Snowflake Skyrockets 21.5%—Is the AI Bull Run Just Beginning?

Summary
• Snowflake (SNOW) surges 21.5% intraday, hitting a 52-week high of $249.99
• Earnings beat and AI-driven guidance raise fuel 30% YTD rally
• Options frenzy: 20 contracts trade with leverage ratios up to 159.48%

At 7:20 PM ET, Snowflake’s stock is trading at $243.51, a staggering 21.5% surge from its $200.39 close. This explosive move follows a blockbuster Q2 report—adjusted EPS of $0.35 (vs. $0.27 est.) and $1.14B revenue (vs. $1.09B est.)—coupled with a 27% full-year guidance boost. The stock’s 30% YTD gain and 80% 12-month rally underscore its AI-driven momentum, but can this frenzy sustain?

Earnings Surge and AI Momentum Ignite Rally
Snowflake’s 21.5% intraday surge stems from a triple threat: (1) Q2 results beating estimates on both earnings ($0.35 vs. $0.27) and revenue ($1.14B vs. $1.09B), (2) a 27% full-year product revenue guidance raise to $4.4B, and (3) CEO Sridhar Ramaswamy’s emphasis on AI as a core growth driver. The company’s AI data cloud now serves 6,100 weekly accounts, with Snowflake Intelligence in public preview. Analysts’ average $233.55 price target (16.55% upside) and GuruFocus’ $328.07 GF Value (63.72% upside) further validate the bullish sentiment.

Data Processing Sector Quiet as Amazon Gains 1.12%
High-Leverage Calls and Gamma-Driven Bets for AI Bulls
• MACD: -3.99 (Signal: -4.36, Histogram: 0.38) – bearish crossover neutralized by bullish momentum
• RSI: 43.37 – oversold territory suggests potential rebound
• Bollinger Bands: Price at $243.51 > Upper Band ($215.82) – strong breakout
• 200D MA: $178.94 (far below current price) – long-term bullish

Top Options Picks:
• SNOW20250905C245
- Type: Call
- Strike: $245
- Expiry: 2025-09-05
- IV: 42.94% (moderate)
- LVR: 44.48% (high)
- Delta: 0.4568 (moderate)
- Theta: -0.856 (high time decay)
- Gamma: 0.0243 (high sensitivity)
- Turnover: $3.94M (liquid)
- Payoff at 5% upside ($255.68): $10.68/share
- Why: High gamma and leverage amplify gains if SNOW holds above $245. Theta decay is manageable given the 10-day expiry.

• SNOW20250905C247.5
- Type: Call
- Strike: $247.5
- Expiry: 2025-09-05
- IV: 43.29% (moderate)
- LVR: 53.87% (very high)
- Delta: 0.3988 (moderate)
- Theta: -0.788 (high time decay)
- Gamma: 0.0234 (high sensitivity)
- Turnover: $1.06M (liquid)
- Payoff at 5% upside ($255.68): $8.18/share
- Why: Aggressive bulls should target this strike for 53.87% leverage. Gamma ensures rapid delta expansion if SNOW rallies past $247.5.

Action: Aggressive bulls may consider SNOW20250905C245 into a test of the $249.99 52W high. If $245 holds, the 44.48% leverage could accelerate gains.

Backtest Snowflake Stock Performance
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Bullish Momentum Unstoppable—Act Now Before Volatility Fades
Snowflake’s AI-driven rally shows no signs of slowing, with technicals and fundamentals aligned for a breakout. The 200D MA at $178.94 and RSI at 43.37 suggest long-term upside, while options like SNOW20250905C245 offer high-leverage entry. Amazon (AMZN), the sector leader, gained 1.12% today, but SNOW’s 21.5% surge dwarfs sector moves. Watch for a $245 close above the 200D MA and $249.99 52W high to confirm the bullish case.