Snowflake Inc. (NYSE:SNOW) shares rise 5% after Wells Fargo (NYSE:WFC) increases price target to $500

NEW YORK, July 29, 2026, 4:03 p.m. EDT

Snowflake climbed 4.9% to $283.73 in a late session quote released with a delay.
Wells Fargo increased its price target to $500 from $320 and maintained its Overweight rating.
The goal is positioned only 5.8% under the $531 benchmark for the CEO award.

Snowflake Inc. NYSE:SNOW rose 4.9% to close at $283.73 on Wednesday. Shares hit an intraday peak of $293.57. Trading had just concluded and the most recent dedicated quote was still delayed. These closing numbers are provisional.

Wells Fargo & Co. NYSE:WFC lifted its price target to $500 from $320. Analyst Ryan MacWilliams maintained an Overweight rating, citing increased platform spending and data uploads driven by AI agents. “The game has changed,” MacWilliams wrote. Benzinga

The target represents another milestone. It is just 5.8% short of the $531 per share threshold set in Chief Executive Sridhar Ramaswamy’s latest compensation package. Snowflake needs to achieve this stock price by July 15, 2033.

With the share count remaining the same, $500 equals an equity value of roughly $172.5 billion. This figure sits 6.3% under the award’s market-value threshold of $184 billion. The calculations are initial estimates.

Snowflake valuation reference	Level	Read-through from $283.73
Late session price, delayed	$283.73	Shares rose 4.9% on Wednesday
Wells Fargo price objective	$500.00	Reflects 76.2% expected gain
CEO’s final award threshold	$531.00	Marks 87.1% upside potential
Equity value based on target	$172.5 billion	This is 6.3% below the $184 billion threshold

Initial estimate based on unchanged share count.

The rally outpaced the overall software sector. The iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) gained roughly 0.6%, while the Invesco QQQ Trust NASDAQ:QQQ slipped 1.6%. Snowflake exceeded their performance by 4.4 and 6.6 percentage points, respectively.

MacWilliams identified Snowflake as a short-term AI winner that does not require major capital outlays. This view contrasts with AI infrastructure investments, which typically need significant funding ahead of revenue. Snowflake’s billing is based on customer platform use.

Tuesday marked the launch of Cortex AI Gateway, after which the upgrade was announced. According to Snowflake, the new product manages internal as well as third-party AI agents. It is compatible with over 100 Model Context Protocol servers. The gateway logs all activities and monitors token expenses.

“Security has to be at the center of that shift,” said Snowflake security chief Mayank Upadhyay. The gateway will soon enter public preview, but general availability has not been announced. Snowflake

Snowflake reported accelerated usage ahead of its product release. Product revenue for the first quarter climbed 34% to $1.33 billion. Remaining performance obligations were up 38% at $9.21 billion. Net revenue retention was 126%.

Over 13,600 accounts accessed Snowflake’s AI tools, while Cortex Code was adopted by more than 7,100 accounts. However, Snowflake’s release did not provide a distinct figure for revenue derived from AI. Increased usage still needs to translate to billable consumption.

Management projected second-quarter product revenue in the range of $1.415 billion to $1.420 billion, indicating growth of around 30%. The outlook for the full year is still $5.84 billion, a 31% increase.

Based on Wells Fargo’s target, the initial equity-value-to-guided-product-revenue ratio is about 29.5 times. This figure does not represent an enterprise-value multiple, but it indicates the extent of anticipated future AI monetisation built into the target.

Risks: Cortex AI Gateway is still in pre-release, and AI revenue figures are not separately disclosed. Snowflake operates with a consumption-based model, allowing customers flexibility in when and how much they use. If consumption growth slows, the $500 valuation may run ahead of the actual results reported.

The upcoming test is simple: a higher number of AI accounts should lead to sustained, accelerated consumption growth.

TS2 TECH • EXTENDED COVERAGE

Further analysis

Editorial insight

What is driving Snowflake shares higher today?

SNOW was trading at $284.42 as of 3:49 p.m. Eastern on July 29, up 5.2% from its previous session’s close. The stock reached an intraday high of $293.57. Wells Fargo’s decision to raise its price target to $500 from $320, while maintaining its Overweight rating, acted as a key driver. The analyst suggested that AI agents could boost usage of the Snowflake platform. The specific trigger for intraday price swings often remains unclear to the public. MarketWatch

What is a realistic twelve-month price projection for SNOW?

