Snowflake stock gets a bold AI call from Wall Street
Snowflake (SNOW) wants to convince Wall Street its next act is larger than cloud data storage.
Bank of America seems to be buying the pitch.
BofA Securities came out more bullish on Snowflake after the company's investor day, reiterating a Buy rating and $300 price target. That estimate suggested about 22.5% upside from Snowflake's June 2 price of $244.82, the brokerage said in its research note.
The verdict is significant as Snowflake struggles to establish a more valuable identity amid the artificial intelligence industry.
It doesn't want to be perceived as just another high-growth software firm with an expensive stock. It aims to be seen by investors as one of the primary platforms big firms will use to organise, regulate and activate their data for AI agents.
That's a much larger narrative.
AI models may get the headlines, but corporate AI needs clean, secure and useable business data. Snowflake is banking on the idea that enterprises will need its platform before AI can go from demos to the day-to-day activities of corporations.
BofA's recent ruling is a sign the bet is getting harder for Wall Street to disregard.
Snowflake's AI data story gets a major test
When Snowflake entered 2026, it had a challenge familiar to software investors.
The company was still developing fast, but Wall Street was getting choosier. Investors sought more than just rise in sales. They sought confirmation that Snowflake could be a lasting AI platform and a clearer route to profitability.
Its latest earnings announcement has given bulls more fuel.
Snowflake announced sales for its fiscal first quarter of $1.39 billion, up 33% from a year earlier. The company said product revenue jumped 34% to $1.33 billion and remaining performance obligations increased 38% to $9.21 billion. The company also said it has 779 clients with trailing 12-month product revenue greater than $1 million.
That sort of customer growth matters because Snowflake's model is built on expanding consumption over time.
Unlike legacy subscription software companies, Snowflake recognizes the majority of its revenue based on consumption. That can mean more upside as consumers add workloads, but it also makes investors more sensitive to any hint of declining usage.
The company alleviated some of those fears by increasing its full-year fiscal 2027 product revenue projection to $5.84 billion, which would be 31% growth. Reuters also said that Snowflake has struck a five-year, $6 billion deal with Amazon Web Services for AI infrastructure, Graviton processors, product integrations and business AI workload migrations.
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That collaboration adds weight to Snowflake's AI narrative.
That means the corporation isn't only talking up enterprise AI demand. It's deepening its relationship with one of the top cloud infrastructure platforms as big customers move more workloads into AI-powered environments.
Snowflake CEO Sridhar Ramaswamy has also pushed to position the company as a control layer for enterprise AI, not just a location where organizations store data.
"AI continues to be a powerful tailwind for Snowflake," Ramaswamy said after the company's fiscal first-quarter results, adding that Snowflake is extending from a trusted foundation for enterprise data into what he called the "control plane for the Agentic Enterprise."
That sentence is useful in explaining why the BofA verdict matters.
If Snowflake becomes a mainstay for how firms govern and deploy AI agents, then its growth narrative could end up looking a lot more robust than a traditional software cycle.
BofA delivers its Snowflake stock verdict
BofA analyst Koji Ikeda said he was "incrementally positive" after Snowflake's investor day, citing more information on how customers are leveraging the company's platform to better AI outcomes.
The Buy rating itself was the least relevant portion of the message.
That was the reason why.
BofA sees Snowflake benefiting from "data gravity," the idea that more organizations would build AI tools around the platforms where their most significant business data resides.
That is the crux of the stunning Wall Street ruling.
Snowflake's AI opportunity is about more than just adding cool tools. This is about more about how companies do data, build apps, safeguard info, and deploy AI agents.
The corporation cited Snowflake aiming for GAAP profitability by the fourth quarter of fiscal 2028. That aim is significant because it gives investors a clearer signal that management is balancing expansion with expense discipline.
BofA said the profitability aim means revenue should increase faster than GAAP operating expenses over time. Declining stock-based pay as a percentage of revenue and cautious recruiting were also key factors of the long-term strategy, the firm said.
This is the kind of message that software investors want to hear now.
The market has been less sympathetic for aggressive spending corporations without exhibiting operating leverage. Snowflake still has to spend a lot but BofA's take is that the business could be able to scale into its valuation without compromising the AI possibility.
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BofA also referred to Snowflake's growing total addressable market. The firm's note said that management now anticipates its opportunity expanding to $460 billion in fiscal 2031 from $225 billion in fiscal 2026.
That's an aggressive take.
But Snowflake's product releases help explain why the company believes the market is getting bigger.
Snowflake CoCo (previously Cortex Code) has been built to aid customers in creating workflows, applications and AI solutions via prompts. CoCo is being rolled out across Snowflake, desktop, VS Code, Microsoft Excel, Slack and mobile interfaces, the company stated.
This growth is essential because it moves Snowflake beyond engineers and data specialists.
Snowflake becomes more than just infrastructure if managed enterprise data is available for AI tools for business users, developers and analysts. It forms part of the daily activity of corporations.
It's the kind of platform transition that Wall Street celebrates when they believe the adoption curve is real.
Wall Street still has to prove Snowflake right
The bullish pronouncement does not eliminate risk.
Snowflake remains a premium software stock, and BofA's $300 price target is based on 14.7 times expected calendar 2027 revenue. That provides little room for disappointment if growth slows or AI product uptake takes longer than anticipated.
There is also fierce competition.
Snowflake is competing for enterprise AI workloads with cloud providers, database firms, data management systems and application software vendors. The company will need to continue to show that its platform isn't simply useful, but essential to how companies construct AI systems.
That's the significance of Snowflake's investor day product releases.
The company also announced Datastream, a managed streaming solution that integrates with Apache Kafka applications and streams data into Snowflake in real time. That might help Snowflake grow farther upstream in the data pipeline where clients handle live data before it gets to analytics and AI applications.
Snowflake also introduced broader features around Apache Iceberg and Horizon Catalog designed to allow enterprises deal with open data formats while retaining governance, security and access restrictions. On June 1, Snowflake storage for Apache Iceberg tables became broadly accessible, giving users the ability to manage Iceberg table files in Snowflake while allowing external query engines to query the same data.
The details may sound complicated but the investor implication is simple.
AI agents require trusted data, secure access and business context. If Snowflake can supply those layers across several platforms, then it becomes harder to replace for large businesses.
Snowflake key investor takeaways
- BofA reaffirms Buy, $300 PT on Snowflake post-investor day
- Snowflake aims to reach GAAP profitability in the fourth quarter of fiscal 2028.
- Product revenue for the fiscal first quarter was $1.33 billion, up 34% year-over-year.
- Remaining performance commitments grew 38% to $9.21 billion.
- New AI and data products are designed to make Snowflake a core part of enterprise AI operations.
The next test will be if Snowflake can translate product excitement into sustainable development of consumption.
That is where the bull case will either break or build up.
Continued consumption growth might be driven by clients using Snowflake's AI tools to build more applications, control more data and automate more procedures. That would make BofA's $300 objective more realistic.
If AI adoption remains stuck in testing or customers go more aggressive with spending optimization, then Snowflake's premium price could be harder to justify.
For now, BofA's conclusion is a clear message to investors.
Snowflake's AI tale might finally be more than a promise.
The company has better growth, a greater ambition for its platform, a clearer profit target and new proof from its investor day that its products are going further into enterprise AI.
That doesn't mean the stock is risk free.
That does make Snowflake one of the more relevant names in software to watch as Wall Street tries to identify actual AI infrastructure winners from businesses just riding the buzz.
Related: Goldman Sachs massively resets Snowflake stock price target for 2026
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This story was originally published June 9, 2026 at 7:47 AM.