Snowflake’s AI-Powered Growth Trajectory Remains Strong, Says Analyst

Snowflake’s AI-Powered Growth Trajectory Remains Strong, Says Analyst

Snowflake (NYSE:SNOW) stock surged on Wednesday, backed by continued AI frenzy, as the company capitalizes on growing demand for its data warehousing and AI-driven products.

With a notable 26% year-to-date gain, the firm remains a key player in the AI data cloud market, driven by strong momentum in its core offerings like Cortex AI and Snowpark.

This comes as major tech giants, including Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Google parent Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), ramp up investments in AI, setting the stage for further growth in Snowflake’s revenue and market position.

Also Read: Snowflake Stock Jumps 45% In 2025 As AI Data Cloud Drives Record Revenue

Bank of America Securities analyst Brad Sills upgraded the stock from Neutral to Buy and raised the price forecast from $220 to $240. He expressed higher conviction in Snowflake’s ability to sustain its growth, citing the durability of its AI-driven momentum.

Sills cited strong momentum in its core data warehouse, Cortex AI, and Snowpark developer businesses. He based the upgrade on three proprietary data sources pointing to accelerating demand, noting that despite a 47% year-over-year stock gain, shares still trade at a reasonable 1.5 times calendar 2026E FCF multiple adjusted for growth, compared with large-cap peers at 1.6 times.

Sills now projects second-quarter product revenue of $1.064 billion, about 2.5% above Snowflake’s $1.038 billion guidance, driven by more substantial web traffic and channel feedback indicating rising demand for AI-related workloads.

He also raised earnings estimates, forecasting 2026 EPS of $0.95 (up from $0.93), 2027 EPS of $1.17 (up from $1.14), and 2028 EPS of $1.52 (up from $1.48).

A recent survey of Snowflake customers reinforced his bullish stance, with respondents planning to increase spend by 12% over the next 12 months, a sharp acceleration versus the prior year, as adoption of AI workloads and new products expands.

Price Action: SNOW stock is trading lower by 0.30% to $192.05 at last check Wednesday.

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