Snowflake (NYSE: SNOW) is only the latest example of how the AI flywheel is gaining momentum. Demand for the company’s product is hot, exceeding expectations and driving management to increase spending. Increased spending leads to new demand, increased revenue, and an improved outlook—and the cycle has only just begun.
The likely outcome is that Snowflake and other well-positioned software-as-a-service companies will continue to accelerate in the coming quarters and sustain high-level growth well into the future. More importantly, Snowflake, unlike some other AI up-and-comers, is profitable and driving intrinsic value for its shareholders.
