AI To Propel Snowflake Stock Higher

Jun. 15, 2025 9:25 AM ETSnowflake Inc. (SNOW) StockSNOW
Royston Roche
28 Followers
(10min)

Summary

  • Snowflake's revamped AI-focused strategy and new product launches are driving strong revenue growth and improved margins, positioning the company well in the AI space.
  • Q1 results showed 25.7% YoY revenue growth, robust RPO, and customer expansion, with management raising full-year product revenue guidance despite a tough macro environment.
  • Margin expansion is gaining traction, with cost-cutting initiatives and AI-driven productivity improvements, though GAAP profitability remains a future goal.
  • I maintain a buy rating on Snowflake, confident in its leadership and AI momentum, but note the need for continued execution given the lack of GAAP profits.

Snowflake corporate headquarters in Silicon Valley

Sundry Photography

Snowflake (NYSE:SNOW) is finally catching the AI opportunity bandwagon. The company’s recent Q1 results demonstrate that its revamped go-to-market strategy and new AI product launches are proving successful. The company’s key metrics were strong, particularly its remaining performance obligations (RPO), which

This article was written by

28 Followers
Royston Roche has over a decade of experience in the capital markets. He started his career with Infosys BPM., where he worked for its clients BNY Mellon and Deutsche Bank. Later, he worked with various investors, research companies, and investment firms like Tech Insider Network. Royston is known for his thoughtful and fair analysis of stocks. He is an expert in fundamental analysis and his investing style is buy-and-hold strategy. Royston has done MBA (Finance) from ICFAI University and an IMC from CFA UK.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRWD, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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