Goldman Sachs has recalibrated its outlook for Snowflake Inc. (SNOW), reducing its price target to $246 from an earlier $286. Despite this adjustment, the firm continues to endorse a Buy rating for the data warehousing giant. This move precedes Snowflake's anticipated fourth-quarter financial disclosure, with Goldman Sachs expressing confidence in the company's underlying strength and its ability to withstand pressures affecting the broader software industry.
Concurrently, RBC Capital also modified its price target for Snowflake Inc. (SNOW), setting it at $245, a decrease from its previous $300. RBC maintained an Outperform rating, highlighting a prevailing cautious investor sentiment towards software companies. The firm emphasized a preference for enterprises demonstrating clear pathways to AI-driven revenue generation and strategic consolidation across key technological domains, including cybersecurity, data management, infrastructure, and vertical SaaS solutions. These revisions by RBC reflect a broader recalibration of valuation models to account for significant multiple compressions experienced year-to-date.
A notable development for Snowflake Inc. (SNOW) was the announcement on February 2, 2026, of a significant multi-year partnership with OpenAI. This collaboration, valued at $200 million, is designed to empower businesses to extract greater insights and value from their proprietary data through advanced artificial intelligence applications. The agreement facilitates the native integration of OpenAI's sophisticated models within Snowflake's Cortex AI platform, making them accessible to its extensive global customer base of 12,600 across all major cloud environments. This partnership also includes joint market initiatives aimed at deploying AI agents within various enterprise settings, underscoring Snowflake's commitment to advancing its AI capabilities and offerings.
Snowflake Inc. (SNOW) is recognized for its robust cloud-based data platform. This platform plays a crucial role in enabling organizations to centralize their data, develop innovative applications, and leverage artificial intelligence to generate actionable business intelligence. The company's focus on providing a unified and powerful data solution positions it as a key player in the evolving landscape of cloud computing and AI-driven analytics.
While Snowflake Inc. (SNOW) presents a compelling investment opportunity, the market offers other AI-focused equities that may provide more substantial upside potential with comparatively lower downside risks. For investors exploring such alternatives, particularly those interested in undervalued AI stocks poised to benefit from current economic trends like Trump-era tariffs and the onshoring movement, specialized reports offering insights into high-potential short-term AI stocks are available.
The recent adjustments by leading financial institutions, Goldman Sachs and RBC Capital, reflect a nuanced view of Snowflake's valuation amidst a dynamic market. Despite the lowered price targets, the sustained Buy and Outperform ratings signal ongoing confidence in Snowflake's core business model and its strategic advancements in AI. The partnership with OpenAI further solidifies its position, promising enhanced data utilization and application development for its global clientele.