Snowflake stock gets a bold AI call from Wall Street

Bank of America upgraded Snowflake to a Buy rating with a $300 price target, citing its AI data platform potential, while Snowflake reported a 33% revenue increase to $1.39 billion in Q1 fiscal 2027 and secured a $6 billion AI infrastructure deal with Amazon Web Services. CEO Sridhar Ramaswamy framed Snowflake as a 'control plane for the Agentic Enterprise,' positioning it as critical for enterprise AI adoption beyond data storage." "article": "Snowflake (SNOW) is pushing its role as a key AI infrastructure provider, and Wall Street is taking notice. Bank of America Securities raised its price target to $300, a 22.5% upside from Snowflake’s June 2 price of $244.82, while maintaining a Buy rating. The move reflects growing investor confidence in Snowflake’s ability to transition from cloud data storage to a foundational platform for enterprise AI, where clean, secure data is essential for AI model functionality. Snowflake’s latest earnings report reinforced its momentum. For its fiscal first quarter, the company recorded $1.39 billion in total revenue, a 33% year-over-year increase, with product revenue rising 34% to $1.33 billion. The company also reported 779 clients generating over $1 million in trailing 12-month product revenue, signaling strong customer retention and expansion. Snowflake’s consumption-based revenue model—where usage drives growth—remains a key driver, though investors remain watchful for any slowdown in demand. The company’s AI ambitions were further bolstered by a $6 billion, five-year deal with Amazon Web Services (AWS) for AI infrastructure, Graviton processors, and business AI workload migrations. This partnership underscores Snowflake’s strategy to integrate deeply with cloud providers as enterprises accelerate AI adoption. CEO Sridhar Ramaswamy emphasized this shift, calling Snowflake the 'control plane for the Agentic Enterprise,' a framework where the company manages data workflows for AI-driven business operations. Analysts note that Snowflake’s success hinges on proving it is more than just a data warehouse—it must demonstrate how its platform enables AI at scale. The Bank of America upgrade suggests Wall Street is increasingly willing to bet on Snowflake’s vision, particularly as AI adoption moves beyond experimental phases into core business functions. With revenue growth projections for fiscal 2027 now at $5.84 billion (31% YoY), the company’s financial trajectory aligns with its strategic pivot toward AI infrastructure.