Snowflake stock analyst reveals surprising stock forecast
A cloud software company that has spent years trying to prove its growth story still has room to run, just gave Wall Street a stronger reason to believe.
Snowflake reported fiscal first-quarter results that showed renewed momentum across its core business and its artificial intelligence products, giving analysts a fresh look at a stock that has often carried a demanding valuation.
Snowflake (SNOW) said product revenue rose 34% from a year earlier to $1.33 billion, while total revenue increased 33% to $1.39 billion. The company also said net revenue retention was 126%, and it ended the quarter with 779 customers generating more than $1 million in trailing 12-month product revenue.
In a Bank of America note given to TheStreet, analyst Koji Ikeda reiterated a Buy rating on Snowflake and raised the firm's price objective to $300 from $205. Based on the $175.26 share price listed in the note, that target implies roughly 71% upside.
BofA sees stronger evidence behind Snowflake's bull case
The biggest takeaway from the note was not just that Snowflake beat expectations. BofA said the quarter offered stronger validation that Snowflake remains a share gainer in a large and expanding AI business intelligence opportunity.
The firm pointed to Snowflake's product revenue growth, which accelerated from 30% in the prior quarter to 34% in the first quarter. It also highlighted the company's fiscal second-quarter product revenue outlook, which calls for 30% growth from a year earlier.
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Investors were watching to see whether Snowflake's growth could hold up after a strong first quarter, especially as software companies face more pressure to prove that AI demand is turning into real consumption.
BofA said that concern was put to rest by Snowflake's second-quarter outlook.
The company also raised its full-year fiscal 2027 product revenue forecast to $5.84 billion, up from its prior guidance of $5.66 billion. That new outlook implies 31% growth for the year, compared with the prior 27% forecast.
Snowflake's AI products are gaining traction
Snowflake said more than 13,600 accounts are now using its AI capabilities. Accounts using Snowflake Intelligence more than doubled from the prior quarter, while Cortex Code is already being used across more than 7,100 accounts.
BofA highlighted Cortex Code adoption as one of the more important signs that Snowflake's AI products are moving beyond early testing. The note said management commentary around the product was positive from an adoption perspective, and that consumption trends appear to be improving.
That is important for Snowflake because the company's revenue model is tied to platform usage. If AI tools drive customers to consume more compute, data, and platform resources, they could become a larger growth lever across the business.
Snowflake adds two more AI catalysts
Snowflake also announced a $6 billion multi-year infrastructure commitment to Amazon Web Services over five years, the company's largest AWS commitment to date.
The expanded agreement is designed to support enterprise AI adoption, workload migrations, deeper product integrations, and broader go-to-market work through AWS Marketplace.
BofA said the announcement was bullish because Snowflake likely does not want to overcommit at those spending levels. The note said the assumptions behind the commitment may be conservative.
Snowflake also signed a definitive agreement to acquire Natoma, an enterprise Model Context Protocol platform for AI agents.
The deal is meant to help Snowflake customers connect AI systems to enterprise applications, databases, APIs, and tools with stronger governance and identity controls. That could strengthen Snowflake's position as companies look for safer ways to use AI agents across business workflows.
Snowflake's valuation still leaves little room for error
BofA's new $300 price objective is based on 14.7 times calendar 2027 estimated revenue.
That represents a premium to Snowflake's infrastructure software peers, but BofA said the valuation is warranted given the company's growth profile, execution trend, and AI business intelligence leadership.
A slowdown in consumption, softer AI adoption, weaker guidance, or stronger competition could pressure the stock. Snowflake also remains exposed to broader software valuation swings, especially if investors become less willing to pay high multiples for growth.
The firm sees Snowflake's latest quarter as evidence that product revenue growth is accelerating, AI demand is starting to show up in the numbers, and management has new catalysts ahead with Snowflake Summit and its upcoming investor session.
Related: Bank of America tweaks Snowflake stock price target before earnings
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This story was originally published May 29, 2026 at 11:17 AM.