Markets show software companies partnered with AI giants are in favor
Speakers
Seema Mody
— Technology and Global Markets Correspondent, CNBC
Summary
CNBC's Seema Mody reports that software earnings season shows companies partnering with AI leaders like OpenAI and Anthropic, such as Snowflake, are outperforming. Snowflake reported record new product revenue and a $6 billion AWS deal, while Salesforce disappointed with a weak Q2 guide. The market is becoming more discerning, favoring software firms that are AI partners over competitors.
- Snowflake reported its largest net new product revenue in company history.
- Snowflake's AI coating agent received strong reception.
- Snowflake committed to a $6 billion cloud infrastructure deal with AWS and will use Amazon's custom chips.
- Datadog and Akamai also saw big one-day pops following their earnings reports.
- Salesforce saw smaller gains due to a weaker Q2 guide despite strong Asian revenue.
- The software sector is not dead, but the market is rewarding companies with clear AI partnership strategies.
Trade Ideas
Snowflake gains from AI partnership positioning
Snowflake is benefiting from being a partner to AI giants like OpenAI and Anthropic rather than a competitor, evidenced by record net new product revenue, strong reception to its AI coating agent, and a $6 billion cloud infrastructure deal with AWS using Amazon's custom chips.
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This CNBC video, published May 28, 2026, features Seema Mody discussing SNOW. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Seema Mody · Tickers: SNOW