Snowflake Inc. (NYSE:SNOW) CEO Sridhar Ramaswamy pushed back against the growing narrative that artificial intelligence models are beginning to plateau, calling such predictions premature and something that has ended up not being true several times in the past.
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Still ‘Very, Very Early Innings’
During the company’s second-quarter earnings call on Wednesday, Ramaswamy said, “Every prediction that we have made about various kinds of plateauing has not really turned out to be true some six odd months later,” while citing “remarkable transformation” in model capabilities, particularly in code generation and agentic workflows, in recent months.
According to Ramaswamy, enterprise use cases, unlike consumer-facing applications, are still unfolding. “These kinds of experiences become useful only when the data that matters to the enterprise” actually becomes available to the models.
See Also: Snowflake Stock Is Moving Higher After Hours: Here’s Why
“Think of all the work that happens in an enterprise,” Ramaswamy said. “Whether it is insurance claims processing, or regulatory reporting, or anomaly detection,” he says, adding that across all these areas, the application of data and AI “is very much in its infancy.”
Looking ahead, he sees a long runway for value creation. “There is honestly years of work ahead in terms of the value that we can get from AI,” he said. “It's still very, very early innings.”
Stock Rallies On Beat-And-Raise Quarter
Snowflake released its second-quarter results on Wednesday, reporting $1.14 billion in revenue, up 32% year-over-year, and beating consensus estimates of $1.09 billion. The company posted a profit of $0.35 per share, ahead of estimates at $0.27.
Additionally, it raised its guidance for the full-year, now expecting $4.395 billion in revenue, representing a year-over-year increase of 27%, and up from its prior guidance of $4.33 billion.
Shares of Snowflake were up 3.11% on Wednesday, closing at $200.39, and are up another 14.24% in pre-market trade, following its earnings announcement. The stock is ranked high on Momentum in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock.
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