Snowflake stock SNOW rose 6% on Friday after the company introduced Agentic Marketplace Discovery in public preview, expanding its tools for AI-driven workflows as software stocks continued to rebound.
The feature allows users to find and compare relevant listings on Snowflake’s Marketplace by querying the company’s AI tool, CoCo.
It is available directly through the Marketplace Discover page in Snowsight, according to Snowflake’s official release notes.
The launch comes as investors assess whether growing demand for artificial intelligence will support software companies’ revenue growth and offset concerns that AI could disrupt traditional application software businesses.
Snowflake expands AI marketplace capabilities
Snowflake provides data infrastructure that businesses use to store, process, analyse and share information.
The company says AI is bringing new workloads onto its platform as enterprises seek governed data and business context to make AI applications useful.
The latest marketplace feature adds to Snowflake’s efforts to support AI-related workflows by helping users identify and compare listings through natural-language queries to CoCo.
The company’s recent financial results also point to stronger growth.
Snowflake generated $1.49 billion in product revenue in the second quarter of fiscal 2027, an increase of 37% from the same period a year earlier.
Product revenue growth has accelerated for three consecutive quarters.
Management attributed the increase to contributions from the core data platform and a meaningful step-up in AI revenue.
JPMorgan sees further upside for software stocks
JPMorgan expects the recent recovery in software stocks to continue as third-quarter earnings provide more evidence of AI-related demand for infrastructure software and help ease concerns about disruption to application software.
The bank favours Microsoft (MSFT), ServiceNow (NOW), Snowflake and Cloudflare (NET) heading into earnings season.
JPMorgan analyst Samik Chatterjee said application software shares could benefit from higher valuation multiples if company fundamentals prove more resilient than investors currently expect.
“We expect the broader recovery in the software sector index to continue, with upsides to Application Software company share prices more likely to be driven by re-rating of valuation multiples as fundamentals prove to be more resilient than priced in by low investor expectations on account of AI disruption threats,” Chatterjee said.
For infrastructure software companies, the analyst expects share-price gains to be supported by upward revisions to earnings estimates as AI demand contributes to revenue growth, despite already elevated valuations.
JPMorgan expects Snowflake to benefit from faster customer migrations and rising AI-related revenue.
The bank also expects Cloudflare’s revenue growth to accelerate into the high-30% range, supported by demand for security and network performance from AI-focused companies.
Analysts highlight Snowflake’s AI growth prospects
Snowflake has also received a more positive assessment from Citi (C). In September, analyst Tyler Radke raised his price target to $490 from $395 while maintaining a Buy rating.
Radke said Snowflake’s second-quarter fiscal 2027 results supported the “AI-driven flywheel thesis.”
Its latest marketplace launch adds another feature aimed at helping customers discover and use data-related offerings.
Meanwhile, its accelerating product revenue growth provides evidence of stronger demand for its platform.
Investors will be watching upcoming earnings for further indications of whether AI-related workloads can sustain growth across the software sector.
For Snowflake, the key factors highlighted by analysts include customer migrations, AI revenue, and continued demand for its core data platform.
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