Snowflake Rides AI Wave To Biggest Sales Jump Yet

Snowflake SNOW got a major bump from Wall Street, after posting its strongest revenue gains yet and leaning hard into its artificial intelligence strategy.

The company added $94 million in product revenue in Q2 its biggest sequential jump on record. Piper Sandler said growth was fueled by larger customers bringing over new workloads and a boost from the Crunchy Data acquisition. The firm hiked its price target to $285 from $215 and called out Snowflake's 22% increase in sales and marketing staff this year as a clear sign it's chasing more growth.

Goldman Sachs raised its target to $260 from $230, highlighting Snowflake's AI potential through Cortex AISQL and new data science capabilities with Snowflake Connect for Apache Spark. Analysts said AI is already driving adoption, powering 25% of current use cases and half of new customers in Q2.

KeyBanc and Wedbush also lifted their targets after Snowflake topped margin estimates at 9.0% versus 8.3%. The upbeat results lifted other data names too, with Datadog DDOG, Elastic, MongoDB MDB and Oracle ORCL all trading higher.