Snowflake Shares Surge on AI-Driven Demand and Strong Q2 Results

August 28, 2025, 7:30 AM ET - Snowflake Inc. (NYSE: SNOW) saw its shares jump roughly 14% on Thursday after the cloud data platform leader reported robust second-quarter earnings and benefited from heightened investor enthusiasm around artificial intelligence (AI) adoption.

Market participants attributed today’s rally to Snowflake’s pivotal role in supporting enterprises’ AI initiatives. The company’s AI-enhanced “Data Cloud” solutions have seen accelerating uptake as businesses seek to modernize data infrastructures and streamline AI development.

Key Highlights

• Snowflake posted Q2 product revenue of $1.14 billion, up 32% year-over-year, beating consensus expectations of $1.09 billion.
• Adjusted earnings per share rose to $0.35, compared with analysts’ forecasts of $0.27.
• Active AI-enabled accounts on Snowflake’s platform exceeded 6,100, underscoring the growing importance of AI workloads.

In addition to earnings outperformance, Bank of America upgraded Snowflake’s stock from “Neutral” to “Buy,” lifting its price target to $240 based on the company’s expanding AI capabilities via Snowpark and Cortex AI integrations.

“Demand for next-generation data platforms is surging as organizations race to deploy AI at scale,” said one portfolio manager at Janus Henderson Investors, noting that Snowflake is well-positioned amid the AI boom.

Snowflake’s strategic partnerships with cloud providers, notably Microsoft Azure, have further bolstered its market standing, with usage in Europe, the Middle East, and Africa seeing significant growth.

As of today, Snowflake trades at a premium valuation-approximately 143 times forward profit projections-reflecting investor confidence in its long-term growth prospects driven by AI and data collaboration trends.