Snowflake (SNOW) just cracked Wall Street’s AI code

After topping analyst expectations with second-quarter results this week, Snowflake (SNOW) has Wall Street predicting even stronger growth ahead.

Oppenheimer maintained its Outperform rating on the stock, raising its price target to $275 from $250 and calling Snowflake one of its top picks.

The firm highlighted the strong performance of newer products like Snowpark, Cortex, and Dynamic Tables, alongside the company’s rapid AI adoption, now spanning more than 6,100 accounts.

“Overall, strong execution on all fronts, reinforcing our belief Snowflake’s growing in strategic importance to its largest customers,” Oppenheimer wrote.

Snowflake has been aggressive in pushing deeper into AI, partnering with Anthropic earlier this year to integrate its Claude large language model.

That adds to its early advantage in commercializing a cloud-agnostic data lakehouse, a feature that’s proved key as more enterprises adopt multicloud strategies.

The bet is that AI integration will help Snowflake cement its pitch as a one-stop data platform. Product revenue climbed 31.5% year over year in Q2, up from 26.2% in Q1.

Customers spending more than $1 million annually grew 29.8% YoY to 654. Oppenheimer also pointed to management’s decision to scale its sales and go-to-market operations, saying it “bodes well for driving increasingly broad platform engagement.”

Jefferies analysts reiterated a Buy rating and lifted their target to $270 from $250, reinforcing SNOW as one of their top picks on “AI tailwinds and robust data platform demand.”

AI as a ‘force multiplier’

Goldman Sachs, led by Kash Rangan, also reiterated Buy and boosted its target to $260 from $230. Rangan pointed to accelerating product revenue not just from AI but from Snowflake’s core platform.

“AI is becoming a force multiplier for the business,” he wrote, adding that Snowflake is positioned to be a Gen-AI platform enabling customers to develop agentic applications through Cortex AISQL.

He also flagged Snowflake Connect and Apache Spark integration as potential drivers of new workloads that could expand the company’s total addressable market.

Morningstar’s Luke Yang praised Snowflake’s “constant product innovation,” citing 250 new feature launches in just the past six months. He argued that the pace of development is crucial for staying competitive against other analytical database providers.

Yang expects growth will continue to come largely from existing customers ramping up consumption. “By separating computing from storage, Snowflake provides superior scalability at a lower cost compared with on-premises solutions,” he wrote.

“We think Snowflake has already become one of the must-have tools in the public cloud ecosystem.”