| Key Points – Wedbush upgrades Snowflake to “outperform” with a $190 price target, citing AI-driven growth opportunities. – Snowflake’s transition from optimization to expansion positions it to benefit from increased demand for AI applications. – Analysts emphasize broader software sector opportunities, also upgrading Elastic and raising targets for Palantir and Salesforce. |
Shares of Snowflake Inc. (SNOW) rose by approximately 3% on Monday after Wedbush analysts upgraded the stock, citing the company’s strategic position in the rapidly growing artificial intelligence (AI) sector. The firm upgraded its rating from “neutral” to “outperform” with a new price target of $190, highlighting Snowflake’s potential to capitalize on AI-driven opportunities in the software market.
Wedbush emphasized that the “AI Software era is now here,” marking a significant shift in the tech landscape. According to the analysts, the first phase of AI development was led by major players like Microsoft (MSFT), Amazon (AMZN), and Google parent Alphabet (GOOGL). The firm believes the market is now primed for broader adoption across the software sector, positioning companies like Snowflake to thrive.
Snowflake’s cloud-based data platform, known for its scalability and adaptability, places it in what Wedbush called the “sweet spot” for addressing booming demand for AI products. The analysts pointed out that Snowflake’s “optimization” phase has concluded, signaling a shift toward robust revenue growth driven by AI applications.
Wedbush predicts that AI use cases will play a significant role in boosting Snowflake’s performance over the next 12 to 18 months, particularly as the company moves into fiscal year 2026. The demand for advanced data management and analytics, key enablers of AI capabilities, is expected to accelerate, creating a substantial tailwind for Snowflake’s product revenue.
Wedbush also upgraded other companies in its report, including data analytics firm Elastic (ESTC), and increased price targets for Palantir Technologies (PLTR) and Salesforce (CRM). The analysts noted that this wave of AI-driven growth presents a unique opportunity for software companies to “get in on the AI party,” as demand for intelligent systems becomes ubiquitous across industries.
Despite Snowflake’s recent gains, the stock remains down by 13% year-to-date. However, the upgrade signals growing confidence in the company’s long-term prospects as it pivots to capitalize on AI momentum.