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Wall Street Is Rethinking Snowflake (SNOW)—Morgan Stanley’s Upgrade Explains Why

Snowflake Inc. (NYSE:SNOW) is one of the 10 Trending AI Stocks on Wall Street Right Now. One of the biggest analyst calls on Tuesday, June 24, was for Snowflake stock. Morgan Stanley upgraded the cloud software maker to “Overweight” from “Equal Weight” and increased its price target by $62 to $262, a 22% upside from Monday’s close.

The rating change seems justified since the stock has outperformed the broader market in 2025. Moreover, the analysts said in a research note how Snowflake has become a “better executing and faster innovating company” under its new CEO, Sridhar Ramaswamy.

“After several years of sharply decelerating growth and mounting investor concerns on its positioning for AI/ML, Snowflake’s secular growth prospects have improved under the leadership of CEO Sridhar Ramaswamy… While it is still early in AI/ML and in the application market, infusing AI-based innovation in the core coupled with a rising priority for customers to modernize their data infrastructure as a necessary step to execute on their AI initiatives has resulted into a stabilization in the core data warehousing business.”

-Analyst Sanjit Singh

Singh further stated how AI will boost growth in the core data warehousing business, with market expansion into both data engineering and AI offering a compound annual growth rate of at least 20% through 2030. Other catalysts paving the way for gains include new customer growth and an improving AI portfolio.

“We have identified large customers with potential six-figure AI workloads on Snowflake, proving out the product-market fit and making us more confident that Snowflake can hit reported targets of ~$100 million AI run rate by year end, setting up this part of the business to contribute meaningfully in FY27 and beyond.”

Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.

While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks in the Spotlight and 10 AI Stocks Getting Wall Street’s Attention. 

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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