Snowflake Inc. (NYSE: SNOW) has become one of the market’s more closely watched growth stories. After a strong rebound, the stock now trades near $224/share, almost double last year’s lows. Rising demand for data infrastructure, growing AI adoption, and expanding enterprise usage have fueled the rally. But with profitability still elusive and the valuation looking expensive, analysts appear divided on what comes next.
Recently, Snowflake reported revenue growth of more than 30% year-over-year, beating Wall Street estimates and showing the strength of its consumption-based model. The company also announced a new compute engine designed to speed up analytics performance, a move that highlights its push to stay ahead in the data and AI infrastructure race. These updates have put Snowflake back in focus for investors weighing whether the momentum can continue.
This article explores where Wall Street analysts think Snowflake could trade by 2028. We have pulled together consensus targets, growth forecasts, and valuation models to outline the stock’s possible trajectory. These figures reflect current analyst expectations and are not TIKR’s own predictions.
Unlock our Free Report: 5 AI compounders that analysts believe are undervalued and could deliver years of outperformance with accelerating AI adoption (Sign up for TIKR, it’s free) >>>
Analyst Price Targets Suggest Modest Upside
Snowflake trades at about $224/share today. The average analyst price target is $264/share, which points to around 18% upside. Forecasts show a wide spread and reflect divided sentiment:
- High estimate: ~$440/share
- Low estimate: ~$170/share
- Median target: ~$270/share
- Ratings: mostly Buys, some Holds, and a few Sells
It looks like analysts see some room for gains, but the broad range of targets suggests conviction is weak. The takeaway is that expectations are already high, and Snowflake may need to deliver stronger-than-expected results to move meaningfully above current levels.
For investors, this means potential upside exists, but it may come with considerable volatility. Price targets show optimism, yet they also highlight the uncertainty around whether Snowflake can meet or exceed Wall Street’s lofty growth assumptions.
See analysts’ growth forecasts and price targets for Snowflake (It’s free!) >>>
Snowflake: Growth Outlook and Valuation
The company’s forecast shows both growth potential and high expectations:
- Revenue growth is projected at 24.9% annually through 2028
- Operating margins are expected to improve to 12.7%
- Shares trade at a much lower forward P/E multiple of 115x
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests a target of $308/share by 2028
- That implies a 36% total return over the next 2.3 years, or about 14% annualized
For investors, this forecast highlights the upside if Snowflake can keep scaling revenue and move toward profitability. But the high multiple means there is very little margin for error, and results could be volatile if execution falls short.
Value stocks like Snowflake in as little as 60 seconds with TIKR (It’s free) >>>
What’s Driving the Optimism?
Snowflake has continued to grow even as the broader software market has slowed. Enterprises are expanding usage of its data platform, which allows them to unify and analyze workloads across multiple clouds. This makes Snowflake a key player as AI adoption accelerates, since large-scale data management is critical for training and deploying models.
Another source of optimism comes from customer stickiness. Usage-based pricing has encouraged enterprises to scale up spending over time, while recurring revenue provides visibility. Combined with a strong gross margin profile and minimal debt, these dynamics help explain why many investors believe Snowflake can maintain its premium status.
These factors give confidence that Snowflake can keep expanding into profitability over time and justify its valuation premium, even in a competitive market. For investors, this suggests Snowflake could maintain a leadership role in data infrastructure, though much will depend on execution.
Bear Case: Profitability and Competition
Despite the positives, Snowflake’s valuation looks demanding compared to most peers. At ~168x forward earnings, the stock is already priced for strong growth. If revenue slows or profitability takes longer to materialize, the stock could see pressure.
Competition is another risk. Amazon, Microsoft, and Google are investing heavily in their own cloud data platforms. If they capture market share or undercut pricing, Snowflake’s growth could be challenged.
The bear case is that Snowflake’s valuation assumes near-perfect execution. If margin expansion lags or customer growth cools, the stock may face a sharp re-rating. For investors, this means downside risk is significant if expectations are not met, making it a stock that requires conviction and tolerance for setbacks.
Outlook for 2028: What Could Snowflake Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests Snowflake could trade near $308/share by 2028. That would represent about a 36% gain from today’s level, or roughly 14% annualized returns.
While this would mark strong performance, the scenario already reflects a fair amount of optimism. To deliver more upside, Snowflake may need to accelerate profitability, benefit from faster AI-driven adoption, or expand its customer base beyond expectations. Without that, gains could be solid but volatile.
Snowflake looks like a long-term growth story, but the path to outsized returns likely depends on the company beating today’s already high expectations. Investors may see value in holding for the long run, but short-term swings could test patience.
AI Compounders With Massive Upside That Wall Street Is Overlooking
Everyone wants to cash in on AI. But while the crowd chases the obvious names benefiting from AI like NVIDIA, AMD, or Taiwan Semiconductor, the real opportunity may lie on the AI application layer where a handful of compounders are quietly embedding AI into products people already use every day.
TIKR just released a new free report on 5 undervalued compounders that analysts believe could deliver years of outperformance as AI adoption accelerates.
Inside the report, you’ll find:
- Businesses already turning AI into revenue and earnings growth
- Stocks trading below fair value despite strong analyst forecasts
- Unique picks most investors haven’t even considered
If you want to catch the next wave of AI winners, this report is a must-read.
Click here to sign up for TIKR and get your free copy of TIKR’s 5 AI Compounders report today.
