Snowflake’s (NASDAQ: SNOW) stock surged more than 20% following its Q2 fiscal year 2027 (FY2027) release because of the guidance, and it could continue to rise because of what’s to come. Strong as the results were, the outlook suggests the SaaS-Pocalypse sell-off wasn’t just wrong, but too broad. AI poses a threat and disruption is possible, but established enterprise-grade software companies that provide utility for clients are better positioned to deploy and monetize AI than AI is to build new software industries. AI is complex; it requires massive infrastructure, governance, and security that average businesses can't manage.
The market got agentic AI wrong: it didn't reduce workloads or data needs; it only accelerated them.