Analysts currently have an average target of $304.73, with the median at $300. Price targets range widely from $110 to $500. My base scenario for the next twelve months is between $300 and $330, suggesting a potential gain of 5%–16%. The bullish scenario predicts $400 if product growth remains above 30%. The bearish scenario sees $220 if growth drops below 25%. These figures are estimates and not guaranteed results. The Wall Street Journal

Is Snowflake experiencing a true resurgence in its revenue growth?

Snowflake reported fiscal first-quarter 2027 product revenue grew 34% to $1.334 billion, while total revenue climbed 33% to $1.391 billion. The company lifted its full-year product revenue outlook to $5.84 billion, signaling 31% growth compared with the previous 27% guidance. For the second quarter, the company projects revenue between $1.415 billion and $1.420 billion, reflecting a 30% increase. While this marks a real pickup in growth, a single quarter is not sufficient to establish a sustained trend. SEC

Is the implementation of AI delivering quantifiable benefits to businesses?

Over 13,600 accounts engaged with Snowflake AI features each week as the quarter drew to a close. Cortex Code operated in more than 7,100 customer accounts. The number of Snowflake Intelligence accounts rose more than twofold compared to the previous quarter. On July 28, Snowflake launched the Cortex AI Gateway to support agent governance. Public preview availability of the gateway is still planned; general access is not yet scheduled. Evidence of AI adoption exists, but direct monetization has yet to be measured. SEC

Is growth in customer expansion and contracted demand continuing at a strong pace?

Net revenue retention stood at 126% in the first fiscal quarter. Snowflake reported 779 customers each spending more than $1 million in the trailing year, marking a 29% increase from the prior year. The company gained 616 net new customers, representing a rise of 38% from the year-ago period. Remaining performance obligations rose 38% to $9.21 billion. While the results remain robust, the conversion of backlog continues to be subject to consumption rates. SEC

Is profit growth sufficient to justify the current valuation?

Non-GAAP operating margin increased to 11.9%, up from about 9% in the prior year. The company lifted its fiscal 2027 non-GAAP operating margin outlook to 13.5%. Adjusted free cash flow totaled $265.5 million, representing a 19.1% margin. In contrast, GAAP operating margin stood at negative 23.4%. The GAAP net loss for the quarter amounted to $295.6 million. Stock-based compensation totaled $402.5 million, or 29% of revenue. While progress is evident, there remains a significant difference in accounting results. SEC

What is Snowflake’s valuation based on its current share price?

Snowflake is valued at $98.1 billion, which is 16.8 times its projected product revenue. As of April 30, the company had around $4.4 billion in cash and investments. Convertible debt stood at $2.28 billion, resulting in net cash of approximately $2.1 billion. The implied enterprise value is $95.9 billion, or 16.4 times product revenue guidance. The consensus estimate for fiscal 2027 earnings per share is $1.93. Based on the current share price, this reflects a multiple of about 147 times that projection. This high valuation leaves little room for any operational missteps. SEC

Will the $6 billion AWS deal offer support or deepen reliance?

Snowflake committed to $6 billion in spending with AWS over a five-year period. The partnership includes Graviton chips, AI infrastructure, and expanded product integration. Marketplace sales and workload migrations are also part of the scope. According to Snowflake, a large share of its operations currently run on AWS. AWS, Azure, and Google Cloud remain both suppliers and rivals in the sector. While the agreement could deliver efficiency gains, it further increases Snowflake’s reliance on AWS. Reuters

Is the CEO’s pay structure in step with shareholder interests?

Snowflake announced a performance-based equity grant of one million shares for CEO Sridhar Ramaswamy, with Reuters estimating the award’s maximum value near $448 million. The final portion of the grant will only vest if the stock price reaches $531 by July 15, 2033, a level about 87% over Snowflake’s most recent intraday trading value. The award consists of five installments and stipulates ongoing employment through September 2030. While the plan ties compensation to share price gains, possible dilution remains a concern. Reuters

What does Snowflake need to achieve in its upcoming earnings report?

Provisional market calendars indicate fiscal second-quarter results are expected on August 26. Management has forecast product revenue between $1.415 billion and $1.420 billion, representing a 30% increase. The consensus for adjusted EPS is at $0.45 per share. Metrics such as retention, backlog conversion, and AI usage will provide insight into demand strength. The non-GAAP full-year product gross margin is still targeted at 75%. Growth falling short of 30% could put pressure on the current valuation. A strong outperformance may support the $300 to $330 base scenario. The Wall Street Journal

Roman Perkowski Latest posts

Roman Perkowski is a senior markets reporter at TS2.tech, specializing in stocks, technology and macroeconomic trends. A graduate of the Cracow University of Economics, he previously worked in investment research and corporate finance. His coverage helps readers understand the key forces driving global financial markets and emerging industries. Follow Roman Perkowski on Google News.