Here’s why Snowflake shares rose again today

Last week, data company Snowflake (NYSE: SNOW) reported financial results for fiscal third quarter 2025. The market responded positively to the report, as evidenced by a big jump in Snowflake’s stock price. Today, the price is rising again, with Snowflake stock up 4% as of 10 a.m. ET. But earlier in the day it had been more than this.

This morning, Wedbush analyst Dan Ives published a report saying that artificial intelligence (AI) is starting to revolutionize the software space and noted that Snowflake is a big beneficiary, according to The Fly. This motivated him to recommend buying Snowflake stock and giving it a price target of $190 per share, which still represents an upside of about 9% from the current price.

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Making a connection between Snowflake and the potential of AI is not new. In fact, the company used to call itself just “the Data Cloud Company.” But at the start of fiscal 2025 in February, it revised its description to “the AI ​​Data Cloud company.”

That said, the AI ​​potential hasn’t exactly manifested itself in Snowflake’s financial results. As the chart below shows, the company’s growth has continued to slow even as the AI ​​space continues to expand.

However, the latest earnings season has shown that AI products and tools are catalyzing the growth of several software companies. And for this reason, Ives highlights several companies that will benefit, including Snowflake, which is why the stock rose sharply today.

Snowflake CEO Sridhar Ramaswamy started the third quarter earnings call by saying, “Our Snowflake Cortex AI feature family is showing significant adoption.” And while revenue growth was still lower, this claim can nevertheless be supported.

Like many software companies, Snowflake’s customers pay for the software upfront and then use it over the life of the contract. This contractual revenue is known as Snowflake’s remaining performance obligations. Third quarter commitments rose to $5.7 billion, which was a huge 55% jump year over year. There is therefore a core behind Ives’ bullish stance and investors are understandably optimistic.

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