Snowflake's stock price fell sharply by 5.08% during intraday trading on Thursday, as the cloud-data company was caught in a widespread selloff affecting software stocks.

The decline reflects growing investor concern that rapidly advancing artificial intelligence capabilities threaten the business models of traditional software-as-a-service companies. This week's selling intensified after Anthropic launched new AI tools that push into areas like data analysis, directly competing with services offered by firms like Snowflake.

Analysts note that software stocks have been under pressure for months, with this week's movement representing a broader "structural concern about the competitive positioning and moats of information-services names under this new AI paradigm." The selloff has been particularly pronounced for companies like Snowflake that saw their valuations peak during the pandemic-era cloud computing boom.