trend, with its modern data architecture helping companies leverage AI innovation, alongside other next-generation databases and platforms,”

said Richard Clode, portfolio manager at Janus Henderson Investors, which holds Snowflake shares.

Shares of peers MongoDB and Datadog rose roughly 4.5%, with MongoDB receiving an extra boost after raising its full-year revenue and profit outlook earlier this week.

Snowflake now expects annual product revenue of US$4.40 billion, up from its prior forecast of US$4.33 billion and above analysts’ estimates.

Databricks announced earlier this month that it is raising funds in a Series K round at a valuation exceeding US$100 billion, highlighting investor demand for AI-native data platforms.

Snowflake shares, up about 30% this year, currently trade at 142.5 times profit estimates, compared with 75.8 for MongoDB and 63.7 for Datadog.

At least 24 analysts have raised their price targets and more than 10 have upgraded the stock, which carries an average “buy” rating and a median target of US$260.

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