Snowflake Stock Set to Surge as Cramer Sees 'Huge Move'

Financial news and analysis website BeInCrypto reported that CNBC host Jim Cramer expects Snowflake's stock to see a 'huge move' after the company released its blowout quarterly earnings. Cramer praised Snowflake's product revenue growth, which reached $1.49 billion, up 37% from last year. He also noted that management increased full-year product revenue guidance to $6.07 billion.

The stock price jumped 23.27% in pre-market trading on Thursday morning, reaching $377.00 from its previous close of $305.84. This surge comes after Snowflake's stock had declined by 7.4% over the past five sessions.

Cramer compared Snowflake to Broadcom, which also reported strong quarterly earnings but received a more cautious review from Cramer. Broadcom's AI semiconductor revenue increased by 221%, while its total revenue rose by 86%. However, investors were skeptical about the company's guidance for future growth, with Chief Executive Hock Tan predicting AI sales of $230 billion in fiscal 2028.

The difference between Snowflake and Broadcom lies in their valuation. Cramer noted that Snowflake offers a 'cleanest way' for hesitant enterprises to buy compute on demand, making it an attractive option for uncertain businesses.