Snowflake price targets cut amid AI competition and softer software budgets

Analysts from Truist Financial and KeyBanc have lowered price targets for Snowflake due to increased competition in the AI software market and a slowdown in enterprise software budgets for 2026. Truist cut its target from $175 to $125, while KeyBanc reduced theirs from $235 to $200 but maintained an Overweight rating, signaling confidence in Snowflake's growth potential. Despite these challenges, Snowflake is expanding its AI adoption with over 9,100 accounts and expects product revenues near $5.66 billion for fiscal 2027, benefiting from a rapidly growing AI software market projected to reach nearly $995.5 billion by 2030. The company faces uncertainty from weaker U.S. federal results and a moderated growth outlook but remains positioned in a high-growth sector.