Stifel Raises Snowflake Price Target to US$450 Amid AI-Driven Growth

Snowflake Inc. (SNOW) received a boost in analyst sentiment following a Stifel Financial update that raised its price target to US$450, reflecting expectations of sustained revenue growth driven by artificial intelligence (AI) integration. The brokerage maintained a buy rating, citing robust client acquisition and migration activity alongside a 300-basis-point acceleration in product revenue compared to the prior quarter. Snowflake’s year-over-year product revenue growth reached 37%, marking three consecutive quarters of outperformance over analyst estimates and surpassing the trailing 12-month growth rate of 31%. The company’s fiscal year 2027 revenue guidance was raised by US$230 million, exceeding the prior quarter’s beat by approximately US$75 million, while Q3 product revenue guidance sits at 37%-38%. Stifel also projected sustained annual product revenue growth above 30%, up from its prior expectation of over 25%. Management attributed the growth to a compound effect of strong core workloads and expanding AI product usage, while operational strategies aim to expand operating margins by offsetting rising cloud costs through controlled hiring. Other analysts echoed the optimism: Morgan Stanley raised its target to US$470, Canaccord Genuity and Needham both set US$450 targets, and Cantor Fitzgerald followed with US$430. Snowflake’s stock, trading at US$306, has climbed 84% over the past six months, underscoring its momentum in a sector increasingly defined by AI-driven demand.