Is Snowflake Inc. (SNOW) A Good Stock To Buy Now?

Is SNOW a good stock to buy? We came across a bullish thesis on Snowflake Inc. on Atlas.ML’s Substack. In this article, we will summarize the bulls’ thesis on SNOW. Snowflake Inc.'s share was trading at $175.26 as of May 27 th . SNOW’s forward P/E was 99.01 according to Yahoo Finance. Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. SNOW surged approximately 37% in after-market trading following a strong Q1 FY2027 earnings report that reinforced its positioning at the center of the emerging Agentic AI-driven data economy. Read More: 15 AI Stocks That Are Quietly Making Investors Rich Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential The company delivered broad-based beats across key financial metrics, with adjusted EPS of $0.39 versus $0.32 expected and revenue of $1.39 billion versus $1.32 billion expected, driven by accelerating product revenue growth of 34% year-over-year to $1.33 billion and a robust net revenue retention rate of 126%, underscoring expanding enterprise wallet share. Remaining performance obligations rose 37.7% year-over-year to $9.21 billion, providing strong forward revenue visibility, while management raised FY2027 product revenue guidance to $5.84 billion and lifted non-GAAP operating margin guidance to 13.5%, signaling improving operating leverage alongside sustained demand strength. A major strategic catalyst was the $6 billion, five-year AWS infrastructure agreement, which positions Snowflake as a foundational layer for enterprise AI workloads and reflects a significant step-up versus prior cycles of $1.2 billion and $2.5 billion commitments, reinforcing the scale of the current AI adoption phase. The company is increasingly benefiting from structural tailwinds as over 13,600 accounts adopt Snowflake AI capabilities, supported by rising high-value customer growth, including a 29% increase in customers spending over $1 million annually. Despite GAAP losses remaining due to stock-based compensation and historical costs, operating margins showed meaningful improvement, with non-GAAP operating margin expanding to 12% and net margin rising to 10.6%. The investment thesis is further strengthened by the shift toward Agentic AI, where autonomous systems dramatically increase query intensity and data consumption, structurally expanding Snowflake’s usage-based revenue model. With the stock still significantly below its 2021 peak and now re-rating on accelerating AI-driven demand, Snowflake presents a high-upside compounding opportunity, with management signaling 31% full-year product revenue growth and a 13.5% margin trajectory that supports continued multiple expansion. Previously, we covered a bullish thesis on Snowflake Inc. (SNOW) by Oliver | MMMT Wealth in April 2025, which highlighted strong net revenue retention of 126%, scalable SaaS economics, and a cash-rich balance sheet with no long-term debt supporting long-term compounding. SNOW’s stock price has appreciated by approximately 24.98% since our coverage. Atlas.ML’s Substack shares a similar view but emphasizes Q1 FY2027 earnings acceleration, Agentic AI-driven demand inflection, and the $6 billion AWS deal as key re-rating catalysts. Snowflake Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds . As per our database, 80 hedge fund portfolios held SNOW at the end of the first quarter which was 90 in the previous quarter. While we acknowledge the risk and potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW and that has 10,000% upside potential, check out our report about this cheapest AI stock .