February 10, 2026
Finance

Snowflake Stock Gains Momentum Amid Strategic AI Partnership and Product Innovations

Shares rise following $200 million deal with OpenAI and launch of new AI-focused enterprise tools

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Summary

Snowflake Inc's stock showed strength in early trading on Tuesday after a significant multi-year investment and collaboration deal with OpenAI was announced. The partnership aims to integrate advanced AI capabilities directly into Snowflake’s platform, enabling customized AI solutions for enterprise users. Additionally, Snowflake revealed several new AI-driven product enhancements designed to accelerate the shift from AI experimentation to production. Despite short-term technical headwinds, investor sentiment remains generally positive as the company prepares for its forthcoming earnings report.

Key Points

Snowflake announced a $200 million multi-year partnership with OpenAI to integrate GPT-5.2 and other models natively for its global customers via Snowflake Cortex AI on all major cloud platforms.
New product releases include Snowflake Postgres, unifying operational, analytical, and AI data management, alongside Cortex Code, an AI-driven coding agent to streamline data pipeline and AI app development.
While the company’s stock has gained recently and benefits from a positive tech market environment, it remains 7.2% below its 20-day SMA and nearer to its 52-week low, reflecting short-term technical challenges.
Analysts maintain a Buy consensus with an average price target of $276.82, even as the forthcoming earnings report projects a narrowed EPS and growing revenues.
Snowflake Inc, listed on the NYSE under the ticker SNOW, experienced notable gains in premarket trading Tuesday, continuing the upward trajectory initiated Monday when shares climbed by 4.46%. This renewed investor interest comes amid strategic developments in Snowflake’s AI capabilities and broader market dynamics favoring technology equities.

On February 2nd, Snowflake solidified a landmark agreement with OpenAI encompassing a multi-year, $200 million partnership. This collaboration is focused on co-innovation and synchronized go-to-market initiatives, aimed at embedding OpenAI’s models—such as GPT-5.2—natively within Snowflake’s platform ecosystem. Snowflake's client base, numbering approximately 12,600 organizations across the globe, will gain access to these models via Snowflake Cortex AI, integrated seamlessly across all prominent cloud infrastructure providers.

The partnership’s objectives highlight facilitating the development and deployment of tailored AI applications and enterprise AI agents that leverage both companies’ technological strengths. This initiative positions Snowflake to capitalize on the rising demand for AI-infused enterprise data management solutions.

Complementary to the partnership announcement, Snowflake introduced a suite of product upgrades on February 3rd, designed to advance enterprises from merely piloting AI projects to fully operational deployments. A standout feature of this release is Snowflake Postgres, a unified platform combining operational, analytical, and AI data management workflows. Alongside this, Cortex Code was launched—an AI-powered coding assistant engineered to automate and expedite the construction of data pipelines and AI applications.

Market factors also play a role in Snowflake’s share price momentum, with Nasdaq futures up by 0.32% and S&P 500 futures increasing by 0.22% in premarket sessions, reflecting a generally supportive atmosphere for technology sector equities.

From a technical standpoint, Snowflake’s stock is encountering some short-term resistance. Current prices sit 7.2% below the 20-day simple moving average (SMA) and 20.9% below the 100-day SMA, indicators often interpreted as bearish in the short term. Over the past year, the stock has declined by approximately 5.46% and is trading nearer to its 52-week low compared to its high, indicating persistent challenges.

Technical indicators present a nuanced picture. The Relative Strength Index (RSI) stands at 36.19, suggesting the stock is neither overbought nor oversold and is in neutral territory. However, the Moving Average Convergence Divergence (MACD) indicator remains below its signal line, signaling ongoing bearish pressure. This combination points to mixed momentum and the possibility of further downward movement if current trends persist.

Key levels of price support and resistance have been identified at $160.50 and $215.00 respectively, providing thresholds that market participants will watch closely in the near term.

Turning to earnings, investors are setting their sights on the upcoming report scheduled for February 25, 2026. Analyst forecasts indicate an expected loss per share (EPS) of 10 cents, which marks a decline from an EPS of 30 cents the prior year. Conversely, revenue estimates suggest growth, with projections of $1.25 billion compared to $986.77 million a year ago.

Analyst sentiment remains relatively optimistic despite these mixed indicators. The consensus rating stands at Buy with an average price target of $276.82. Recent analyst activities include DA Davidson reaffirming a Buy rating and a $300 target on January 30, Morgan Stanley maintaining an Overweight stance with a nearly $299 price goal on January 27, and Barclays lowering its rating to Equal-Weight with a reduced target of $250 as of January 12.

During Tuesday’s premarket trading, Snowflake’s shares were observed trading 3.95% higher at $182.90, reflecting cautious optimism. As the company advances its AI initiatives and prepares for the upcoming earnings announcement, momentum factors and technical indicators will remain key considerations for investors pacing market entry or exit strategies.
Risks
  • Technical indicators such as the stock trading below key moving averages and the MACD below its signal line suggest bearish momentum that may continue in the near term.
  • The forecasted EPS loss for the upcoming earnings period represents a decline from the previous year, potentially impacting investor confidence.
  • The stock is closer to its 52-week low than its high, indicative of underlying weakness and heightened volatility risk.
  • Market conditions and competitive pressures within the AI and cloud data platform space could influence Snowflake’s ability to meet revenue growth expectations.
Disclosure
Education only / not financial advice
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