Snowflake’s Stock Stumbles As AI Jitters Grip Wall Street

Snowflake ( (SNOW) ) has fallen by -11.67%. Read on to learn why.

Snowflake shares fell 11.67% over the past week as the broader sell-off in software and AI-related names intensified, with investors increasingly worried that rapid advances in generative and agentic AI could undermine traditional software business models. Fears that companies might bypass established platforms and connect directly to powerful AI models have added to the pressure, even as Snowflake’s stock had recently been trading near 52-week highs and carries a rich valuation by conventional metrics.

Despite the pullback, Snowflake’s operating performance and strategic positioning in AI remain strong. The company’s AI Data Cloud serves more than 12,000 customers, including 766 members of the Forbes Global 2000, and its latest reported quarter showed 28% year-over-year revenue growth to $1.21 billion, with better-than-expected earnings. Snowflake has also deepened its role at the center of the AI ecosystem through two separate $200 million deals with Anthropic and OpenAI, aimed at bringing advanced AI models and agentic capabilities directly into its data platform.

Top Wall Street analysts argue that the recent weakness in Snowflake’s share price reflects market sentiment rather than deteriorating fundamentals. Wedbush’s Daniel Ives calls expectations of a software “Armageddon” overblown and sees Snowflake as a key “trusted layer” between enterprise data and external AI models, benefitting as companies push more sensitive data into AI workflows. While some analysts, such as Barclays’ Raimo Lenschow, remain cautious with Hold ratings, the overall consensus on Snowflake is still a Strong Buy, with average price targets implying substantial upside from current levels once the AI-driven software panic subsides.