Snowflake Stock Rises as Wedbush Notes AI ‘Sweet Spot’ in Upgrade

Shares of Snowflake (SNOW) gained about 3% Monday afternoon as Wedbush upgraded the stock, saying the cloud software provider is in the “sweet spot” to benefit from the booming demand for artificial intelligence (AI) products.

The bank raised its rating on the stock to “outperform” from “neutral.” It has a new price target of $190.

Wedbush argued that “the AI Software era is now here in our view.” The analysts wrote that the first big phase of AI was driven by big players, including Microsoft (MSFT), Amazon (AMZN), and Alphabet’s (GOOGL) Google. They said now it’s “time for the broader software space to get in on the AI Party.”

Wedbush Says Snowflake’s ‘Optimization’ Phase Over

The analysts explained that Snowflake’s “optimization” phase is over, and it continues to show strong improvement in quarter-over-quarter dollars “added for Product Revenues heading into an important AI driven FY26.” They see the company getting a lift “from AI use cases over the next 12 to 18 months.”

In the same report, Wedbush also upgraded shares of data analytics company Elastic (ESTC), and raised the price targets for Palantir Technologies (PLTR) and Salesforce (CRM).

Despite today’s advance, shares of Snowflake remain 13% lower year-to-date.