I want to talk about why I think the Snowflake AI story is more grounded than 90% of the other AI investment narratives floating around right now.
Here is the thing most people miss. Snowflake does not need to convince enterprises to move their data somewhere new. The data is already there. Their existing customers store their most sensitive business data inside Snowflake. What Snowflake is now doing is letting those same customers run AI models directly on that data without ever moving it anywhere.
That workflow advantage is genuinely hard to compete with. If you are a large bank or a healthcare company and your data is already in Snowflake and Snowflake now lets you run AI inference on it inside the same secure environment, why would you go through the complexity and security risk of sending that data to some external AI provider?
The Q1 FY2027 numbers support this. Revenue grew 34% and the growth came from existing customers spending more, which is a much healthier signal than just signing new logos.
They also announced a collaboration with OpenAI for enterprise AI solutions and closed a 6 billion dollar Amazon deal. These are not press release partnerships. These are revenue arrangements.
I think the Snowflake AI data cloud thesis is one of the more defensible AI investment cases out there right now and I do not say that about many stocks at a 72x forward PE.