Shares of Snowflake have slipped from their November highs after a choppy stretch of trading tied to margin worries, even as customers keep buying more cloud data and AI services. The story right now is less about Snowflake’s growth slowing down and more about the market debating whether heavy AI-era investment will impact near-term profitability.
Against that backdrop, we ran Snowflake through an AI price-prediction agent powered by OpenAI’s GPT. The goal wasn’t to dream up a sensational multi-year target, it was to produce a short, data-driven outlook that captures where price, momentum and the headlines together point.
What the AI model is actually predicting
The agent was fed recent price action and a focused set of inputs to produce a short-term outlook. At the time of the run Snowflake traded at $215.39. For the period from Dec. 11 through Dec. 31 the model’s base-case projection came out to:
- Average predicted price: $215.75
- Implied move: Essentially neutral, the model sees limited upside over the next month, given current volatility and mixed signals
- Signal snapshot: MACD and RSI both show a steady trend
The AI is saying the most likely path over the next couple of weeks is sideways to slightly up from current levels, not a dramatic re-rate and not a capitulation either. That reflects a market trying to reconcile continued enterprise adoption of Snowflake with management’s decision to lean into AI investment.
Snowflake’s top line still looks strong. In the company’s most recent quarter, revenue was roughly $1.21 billion, a year-over-year increase that beat Street estimates and underscored continued demand for the data cloud.
But the same quarterly release highlighted a tension investors dislike. Management guided to margin compression in the next quarter as Snowflake ramps AI investments and other product initiatives. That messaging triggered a sharp one-day pullback, a reminder that growth without near-term margin visibility can spook the market.
At the same time, Snowflake is deepening commercial ties that underpin its long-term narrative. The company recently announced expanded partnerships, including a multi-year pact with Anthropic to bring Claude models into Snowflake’s Cortex/Intelligence stack aimed at making agentic/generative AI available inside customer clouds without moving sensitive data. Those products and go-to-market moves help explain why many customers keep expanding usage even as Wall Street frets about near-term spending.
Price action in December has been bouncy. A volatile few weeks with sharp swings from the November highs into a December pullback, which is exactly the kind of short-term noise the agent tries to smooth into an average path. Recent daily closes show larger intraday ranges and elevated volume around earnings and the margin commentary, signaling investor repositioning rather than a wholesale loss of conviction.
Think of the AI outlook as a short-term temperature check.
The model isn’t issuing a long-term verdict on Snowflake’s AI opportunity, it’s estimating how quickly the market will reward or punish near-term margin dynamics and product headlines. In this run, the agent favors a muted move. The market may need another clear earnings/guide beat or a steadying of margin commentary before traders give the stock a sustained lift.
For longer-term investors who believe Snowflake’s product expansion will continue to drive adoption, this model’s neutrality is neither surprising nor definitive.
For traders, it’s a reminder that the next big move will likely be driven by another catalyst. Either evidence that AI investments are already monetizing, or clearer signs that spending will meaningfully dent margins.
