Shares of Snowflake surged to $159.25 on a day when major indices fell roughly 1%, as fresh analyst commentary spotlighted what Wall Street sees as an undervalued AI growth story. According to 37 analysts, SNOW carries a consensus Buy rating with an average 12-month price target of $243.22 — implying more than 50% upside from today's price. That gap between where the stock sits and where analysts say it should be is the core tension driving today's move.
Wall Street Sees a Beaten-Down Stock With Room to Run
Snowflake has lost about 35.7% year-to-date in 2026 , with shares trading well off their 52-week high of $280.67 . At around $141–$159, the stock sits near the lower end of its 52-week range, making the entry point look more attractive than it did in 2024 or early 2025. That depressed starting point gives bullish calls extra punch: even a modest recovery toward consensus targets would deliver outsized returns.
AI Products Are Growing, But Haven't Yet Turned Into Profits
In Q4 fiscal 2026, Snowflake posted product revenue of $1.23 billion, up 30% year-over-year, with committed future contracts totaling $9.77 billion, up 42%.
The company hit a $100 million AI revenue run rate ahead of schedule , fueled by tools that let businesses build AI assistants directly on their data. But Snowflake also reported a net loss of $1.33 billion for the full fiscal year — meaning investors are paying for growth they hope will eventually become profit.
Earnings on May 20 Are the Next Make-or-Break Moment
Snowflake is preparing for its upcoming earnings report, with Wall Street expecting roughly $0.32 EPS and $1.32 billion in revenue.
A guidance beat could help the stock recover part of its year-to-date losses, but a miss would likely extend selling pressure into summer.
Competition and Lawsuits Cloud the Bull Case
Snowflake faces stiff competition from Amazon and Oracle — Amazon's cloud chip business alone now exceeds a $20 billion annual revenue run rate, growing at triple-digit percentages.
A shareholder class-action lawsuit alleging the company misrepresented how much revenue it earns from actual customer usage has added further pressure.
Bottom line: Today's rally reflects investors betting the selloff overshot. But with earnings days away and profitability still absent, buying Snowflake here remains a high-conviction wager that AI will eventually turn data consumption into durable cash flow.