"Surging 23% after 5-day plunge"...Snowflake Overtakes Broadcom, Capturing Attention

▲ Snowflake (SNOW), Broadcom (AVGO)/AI-generated image

Snowflake (SNOW) attracted market attention by surging 23.27% in pre-market trading immediately after its earnings announcement.

According to BeInCrypto on September 3 (local time), CNBC host Jim Cramer evaluated Snowflake as a key platform enabling companies to secure computing resources as needed. He stated, “Snowflake is going to make big moves.” Snowflake had fallen 7.4% over five trading days before the earnings announcement, but the sentiment reversed sharply immediately after the announcement.

The earnings exceeded market expectations. Q2 product revenue increased by 37% year-over-year to $1.49 billion. Adjusted earnings per share recorded $0.62. The company also raised its annual product revenue outlook to $6.07 billion. With both strong earnings growth and an upward revision of the annual outlook confirmed, Cramer's optimism gained traction.

Broadcom (AVGO) reported steeper artificial intelligence (AI) growth, but market reaction was mixed. AI semiconductor revenue increased by 221% to $16.7 billion. Total revenue grew by 86% to $29.6 billion, and adjusted earnings per share recorded $3.32.

Broadcom CEO Hock Tan projected Q4 AI revenue to be $21.7 billion. He also stated that supply to support approximately $115 billion in AI revenue for fiscal year 2027 has been secured. A path for AI revenue to increase to $230 billion in fiscal year 2028 was presented. However, the Q4 overall revenue outlook of $34.8 billion slightly missed market expectations, leading to a 2.58% drop in pre-market trading.

Cramer commented on Broadcom, saying, “The upward revision of forecasts for next year and the year after is what we’ve been waiting for.” At the same time, he showed caution about the possibility that market expectations might have become excessively high. While strong buying interest flowed into Snowflake immediately after its strong earnings and upward outlook, Broadcom’s short-term earnings outlook, despite surging AI revenue, divided stock reactions.

[Article Key Summary]

-Snowflake surged 23.27% in pre-market trading as its Q2 product revenue increased by 37% and its annual outlook was raised.

-Jim Cramer expressed strong expectations for Snowflake, stating, “It will make big moves.”

-Broadcom's AI semiconductor revenue surged by 221%, but its Q4 overall revenue outlook missed market expectations, causing a 2.58% drop in pre-market trading.

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