Is Snowflake the Next Big AI Stock?

Snowflake (NYSE:SNOW | SNOW Price Prediction) stock had a glorious, more-than-20% single-day melt-up when it delivered an incredible blowout number. Indeed, it was one of the best quarters in recent memory for the data cloud firm as new CEO Sridhar Ramaswamy delivered not only a top- and bottom-line beat, but also shed light on the firm’s role as an AI enabler in this ongoing technological revolution. While the second quarter growth of nearly 32% may be viewed as some as a high water mark of sorts, I’m inclined to think that Snowflake is reaching an inflection point of sorts as demand for data and AI infrastructure looks to stay hot for years to come. 

Undoubtedly, shares of Snowflake don’t look cheap. They never have. However, with the fresh revenue guidance hike for its fiscal year 2026, and more bullish analysts stepping forward, I do think that SNOW stock is starting to look like one of the next big momentum trades to get behind as AI investors look past the semiconductors and to the AI cloud.

The AI cloud is booming. Snowflake’s big post-Q2 melt-up may not be its last

Indeed, chasing a hot post-earnings pop can be a risky move, especially for value-conscious investors. With shares now dipping 5% off those heights, though, now could be the prime time to punch a ticket into a $76 billion firm with a quarter that may very well represent the tip of the growth iceberg.

Of course, it takes more than one standout quarter to crown a company as the next big thing in AI. And while I still think expectations are too low for the data warehousing firm, I would seek to build a position steadily over time as a way to counter all the post-earnings volatility we’ve witnessed. Is a 20% single-day surge overdoing it, even for a blockbuster quarter?

The latest 5% dip seems to suggest such. However, I’m inclined to believe that the sudden buying spree following the number was not only warranted, but perhaps underdone if this is, in fact, the start of a demand trend that could span years. Either way, this latest mini-correction seems like a terrific buying opportunity for those who were seriously impressed by that latest quarter and what it could mean for Ramaswamy floors it on AI.

Indeed, Snowflake has pulled the curtain on a slew of AI offerings, many of which have gone relatively under the radar. Whether we’re talking about Cortex AI, the rise of Data Agents, or its convenient AI tools, I find Snowflake to be a name that has all the makings of the next big AI stock, if it isn’t already after that latest surge to new 52-week highs.

Snowflake shares could be headed to $285, says Hedgeye

With Hedgeye recently naming Snowflake as its new “long idea,” with a $285 price target, which implies close to 25% in additional upside from Wednesday’s closing price, I wouldn’t be afraid to be a buyer after earnings, especially now that some of the initial over-excitement has been put in check in the sessions that followed last week’s big reveal.

Notably, Hedgeye noted that the company “is successfully transforming from a pure data warehouse into the comprehensive central nervous system for enterprise AI and data infrastructure.” That’s big. Combined with “rapidly growing AI adoption,” it seems like the stage is set for a run to $285 and perhaps $300 shortly after that.

As Snowflake makes a deeper dive into AI and analytics, I do think that it has what it takes to stand tall relative to its rival, Databricks, in the data software scene. After such an applaud-worthy quarter, I think it’s time to give SNOW stock a closer look as it looks to keep the growth surprises up for its coming quarters.

So, is Snowflake the next big AI stock? I think it has a good chance, given its strong management, stacked AI product lineup, and the potential for adoption to surge further.