Needham Raises PT on Snowflake (SNOW)

Snowflake Inc. (NYSE:SNOW) has gained more than 98% in May. A large proportion of these gains came during the last three days of the month after the company reported fiscal Q1 2027 earnings on May 28. Snowflake Inc. (NYSE:SNOW) ranks among our Best Performing Stocks in May.

​Recently, on June 3, Needham raised the firm’s price target from $300 to $330, while maintaining a Buy rating on the stock. The positive rating came after the company’s annual user conference. Following the conference, Needham’s confidence in the overall strategic direction of CEO Sridhar Ramaswamy remains high. The firm noted that the CEO’s strategy has started to translate into financial numbers.

The firm finds the company’s core business to be growing strongly. Needham specifically highlighted CoWork and CoCo as driving tremendous adoption and growth, suggesting Snowflake’s AI-native product expansion is resonating with customers and becoming a meaningful contributor to the company’s momentum.

​Snowflake Inc. (NYSE:SNOW) during its fiscal Q1 2027 results posted $1.39 billion in revenue, which came in ahead of the expectations of $1.32 billion. The EPS of $0.39 also topped the consensus of $0.32. CEO Sridhar Ramaswamy highlighted the 33% year-over-year revenue growth and 34% product revenue growth as a clear AI inflection point. Management noted that customer momentum was strong as the company added 616 net new customers, up 38% year over year, and now counts 779 customers spending over $1 million annually.

​Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform for organizations in the United States and internationally.

While we acknowledge the risk and potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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