SNOW
Snowflake just gave the AI trade a fresh jolt
Snowflake’s latest quarter did what every growth investor secretly hopes for: it made the AI story feel a little less like a PowerPoint and a little more like a business. The company said second-quarter product revenue jumped 37% year over year to $1.49 billion and lifted its fiscal 2027 product revenue outlook to $6.07 billion from $5.84 billion.
That was enough to send Snowflake shares soaring more than 22% intraday, with the stock briefly trading near $384.56 and hitting its highest level since December 2021. In other words, the market looked at Snowflake and said, “Okay, maybe this thing really is becoming the plumbing for enterprise AI.”
Why the ETF went full rocket ship
Enter SNOU, the T-Rex 2X Long SNOW Daily Target ETF — basically a caffeine shot with a ticker symbol. Because it tries to deliver 2x Snowflake’s daily move, a big rally in SNOW turns into a much bigger party for SNOU.
That’s exactly what happened Thursday:
- SNOU jumped as much as 38.45% to $79.21 at the time of publication
- It opened at $83.36 and briefly touched $86
- The move pushed it close to its 52-week high of $85.51
For traders, that’s the attraction. For everyone else, it’s a reminder that leverage is thrilling right up until it isn’t.
The AI premium is back, with a catch
Wall Street also piled on with higher price targets, with firms like Rosenblatt, Needham, Cantor Fitzgerald, Canaccord Genuity, and JPMorgan all raising their numbers. The common thread: stronger AI adoption, better core consumption, and signs Snowflake can turn that demand into actual dollars.
There is one wrinkle, though. Snowflake said its non-GAAP product gross margin is now expected to be 74%, reflecting a heavier mix of AI workloads that are a bit less profitable. So yes, the AI engine is revving. It’s just not a free lunch.
Big picture
Snowflake’s report is another reminder that the market still pays up for companies that can say “AI” and show the receipts. But if you’re playing it through a 2x ETF like SNOU, you’re not just betting on Snowflake’s growth — you’re also signing up for the volatility roller coaster that comes with it.