A Snowflake Inc. banner will be on display on the New York Stock Exchange to celebrate the company’s first public offering on September 16th, 2020.
Brendan McDermid | Reuters
Mongodb’s Stocks closed a record-high week and led a rally of enterprise technology companies that are seeing a tailwind from the artificial intelligence boom.
In addition to the 44% rallies in Mongodb, Pure Storage Surged 33%, increasing the second sharpest profit Snowflake I jumped 21%. Autodesk rose 8.4%.
Generated AI has since launched takeoff in late 2022 after Openai’s ChatGPT launch, the big winner has been nvidiaits graphics processing unit, and stuff like cloud vendors. Microsoft, Google and Oracleand companies include GPU packaging and sales etc. Dell and Super Microcomputer.
For many cloud software vendors and other enterprise tech companies, Wall Street has been waiting to see if AI would benefit from the business or if it might drive it away.
This week’s quarterly results and commentary from company executives may have eased some of these concerns, indicating that AI’s economic benefits are downstream.
Mongodb CEO Dev Ittycheria told CNBC’s “Squawk Box” on Wednesday that the enterprise rollout of AI services is occurring, but is happening slowly.
“We may start seeing agent deployments to automate back offices and automate sales and marketing, but we still aren’t fully powered by a company,” says Ittycheria. “People want to see some wins before rolling out more investments.”
According to LSEG, revenue from Mongodb, which sells cloud database services, rose 24% from the previous year to $591 million, sailing beyond the average analyst estimate of $556 million. As was the full-year forecast for profit and revenue, revenues also exceeded expectations.
Mongodb said in its revenue report that more than 5,000 customers have been added since the start of the year.
“A lot of these companies are AI native companies that come to Mongodb to run their businesses, so I think that’s a good sign of future growth,” says Ittycheria.
Pure Storage jumped to an all-time high with stocks growing 32% on Thursday.
Data storage management vendors reported quarterly results above estimates and lifted guidance for the year. But the most exciting investor is the early return from Pure’s recent contract Meta. Pure helps social media companies manage their large storage needs efficiently in response to AI demands.
Pure said it began recognizing revenue from its meta development in the second quarter, and finance director Tarek Robbiati said in its revenue call that the company is trying to replace traditional storage with Pure’s technology for “a growing interest from other hyperscalers.”
“Report Banger”
Reports from Mongodb and Pure said it landed in the same week when Nvidia announced its quarterly profits, surged 56% from the previous year and won the ninth quarter with growth above 50%.
Nvidia has emerged as the world’s most valuable company by selling advanced AI processors to all infrastructure providers and model developers.
Growth at Nvidia has slowed from the triple-digit rates in 2023 and 2024, but is expanding at a much faster pace than the Mega Cup peers, indicating that it is never ending when it comes to vast AI buildouts.
“It was a reporting banger,” said Brad Gerstner, CEO of Altimeter Capital, in an interview with CNBC’s “Halftime Report” on Thursday. “This company is accelerating on a massive scale.”
Data analytics vendor Snowflake described Snowflake AI Data Cloud in its quarterly revenue report on Wednesday.
Snowflake’s stock accounted for 20%, with better revenue and revenue than expected. The company also boosted its annual guidance on product revenue, saying it had over 6,100 customers using Snowflake AI from 5,200 in the last quarter.
“The advancements with AI have been amazing,” Snowflake CEO Sridhar Ramaswamy said in a revenue call. “Today, AI is the central reason why customers are choosing snowflakes, affecting almost 50% of the new logos they acquired in the second quarter.”
Founded in 1982, Autodesk is much longer than Mongodb, Pure Storage and Snowflake. The company is known for its AutoCAD software used in architecture and construction.
The company has inadequate the broader tech sector recently, and last year’s activist investor Starboard Value jumped into stocks to drive improved operations and financial performance, including cost savings. In February, Autodesk cut a massive 9% of its workforce, and two months later the company settled on the right board, adding two newcomers to the board.
Stocks continue to take over Nasdaq this year, but rose 9.1% on Friday after Autodesk reported results of increasing full-year revenue guidance beyond Wall Street estimates.
Last year, Autodesk introduced Project Bernini to develop new AI models and create what is called the “AI-driven CAD engine.”
In Thursday’s revenue call, CEO Andrew Anagnost was asked what he was most excited about in the company’s entire product portfolio when it comes to AI.
Anagnost promoted Autodesk’s ability to help customers simplify workflows between products and promoted Autodesk Assistant as a way to increase productivity through simple prompts.
He also addressed the existential threats presented by the elephants in the room, the AI.
“AI might eat software,” he said, “but it’s not going to eat Autodesk.”
Watch: Autodesk CEO with Q2 Revenue
