Snowflake’s (NYSE: SNOW) stock price succumbed to marketwide fear of AI software-as-a-service (SaaS) disruption, sending it to long-term lows. However reasonable the fears may be, the sell-off is overblown, since AI is software, and software companies like Snowflake lean hard into it. While it is possible for an AI modeler to disrupt Snowflake's business, the more likely scenario, which is already happening, is that Snowflake embeds AI models into its business.
Not only is AI available as a tool throughout its stack, but Snowflake’s product is also critical to AI as it manages data in a unified, cross-cloud manner, enabling direct interface between enterprise data and leading AI models. The takeaway is that Snowflake is central to AI training, especially for inference, the next phase, and its stock price is setting up for a reversal and recovery.
