11:26 AM EDT, 08/20/2025 (MT Newswires) -- Snowflake's (SNOW) data warehouse, Cortex AI and Snowpark developer businesses are showing momentum as multiple proprietary data sources highlight improving demand trends, BofA Securities said in a note Wednesday.

Customers view the company as a "critical piece" of the artificial intelligence tech stack, the firm said, adding that growth in Snowpark and Cortex AI is particularly "strong" as customers invest in core data services to support AI.

BofA's survey among Snowflake customers showed that customers are expected to increase spending by 12% over the next 12 months, driven by expansion of AI workloads, increase in new AI workloads, and adoption of new products.

"Over 50% of respondents currently utilize Snowflake for AI workloads highlighting Snowflake's transition to a data and AI platform," according to the note.

BofA upgraded its rating on the stock to buy from neutral, and raised its price target to $240 from $220.

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