Snowflake shares surge as AI demand powers growth, lifts outlook

Snowflake's coding assistant, Cortex Code, topped 9,100 accounts after adding more than 2,000 customers during the quarter, while enterprise chatbot CoWork expanded to 5,800 accounts.

"There was some nervousness around whether investor expectations were getting too high into the print. (But) we can see the positive sentiment gains continuing," Barclays analysts wrote.

Snowflake has outperformed the broader market this year, rising 39% through Wednesday versus a 12% gain for the S&P 500 .SPX. If premarket gains hold, the stock will be headed for its biggest daily jump since May.

Its shares are trading at roughly 15 times forward revenue, compared with for the broader iShares Expanded Tech-Software Sector ETF IGV.P. The stock is also priced at , well above peer Datadog's DDOG.O and MongoDB's MDB.O .