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AI panic? Wells Fargo says chill
Snowflake has spent a chunk of this year getting treated like the kid in class who might get replaced by the shiny new AI robot. But Wells Fargo’s latest note says the opposite: AI could actually be Snowflake’s growth engine. The bank kept its Overweight rating and cranked its price target to $500 from $320, which implies roughly 85% upside from Tuesday’s close.
The new story: more AI, more data, more spending
Analyst Ryan MacWilliams argues that AI agents are nudging customers to use Snowflake more, not less. The logic is pretty simple: if companies want AI to do useful stuff, they need more data in the cloud, more storage, and more spending on the platform. In Wells Fargo’s customer survey, AI was tied to higher product usage and more data uploads for AI integration.
That’s a neat plot twist if you’ve been following the whole “SaaSocalypse” narrative, where investors worried autonomous AI would gut seat-based software models. Snowflake, according to Wells Fargo, looks more like a beneficiary than a victim.
Why the Street is paying attention
The note also nudged Snowflake into a more expensive company club, with MacWilliams saying it deserves a valuation closer to names like Cloudflare and CrowdStrike. Translation: if investors start believing Snowflake is an AI infrastructure pick, not just a data warehouse, the multiple can stretch fast.
Big picture
Snowflake’s stock doesn’t need a product launch or earnings blowout to move right now — sometimes a strong analyst call is enough to reset the vibe. And in a market where “AI disruption” has been the scary headline, a Wall Street note saying “AI is helping, actually” can hit like a bucket of cold water on the bears.