Snowflake AI Demand Seen Driving Faster Growth, UBS Says

02:42 PM EDT, 09/03/2026 (MT Newswires) -- Snowflake (SNOW) could see faster revenue growth as business use of AI increases demand for its data products, while strong usage, backlog trends and wider AI adoption could push growth above current expectations, UBS said in a note Wednesday. Snowflake's Q3 guidance points to product revenue growth of about 43% if the company delivers a typical beat, which would mark another acceleration from recent quarters; however, Snowflake's guidance may still be cautious, as stronger use of newer AI products has made revenue harder to predict, UBS said. AI usage, rather than large customer renewals, appears to be the main driver of stronger demand and could help Snowflake exit Q4 with product revenue growth above 42%, according to the note. Snowflake also shows that AI spending is expanding beyond chips and hardware into cloud infrastructure and data software as more companies build AI into their operations, the investment firm said. UBS maintained its buy rating for Snowflake and raised its price target to $500 from $425. Price: 365.88, Change: +60.04, Percent Change: +19.63