Snowflake upgraded to Buy as AI-driven growth and strong revenue retention boost outlook

Snowflake Inc. is recognized as a leading AI beneficiary with 30% year-over-year product revenue growth and a stable 125% net revenue retention rate, despite not being GAAP profitable. Management forecasts 27% product revenue growth, driven by innovations like agentic AI and Snowflake Intelligence. The company’s strong cash flow and strategic position in AI data management justify its valuation premium. Analyst Julian Lin upgraded Snowflake to a Buy rating, highlighting its growth potential and reasonable valuation amid software sector challenges.