Observed Signal · Jul 29, 2026 · Analyst Price Target Update · Source: CNBC Investing · Impact: 3/5 · Sentiment: Positive
Wells Fargo Raises Snowflake Target to $500
Wells Fargo raised its price target for Snowflake to $500 from $320 and reiterated an overweight rating, saying artificial intelligence is accelerating Snowflake’s growth and driving higher customer spend. Analyst Ryan MacWilliams argued Snowflake is an AI beneficiary that can scale without AI-related capex or model exposure. The target implies roughly 85% upside from the prior close. Wells Fargo cited survey results showing increased customer consumption and data uploads tied to AI. Snowflake currently trades at about 127 times forward earnings, and Wells Fargo suggested its multiple should be closer to peers such as Cloudflare and CrowdStrike. The article notes Snowflake had been down more than 44% earlier in the year but is now up over 20% year-to-date, and 46 of 52 analysts rate it a buy or strong buy, per LSEG.
Major bank raised a high price target citing AI-driven demand for cloud data warehousing, influencing investor sentiment and valuation benchmarks for enterprise data platforms.
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Key Takeaways & Evidence Grounding
- Wells Fargo raised its Snowflake price target to $500 from $320 and reiterated an overweight rating.
- The new $500 target implies nearly an 85% gain from Tuesday’s close.
- Wells Fargo analyst Ryan MacWilliams said AI agents are accelerating customer spend and consumption of Snowflake products.
- Snowflake was down more than 44% earlier this year but is up over 20% year-to-date.
- Snowflake trades at about 127 times forward earnings; Wells Fargo compared it to Cloudflare (204x) and CrowdStrike (139x); 46 of 52 analysts rate Snowflake a buy or strong buy, according to LSEG.
Connected Companies & Entities
5 Entities mapped“Artificial intelligence is accelerating the next phase of Snowflake’s growth, and it’s raising Wells Fargo’s outlook for the stock....”
“Artificial intelligence is accelerating the next phase of Snowflake’s growth, and it’s raising Wells Fargo’s outlook for the stock....”
“It also hiked its price target to $500 from $320, the highest level on the Street, according to LSEG....”
“He said that the company should trade closer to Cloudflare and Crowdstrike’s multiples, which are 204 and 139 times, respectively....”
“He said that the company should trade closer to Cloudflare and Crowdstrike’s multiples, which are 204 and 139 times, respectively....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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Snowflake Jumps 35% on AI Momentum
Snowflake shares surged about 35% on May 28, 2026 after the company beat fiscal first-quarter adjusted earnings and revenue expectations, raised guidance, and announced expanded AI initiatives. The company said it will spend $6 billion on compute from Amazon and is expanding use of Amazon’s in-house chips for AI workloads. Finance chief Brian Robins said tools such as Cortex Code and Snowflake Intelligence are creating a “step function change” in AI-driven revenue potential and internal productivity. Snowflake added 616 net new customers in the quarter, has 779 customers spending more than $1 million on a trailing 12-month basis, provided fiscal Q2 margin and product revenue guidance, and disclosed intent to acquire AI startup Natoma. The results helped lift software peers and eased concerns about AI reducing SaaS demand.
Snowflake Soars; HSBC Upgrades Stock
Snowflake shares jumped more than 36% in their biggest single-day gain after the company announced a $6 billion compute commitment with Amazon and reported stronger-than-expected fiscal first-quarter results driven by demand for its AI tools such as Cortex Code (CoCo). HSBC upgraded Snowflake from hold to buy and raised its price target to $289 from $176, citing CoCo’s monetization potential and growing account adoption. Despite the surge, Snowflake is up about 9% year-to-date and remains a consensus buy among most analysts covering the stock.
Snowflake jumps 22% on strong results and AI coding momentum
Snowflake shares surged 22% in extended trading after the data analytics company delivered strong fiscal Q2 results that beat expectations. Adjusted earnings per share hit 62 cents versus 45 cents expected, while revenue climbed 35% year over year to $1.55 billion, above the $1.48 billion consensus. The net loss narrowed to $191.7 million from $297.9 million a year earlier. The company highlighted momentum for its CoCo AI coding agent, which now counts 9,100 accounts, up more than 2,000 in the quarter. For Q3, product revenue guidance of $1.59 billion exceeded estimates, and management raised its full-year product revenue forecast to $6.07 billion while expanding its adjusted operating margin outlook to 14.5%. Following the report, Morgan Stanley and Bank of America raised their price targets to $470, implying roughly 54% upside, and most of the 52 covering analysts maintain buy ratings. Shares had already gained 39% in 2026 through Wednesday's close.
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