Citi analyst Tyler Radke argues the recent 30% selloff in Snowflake stock is excessive, reiterating a Buy rating despite trimming the target to $270 from $300. The cloud data analytics firm's shares have tumbled since its third-quarter results, but Radke sees the pullback as overdone given Snowflake's strong AI-proof consumption model.

Radke cited Citi's channel checks showing continued strength in Cortex and Snowflake Intelligence, with partners reporting most customers now utilizing Cortex capabilities. The analyst noted Snowflake's substantial $200 million deals with Anthropic and OpenAI, plus collaboration with Google Gemini, signal growing customer demand moving toward meaningful monetization.

Snowflake Intelligence is demonstrating strong returns, with some financial services and retail customers experiencing 20-30% higher consumption. Radke also highlighted accelerating financial services IT spending that could boost migration activity. With CEO Sridhar Ramaswamy reporting Intelligence now spans over 2,000 customers, up from 1,200 in the fiscal third quarter, Radke expects the upcoming quarter to beat by 3-4% despite challenging holiday timing.