Snowflake Stocks Increase as Wedbush Highlights AI "Sweet Spot" in Upgrade

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The Key Takeaways

Wedbush upgraded Snowflake when analysts predicted artificial intelligence software is now here.
Wedbush said Snowflake was in the "sweet spot" to benefit from AI product demand.
The analysts added that it was time for the broader software sector to "get in on the AI party."

Snowflake shares (SNOW), which are a cloud computing software company, gained about 3 percent on Monday after Wedbush raised the price of the stock. “sweet spot” Benefit from the growing demand for Artificial Intelligence (AI) Products.

The bank raised its rating on the stock to "outperform" from "neutral." A new $190 price goal has been set.

Wedbush claimed that “the AI Software era is now here in our view.” They wrote that in the beginning, AI was driven by large players like Microsoft (MSFT), Amazon’s (AMZN), Alphabet’s (GOOGL) Google. Now it’s a new phase, they said. “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."

Wedbush has also raised price targets on Palantir Technologies and Salesforce.

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

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