Goldman Sachs more confident in Snowflake as long-term Gen-AI winner

Goldman Sachs keeps a Buy rating and $220 price target on Snowflake after attending the company’s Data Cloud Summit and Investor Day. The firm is now more confident that Snowflake is uniquely suited to be a long-term Gen-AI winner as its value extends beyond the infrastructure layer to the platform layer, akin to prior tech cycles as enterprises seek to unlock the value of their mission-critical data to develop Gen-AI applications, the analyst tells investors in a research note. Goldman Sachs adds that it sees Snowflake as “structurally advantaged” in enabling Gen-AI due to its extensive data moat, augmented by the growing functional use cases provided through its platform outside core warehousing, data interoperability, application development, unstructured data, data sharing, and managed AI services.