Snowflake (SNOW) is seeing broad-based demand across customers, workloads and geographies, with accelerating product revenue growth, AI adoption and data migration activity reinforcing confidence in its platform strategy and supporting further upside, Oppenheimer said.

The brokerage said in a note Wednesday that a meaningful increase in AI-related revenue, growing adoption of CoCo and CoWork, and stronger migration activity are helping drive consumption growth.

Oppenheimer added that demand trends remain broad-based rather than concentrated in AI alone, while AI tools are creating a flywheel that is accelerating core platform usage.

The investment firm raised its estimates after results topped expectations and said management's guidance is based on observed customer behavior, leaving room for additional upside if current trends persist. It added that the AI opportunity remains in its early stages, with observability and Postgres-related offerings not yet contributing meaningfully.

Oppenheimer raised its price target on Snowflake to $475 from $400, with an outperform rating.

The company's shares were up nearly 22% in Thursday afternoon trading.

Price: 372.38, Change: +66.54, Percent Change: +21.76