Snowflake vs. The $130B Giant: Can This New AI "Agent" Save the Stock?

From Promises to Production: The Agentic AI Shift The narrative has shifted from potential partnerships to tangible products. In November 2025, Snowflake delivered on its collaboration with Anthropic by launching Snowflake Intelligence and new Agentic AI capabilities. This is a critical pivot: instead of just storing data, the platform now hosts AI agents that can actively "talk" to and act on enterprise data using natural language. For investors, this proves Snowflake can successfully productionize its AI initiatives by turning its data warehouse into an active business assistant.

The $130 Billion Threat The competitive landscape, however, has become significantly more dangerous. As of mid-November 2025, reports indicate that arch-rival Databricks is raising capital at a staggering $130 billion valuation, more than double the $62 billion valuation of their Series J round in December 2024. This creates a widening gap between Databricks' private market value and Snowflake’s smaller public market capitalisation (approx. $85 billion). This disparity signals that smart money investors may increasingly view Databricks, not Snowflake, as the premier winner in the AI data infrastructure race.

Bottom Line: A High-Stakes Battle Snowflake remains a potent investment in the cloud and AI migration, backed by solid fundamentals and a clear product roadmap. However, the widening valuation gap with Databricks introduces a new layer of risk. The stock is best suited for growth-oriented investors who believe Snowflake’s new Agentic AI tools can close the gap, while conservative investors might be wary of the intensifying "winner-takes-most" battle for enterprise data dominance.

The cloud data warehouse space is heating up, and Snowflake Inc. (NYSE: SNOW) sits right in the middle of it all. As AI transforms how businesses handle data, investors are asking: is Snowflake positioned to win, or will competitors leave it in the dust?

After digging into the company's latest financials and market position, here's what every investor needs to know about Snowflake right now.

The AI Integration Play

Snowflake just made a significant move by partnering with Anthropic to bring Claude AI models directly into their platform. This isn't just another tech partnership - it's a strategic play that lets businesses analyse both structured and unstructured data using AI while keeping everything secure within their existing systems.

For companies drowning in data but struggling to extract insights, this could be a game-changer. Instead of moving data around or compromising on security, they can deploy AI analysis right where their data lives.

Strong Financial Foundation

The numbers tell a compelling growth story. Snowflake's Q2 2026 results showed:

$1,090 million in product revenue (31% year-over-year growth)
$6.9 billion in contracted future revenue (33% year-over-year growth)
Over 11,000 customers across their platform
35% market share in cloud data warehouses

That $6.9 billion in future revenue is particularly noteworthy, it provides visibility into the company's growth trajectory and suggests customers are committing to long-term relationships with Snowflake.

The Databricks Problem

Here's where things get complicated. Databricks, Snowflake's primary competitor, recently secured funding at a $100 billion valuation. That's actually higher than Snowflake's current market capitalisation.

More concerning for Snowflake investors, Databricks is quickly moving into cloud warehousing, making things harder for Snowflake as it tries to keep up with new features and competition.

What Wall Street Thinks

Analysts remain generally optimistic about Snowflake, with an average price target of $265.88 - about 23% higher than current levels. However, the wide range of predictions (from $115 to $440) reveals significant uncertainty about the company's future.

This spread suggests even professional analysts are unsure how the competitive landscape will play out and whether Snowflake can successfully monetise its AI initiatives.

The Investment Case

Snowflake represents a bet on two major trends: the continued migration of data to the cloud and the integration of AI into business operations. The company has established a strong position in cloud data warehousing and is making strategic moves to capture AI-driven growth.

However, success isn't guaranteed. The competitive pressure from Databricks is real, and the AI market remains in its early stages. Snowflake needs to execute flawlessly while defending its market position against a well-funded rival.

Bottom Line

Snowflake offers exposure to the growing intersection of cloud computing, data analytics, and artificial intelligence. The company has solid fundamentals, growing revenue, and a clear strategy for the AI era.

The investment comes with risks: intense competition, market uncertainty, and the typical volatility associated with high-growth tech stocks. This makes Snowflake suitable for growth-oriented investors who can handle price swings and believe in the long-term potential of AI-powered data analytics.

For conservative investors or those seeking steady dividends, Snowflake probably isn't the right fit. But for those willing to ride the AI wave, it could be worth considering as part of a diversified technology portfolio.

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Disclaimer

Brogers is an employee of Simply Wall St, but has written this narrative in their capacity as an individual investor. Brogers holds no position in NYSE:SNOW. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimate's are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.