The Cloud’s Next Frontier: Jefferies Sees Snowflake Hitting $300 on Explosive AI Demand
The artificial intelligence boom isn’t just about the chips and hardware; it’s also about the massive amounts of data powering the next generation of intelligent applications. And right now, all eyes are on the data cloud champion, Snowflake (SNOW), which just received a major vote of confidence from Wall Street.
Investment firm Jefferies recently hiked its price target on Snowflake stock to a bold $300, up from $270, while maintaining a coveted “Buy” rating on the shares. The reasoning? An overwhelming signal of “robust AI-driven demand” that’s translating directly into business growth.
A Clear Signal From the AI Pipeline
Jefferies’ bullish stance is rooted in its proprietary survey of the company’s partners, which pointed to surging pipeline strength and optimistic growth outlooks. For the analysts, the writing is on the wall: Artificial Intelligence is the primary engine driving incremental growth for the data cloud platform.
This isn’t a speculative bet on a future technology; it’s a reflection of how enterprises are adopting the cloud platform right now. The firm’s analysis positions Snowflake as a “Top Pick,” suggesting it’s poised for a strong second half of its fiscal year. They believe management’s current revenue guidance is likely conservative, leaving room for the company to outperform as AI adoption accelerates.
Snowflake’s AI Arsenal
The excitement on Wall Street directly correlates to the innovative work happening within the company. Snowflake has spent the last few years transforming itself into a central hub for AI development, moving far beyond its roots as a cloud-based data storage platform.
At the heart of its strategy is the **Snowflake Cortex** platform, a fully managed service that integrates advanced AI and machine learning solutions directly into the data cloud. This gives customers the ability to leverage a suite of intelligent features, from running large language model (LLM) functions to developing their own custom models, all without their data ever leaving the secure Snowflake environment.
Further bolstering its AI credentials, the company has released its own powerful large language model, **Snowflake Arctic**, and announced a number of key partnerships. For instance, a collaboration with NVIDIA is aimed at accelerating machine learning workflows, helping customers train and deploy models more efficiently. Features like **Snowflake Copilot**, an LLM-powered assistant, also simplify data analysis for everyday users, making AI tools more accessible across the enterprise.
The Numbers Tell the Story
The company’s focus on the AI Data Cloud is already translating into impressive results. In a recent quarter (Q2 of fiscal year 2026), Snowflake’s product revenues grew 32% year-over-year. More tellingly, nearly 50% of all new customer wins during that period were influenced by an AI use case, demonstrating that the AI thesis is a clear factor in attracting new business. In fact, over 6,100 accounts are already using Snowflake’s AI capabilities on a weekly basis.
With a growing customer base, which now exceeds 12,000 total customers—including hundreds that spend over $1 million annually—the data cloud provider appears to be firmly positioned to capitalize on the massive enterprise shift toward AI.
As the company prepares to release its third-quarter earnings on December 3, all signs point to a continued upward trajectory. For investors, the Jefferies upgrade underscores a powerful narrative: In the new AI era, the companies that control the data are the ones set to soar.
