If you thought semiconductors like Micron Technology Inc. (NASDAQ:MU) and Intel Corp. (NASDAQ:INTC) were the only game in town for the AI rally, think again.

A new wave of outperformance is hitting the AI cloud layer, and it just produced one of the most violent single-day moves the software sector has seen this year.

Shares of Snowflake Inc. (NYSE:SNOW) rallied about 35% shortly after the open on Thursday, putting the stock on pace for its best day ever.

The move follows fiscal first-quarter results that landed well above Wall Street expectations.

Snowflake posted total revenue of $1.39 billion, up 33% from a year earlier, against a Street estimate near $1.32 billion. Product revenue, the metric analysts watch most closely, grew 34%.

Earnings came in at 39 cents per share versus the 32 cents analysts had penciled in.

Then came the guidance upgrade. Snowflake lifted its full-year fiscal 2027 product revenue forecast to $5.84 billion, implying growth accelerates to 31% from 29% the prior year.

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What Snowflake Actually Does

Most large companies have their data scattered across dozens of systems that do not talk to each other. Snowflake sells a single cloud platform ...