Snowflake (SNOW) is a "strong" second-derivative player in the artificial intelligence revolution and is "well-positioned" to benefit from rising enterprise demand for AI applications as more workloads move to the cloud over the next 12 to 18 months, Wedbush Securities said in a company report Monday.

The brokerage said it expects "another robust quarter" of growth when Snowflake reports fiscal Q1 results after the bell on May 27, as Wall Street's revenue estimate of $1.32 billion appears "conservative."

Wedbush analysts cited continued strength in Snowflake's core data warehousing business and growing enterprise demand for secure, governed and auditable data infrastructure to support AI workloads.

The brokerage also highlighted Snowflake's $9.77 billion remaining performance obligations backlog and its expanding customer base of more than 13,000 clients as indicators of future growth.

Snowflake's "model-agnostic" platform allows enterprises to work with AI models from companies such as Amazon-backed (AMZN) Anthropic and Microsoft-backed (MSFT) OpenAI without re-architecting data pipelines, reinforcing its role as a "trusted" layer between enterprise data and AI systems, the brokerage said.

Wedbush maintained an outperform rating on Snowflake, with a price target of $270.

Shares of Snowflake were up 3.9% in Tuesday trading.

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