Snowflake (SNOW) traded higher Friday, with the move largely attributed to a renewed wave of bullish sell-side commentary circulating this week, including price-target increases that emphasized improving execution and demand tied to AI workloads. A widely shared recent note highlighted Snowflake’s willingness to lift its fiscal product-revenue outlook after beats while many software peers have avoided raising full-year guidance amid a cautious macro backdrop.

After a volatile stretch for high-multiple software, incremental changes in guidance posture and demand signals have outsized impact on positioning. When analysts frame Snowflake as an exception—raising outlook and pointing to consumption tailwinds—momentum-oriented buyers often step in, particularly when the stock has been pressured and sentiment is fragile.

Investors will focus on whether Snowflake can sustain product-revenue durability and translate AI usage into broader consumption, not just feature adoption. The next major catalyst is the company’s next earnings report and forward guidance update, which can confirm whether the optimism behind the price-target hikes is being validated in reported trends.