Gotrade News – AI Infrastructure stocks rose on Thursday after Snowflake (SNOW) soared 36.55% in the quarter. The move boosted sentiment across data, compute and accelerator names related to enterprise AI spending.
Investors read this print publication as evidence that demand for AI workloads is still expanding into the cloud data layer. Analysts also raised their targets for the chipmaker, reinforcing their bullish view on the broader AI infrastructure complex.
Important points
- Snowflake shares rose 36.55% after first-quarter sales rose 33% to $1.39 billion.
- Baird priced AMD at $625, and UBS tripled Micron to $1,625, suggesting broader AI upside.
- Nvidia closed near $214, securing steady demand across its AI infrastructure stack.
The Motley Fool reported that Snowflake had first-quarter sales of $1.39 billion, a 33% increase from the same period last year. Management raised its full-year product revenue outlook to $5.84 billion, an increase of 31% from its previous outlook of 27%.
The company also raised its adjusted operating margin outlook to 13.5% from 12.5%, suggesting improved profitability. High-value customers with over $1 million in product revenue in the past 12 months increased by 29% to 779 accounts.
Why AI infrastructure trading is heating up
Snowflake’s beat highlighted the acceleration of AI adoption across the installed base, including new tools Cortex Code and Snowflake Intelligence. This article supported the view that enterprise AI workloads continue to drive demand for cloud data infrastructure.
This sentiment extended to the names of accelerators and memory, which are central to AI training and inference. The Motley Fool reports that Baird has set a $625 price target on AMD, implying an upside of about 25% for the stock.
The company cited AMD’s positioning in inference and agent AI, with large GPU deals reportedly worth more than $100 billion each. This framework moves AMD deeper into the AI hardware narrative that has long been dominated by Nvidia (NVDA).
According to the report, UBS has tripled its price target for Micron from $535 to $1,625, suggesting an upside of about 80% from current levels. Micron trades at 8.6 times estimated 2027 earnings, despite an increase of more than 800% over the past year.
Keeping compute, data and power demands tight
The driving force behind these upgrades is high-bandwidth memory demands and sustained capital investment from hyperscalers pursuing AI capabilities. Nvidia closed near $214 as steady AI demand supported broad infrastructure gains across chips and cloud platforms.
Capacity increases are also flowing to neocloud and data center landlords that support model training. Companies like Nebius Group (NBIS) are positioned closer to the GPU-as-a-service layer, benefiting from the same demand curve that lifts Snowflake and Nvidia.
For investors, the session highlighted that AI trading is expanding beyond single accelerator stocks. Data platforms, memory, and GPU computing are moving together as the infrastructure layer expands as enterprises deploy them.
Valuation and execution risks remain, especially for stocks trading at high forward multiples. Still, increased guidance from Snowflake and upgrades to overall chip targets suggest there is room for execution into the second half of the AI capex cycle.
