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Key Takeaways
- Wedbush upgraded Snowflake as analysts predicted the age of artificial intelligence software has arrived.
- Wedbush said Snowflake was in the “sweet spot” to capitalize on demand for AI products.
- The analysts added that it was time for the broader software sector to “join the AI party”.
Shares of Snowflake (SNOW) rose about 3% Monday afternoon as Wedbush upgraded the stock, saying the cloud software provider is in the “sweet spot” to capitalize on booming demand for artificial intelligence (AI) products.
The bank raised its rating on the stock from ‘neutral’ to ‘outperform’. It has a new price target of $190.
Wedbush argued that “in our view, the AI software era has now arrived.” The analysts wrote that the first major phase of AI was driven by major players including Microsoft (MSFT), Amazon (AMZN) and Alphabet’s Google (GOOGL). They said it is now “time for the broader software space to join the AI party.”
Wedbush says Snowflake’s “optimization phase” is over
The analysts explained that Snowflake’s “optimization phase” is over and that it continues to show strong improvement in quarter-over-quarter dollars “added for product revenues heading into a significant AI-driven FY26.” They see the business being boosted by AI use cases over the next twelve to eighteen months.
In the same report, Wedbush also upgraded shares of data analytics company Elastic (ESTC) and raised price targets on Palantir Technologies (PLTR) and Salesforce (CRM).
Despite today’s progress, Snowflake shares remain down 13% this year.
Trading view
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