Citi Notes Snowflake's (SNOW) 30% Pull Back to Be an Overreaction

Snowflake Inc. (NYSE:SNOW) is one of theMost Promising Stocks to Invest In Before They Take Off. On February 18, Citi analyst Tyler Radke noted that the recent 30% pullback in Snowflake Inc. (NYSE:SNOW) is an overreaction to the company’s fiscal Q3 2025 results. The analyst maintained a Buy rating on the stock but lowered the price target from $300 to $270.

​The analyst noted that the recent pullback was due to a modest earnings beat, which the market combined with the sectoral challenges related to AI and valuation. Radke highlighted Snowflake’s AI-resilient consumption model. He added that recent channel checks show strong demand for Cortex AI. The demand for Cortex AI has been boosted by $200 million deals with Anthropic and OpenAI, in addition to the strong ties with Google’s Gemini.

​He noted: “The substantial $200M deal with both Anthropic and OpenAI, along with collaboration with Google Gemini, underscores customer demand for the Cortex, which is now moving towards more meaningful monetization, following the new AI disclosure of $100M.”

​Moreover, Radke added that Snowflake Intelligence is delivering 20-30% higher consumption for some financial and retail clients, and has now reached over 2,000 customers, up from 1,200 in Q3 2025. The analyst sees the company’s migrations boosting based on Citi’s latest CIO survey, which suggests an increase in financial services IT budgets.

​Snowflake Inc. (NYSE:SNOW) provides cloud data warehousing software and offers Data Cloud, an ecosystem that allows customers, data providers, partners, and data consumers to break down data silos and derive value from data. The company’s platform supports a range of use cases, including data lakes, data warehousing, data engineering, data application development, data science, and data sharing.

While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.