New York, February 4, 2026, 13:08 (EST) — Regular session
Shares of Snowflake Inc (SNOW.N) dropped roughly 7.5% to $160.24 by early afternoon Wednesday, hitting an intraday low of $159.80. The stock had started the day at $170.51.
The decline hits software and cloud stocks as investors worry that rapid advancements in AI might disrupt long-standing business models and pricing strategies. “If you’ve got legacy software that’s old and clunky, you’re a ripe target for AI,” said Josh Chastant, a portfolio manager at GuideStone Funds. Reuters
Snowflake’s position is crucial in the AI spending debate: it offers a cloud platform for data storage and analysis, with AI tools increasingly integrated. But when investors pull back on the broader software sector, even those providing the essential infrastructure for AI often take a hit.
This week, Snowflake rolled out Cortex Code, an AI coding agent that writes and edits code based on plain-language prompts, plus a command-line tool for developers. The company also flagged upcoming integrations with Vercel’s v0 and Brave Search to support teams building and testing AI apps directly in Snowflake.
Snowflake also announced progress on Snowflake Postgres and introduced Semantic View Autopilot, a feature designed to automate “semantic views.” These views standardize business terms and metrics, ensuring systems deliver consistent results. Christian Kleinerman, Snowflake’s EVP of product, emphasized the goal of cutting down “data silos” and “fragile pipelines” that hinder AI rollout and increase risk. Business Wire
Snowflake and OpenAI revealed a multi-year deal worth $200 million, integrating OpenAI models into Snowflake’s Cortex AI and Snowflake Intelligence products. This move is designed to help users query company data without needing to write code. Snowflake CEO Sridhar Ramaswamy described enterprise data as a customer’s “most valuable asset.” Meanwhile, OpenAI Applications CEO Fidji Simo praised Snowflake as “a trusted platform” central to enterprise data use. OpenAI
The company is moving into a packed field. Competitor Databricks has been expanding its AI offerings and just secured $4 billion in funding, valuing it at $134 billion, to support its “Agent Bricks” framework, Reuters reported. Reuters
But the tape turned harsh whenever growth concerns surfaced. In December, Snowflake shares dropped after the company predicted slower product revenue growth for the next quarter, blaming discounts related to big, long-term contracts.
Snowflake’s fiscal 2026 fourth-quarter and full-year results are expected after U.S. markets close on Feb. 25. The company will hold a conference call at 3 p.m. Mountain Time. CEO Ramaswamy and CFO Brian Robins will also appear at Morgan Stanley’s Technology, Media & Telecom conference on March 3.
