Snowflake Rides on AI Momentum: Can It Stay Ahead of DELL and Oracle?

Snowflake SNOW is benefiting from the accelerating momentum of artificial intelligence (AI), positioning itself at the forefront of enterprise data and AI transformation. In the first quarter of fiscal 2027, product revenues rose 34% year over year due to rapid adoption of its AI-driven products, Snowflake Intelligence and Cortex Code (CoCo). These tools enable both business users and developers to interact with data and build applications using natural language, driving faster decision-making and automation.

The company’s deep integration of AI into its core platform has become a key differentiator relative to legacy competitors such as Dell Technologies DELL and Oracle ORCL. While Dell Technologies and Oracle have robust hardware and database offerings, Snowflake’s cloud-native architecture and focus on governed, unified data make it easier for enterprises to migrate workloads and scale AI initiatives securely. Major customers such as Holiday Inn Club Vacations and Houzz have chosen Snowflake for its simplicity, built-in AI capabilities and strong governance, enabling them to modernize analytics and operations more rapidly than traditional platforms allow.

Further strengthening this AI strategy, Snowflake recently announced dynamic model routing across Cortex AI Gateway and its flagship AI products, enabling enterprises to balance AI quality and costs by automatically selecting the most suitable model for each task. The company also expanded access to leading open models, strengthening its AI capabilities and helping customers improve the efficiency of their intelligence. 

Snowflake’s growing customer base, combined with its rapid product innovation, positions the company for continued upside. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.42 billion, implying 30% year-over-year growth. The company raised its fiscal 2027 product revenue growth outlook to 31%, highlighting increased confidence in AI-driven consumption.

How Competitors Fare Against SNOW

Snowflake is facing stiff competition from major players like Dell Technologies and Oracle. Both these companies are expanding their footprint in the AI space.

Dell Technologies is benefiting from surging demand for AI infrastructure. In the first quarter of fiscal 2027, Dell Technologies reported record revenues of $43.8 billion, up 88% year over year, with AI server revenues reaching $16.1 billion and a record AI backlog of $51.3 billion. This robust performance is driven by customers across neocloud, sovereign and enterprise segments seeking to secure supply and modernize their IT environments.

Oracle’s expanding portfolio has been noteworthy. In June 2026, Oracle introduced Oracle OPERA Cloud Assistant, a suite of AI-powered capabilities built into OPERA Cloud that automates guest room assignments, generates AI-driven rate descriptions, supports multilingual operations across 230 countries and territories and gives hotel staff real-time operational guidance.

SNOW’s Share Price Performance, Valuation, and Estimates

Snowflake shares have gained 47.8% year to date, outperforming the broader Zacks Computer & Technology sector’s 16.4% increase. The Internet Software industry has declined 5.5% in the same time frame.

SNOW Stock Performance

Image Source: Zacks Investment Research

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 16.33X compared with the Internet Software industry’s 3.88X. SNOW has a Value Score of F.

SNOW's Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.97 per share, which has increased by a penny over the past 30 days. The figure indicates a 57.60% year-over-year increase. 

Snowflake Inc. Price and Consensus

Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote

Snowflake currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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