---
title: "SNOW Stock: Databricks' $188B Valuation Just Made Snowflake Look Undervalued"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293377192.md"
description: "Jefferies analyst Brent Thill raised Snowflake's (SNOW) price target to $310, citing Databricks' $188B valuation as a benchmark. Despite slower growth than Databricks, Snowflake trades at a discount, suggesting upside potential. Strong AI data tool demand and GPU shortages benefit both firms. Analyst consensus remains 'Strong Buy' with an average target of $301."
datetime: "2026-07-21T19:03:52.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293377192.md)
  - [en](https://longbridge.com/en/news/293377192.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293377192.md)
---

# SNOW Stock: Databricks' $188B Valuation Just Made Snowflake Look Undervalued

After privately-held cloud platform Databricks raised new funding at a $188 billion valuation, Jefferies believes that public competitor Snowflake (SNOW) could also receive a higher valuation from investors. Indeed, analyst Brent Thill reiterated his Buy rating and raised his price target to $310 from $300. His new target suggests that strong demand for AI data tools may benefit both companies, even though Databricks is growing much faster right now.

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Although Databricks did not release new financial figures with the funding announcement, the company previously said that its annualized revenue could rise above $6.9 billion during the first half of Fiscal 2027. That would equate to growth of about 80% from the previous year when revenue from large language models is included.

By comparison, Jefferies expects Snowflake to reach an annualized revenue rate of roughly $5.5 billion during the same period, with growth of about 32%. While Snowflake is growing at a slower pace, Thill believes the difference in valuation may be too wide.

## **The Valuation Gap**

Based on Databricks' current valuation and expected growth, Jefferies estimates that the private company is valued at about 17 times projected Fiscal 2028 revenue. Snowflake, meanwhile, trades at roughly 13 times expected revenue for that year.

Thill believes that Snowflake could rise to $310 even if investors continue to value it at a discount to Databricks. Applying a multiple of 15 times projected Fiscal 2028 revenue would give Snowflake an enterprise value of around $115 billion, up from the current $95 billion.

Meanwhile, Databricks CEO Ali Ghodsi said that the rising demand for GPUs led to the latest funding round. In fact, the company nearly ran out of GPU capacity in Asia as demand increased in several major markets. Jefferies believes that this strong demand could create a "rising tide" that benefits Snowflake as well. Thill also noted that early demand is improving for Databricks' Genie tool and Snowflake's CoCo and CoWork products.

## **Is SNOW** **Stock a Good Buy?**

Overall, analysts have a Strong Buy consensus rating on SNOW stock based on 33 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNOW price target of $301.09 per share implies 11.4% upside potential.

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