Snowflake Stock Jumps 45% In 2025 As AI Data Cloud Drives Record Revenue

Zinger Key PointsSnowflake trades near its 52-week high as product innovation and key partnerships drive 45% year-to-date stock growth.The company’s usage-based model and strong Q1 results support bullish outlook, with analysts projecting more upside ahead.Up Next: Get 5 Dark Horse Stocks Wall Street Is Quietly Loading Up OnSnowflake Inc.SNOW, an AI data cloud company, is experiencing significant upward momentum, with its stock trading near its 52-week high of $226.60 and well above its 50-day moving average of $197.41.This surge is fueled by a combination of strong financial performance, strategic product innovations, and aggressive inorganic growth strategies, including key partnerships and acquisitions.Stock Momentum And Financial HighlightsSnowflake’s stock has performed well year-to-date, rising 45%, and gaining 48% in the last three months, significantly outperforming the NYSE Composite Index’s gains of 8% and 12% over the same periods.Also Read:Snowflake Just Hired 500 Sellers—Is This The Start Of A Full-Scale AI Land Grab?This trajectory is supported by the company’s recent financial disclosures. On May 21, Snowflake reported afirst-quarter revenueof $1.04 billion, marking a 26% year-over-year increase and exceeding analyst estimates of $1.01 billion.Snowflake earns most of its revenue through a consumption-based model, charging customers based on the compute and storage resources they use on its platform. The company also generates revenue from professional services, including consulting and training.Its product revenue, primarily generated through a consumption-based model that charges customers based on their usage of compute and storage resources, also grew by 26% year-over-year, reaching $996.8 million.Looking ahead, Snowflake has provided an optimistic outlook, projecting second-quarter product revenue between $1.035 billion and $1.04 billion, representing a 25% year-over-year growth. The company anticipates full-year product revenue to reach $4.33 billion, also indicating a 25% year-over-year increase.Strategic Growth And AI FocusThe company’s strategic focus on product innovation and expansion has been a critical factor in its recent success. On February 27, Snowflake announced anexpanded partnershipwithMicrosoftMSFT, integrating Cortex Agents directly into Microsoft 365 Copilot and Teams.This collaboration leverages OpenAI’s models within Cortex, enabling AI agents to process both structured and unstructured data, which significantly enhances user access and productivity.CEOSridhar Ramaswamyhas emphasized Snowflake’s AI-centric vision, noting that Cortex also supports models from prominent AI companies such as Anthropic,Meta PlatformsMETA, and DeepSeek, thereby solidifying Snowflake’s position as a central hub for enterprise AI solutions.In another strategic move on June 18,IntappINTAannounced a partnershipwith Snowflake to enhance deal insights through AI-powered analytics specifically for the capital markets and legal sectors.Furthermore, on June 3, Snowflakerevealed its plansto acquire Crunchy Data, a move aimed at integrating advanced PostgreSQL support into its AI Data Cloud.This acquisition is designed to meet the increasing demand for secure and reliable AI databases, allowing Snowflake to tap into the $350 billion global database market.Analyst Confidence And Competitive EdgeDespite operating in a highly competitive landscape against formidable players likeAmazon.comAMZNRedshift,AlphabetGOOGL(GOOG) Google BigQuery, Microsoft Azure Synapse Analytics, and Databricks in the cloud data warehousing and data lakehouse market, Snowflake continues to demonstrate a strong competitive edge.Analyst sentiment largely remains bullish on Snowflake’s future. Aconsensus price forecastfrom 37 analysts projects the stock to reach $227.56. WhileUBSissued the highest forecast at $265 on June 4, 2025,Morgan Stanleyset the lowest at $185 on April 16, 2025. More recent ratings fromMorgan Stanley,CICC, andWells Fargoaverage $245.67, suggesting a potential upside of 9.6% for the stock.Piper Sandleranalyst Brent Bracelin, on May 22, raised Snowflake’s price forecast from $175 to $215, calling it atop growth pickfor 2025. Bracelin’s bullish view hinges on Snowflake hitting the “Rule of 50”: 25% product revenue growth and 25% free cash flow margins at $4 billion Annual Recurring Revenue.Bank of America’sBrad Sills, on June 3, identified Snowflake as akey beneficiary of AI and cloud trends, noting that data analytics continues to be a top spending priority according to his survey.CNBC’sJim Cramer, on June 4, praised CEO Sridhar Ramaswamy,describing him as thoughtful, sharp at closing deals, and full of momentum.Adding to the positive outlook,JP Morgananalyst Mark Murphyhighlighted system integrators, noting that Snowflake produces results for its customers as the company expands its AI and data platform strategy. They said, “Once Snowflake starts to really get used…it grows like wildfire.”Price Action:SNOW stock is trading higher by 0.46% to $224.53 at last check Wednesday.Loading...Loading...SNOWSnowflake Inc$221.86-0.73%Stock Score Locked: Want to See it?Benzinga Rankings give you vital metrics on any stock – anytime.Reveal Full ScoreEdge RankingsMomentum91.88Growth14.95QualityN/AValue5.90Price TrendShortMediumLongOverviewAMZNAmazon.com Inc$222.371.37%GOOGLAlphabet Inc$177.962.06%INTAIntapp Inc$46.82-0.93%METAMeta Platforms Inc$733.981.85%MSFTMicrosoft Corp$503.381.36%Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .Posted In:NewsTop StoriesTechBriefsStories That Matterwhy it's moving