If you wanted proof that the AI trade still has plenty of fuel in the tank, Snowflake just provided it in spectacular fashion. The data cloud company's shares jumped more than 22% on Thursday after a blowout fiscal second-quarter report, and that surge sent a leveraged ETF tied to the stock into the stratosphere.
The T-Rex 2X Long SNOW Daily Target ETF (SNOU) was up 38.45% at $79.21 in afternoon trading, according to market data. The fund opened at $83.36, climbed as high as $86, and saw volume of about 0.4 million shares. That move brought SNOU close to its 52-week high of $85.51, a stark contrast to its 52-week low of $10.51. The ETF has now gained more than 91% year to date and 248% over the past six months, a testament to how sharply Snowflake's recent rally has boosted the leveraged product.
Snowflake's own stock was up over 22% at $382 at one point, after touching an intraday high of $384.56. The shares are up roughly 70% in 2026 and trading at their highest level since December 2021.
Snowflake's AI Growth Drives the Rally
The catalyst was Snowflake's accelerating growth and expanding AI business. Second-quarter product revenue jumped 37% year over year to $1.49 billion, and the company raised its fiscal 2027 product revenue outlook to $6.07 billion from $5.84 billion. Snowflake is increasingly positioning its data platform as the infrastructure for enterprise AI, with products like Cortex Code, CoCo, and CoWork helping customers build AI applications and drive greater data consumption.
Wall Street responded with a wave of price-target increases. Rosenblatt's Blair Abernethy raised his target to $370 from $345, Needham's Mike Cikos to $450 from $330, Cantor Fitzgerald's Thomas Blakey to $430 from $405, and Canaccord Genuity's Kingsley Crane to $450 from $325. BTIG, DA Davidson, and JPMorgan also raised their targets, with JPMorgan's Samik Chatterjee moving to $426 from $285. Analysts cited stronger AI adoption, accelerating core consumption, and growing AI monetization as signs that Snowflake's growth reacceleration could prove durable.
SNOU's 2X Upside Comes With Added Risk
Snowflake's AI momentum has also come with a margin trade-off. The company now expects fiscal-year non-GAAP product gross margin of 74%, reflecting a higher mix of AI workloads that carry lower contribution margins. Still, non-GAAP operating margin expanded more than 400 basis points year over year to 15%, and full-year operating margin guidance was raised to 14.5%.
For SNOU, Thursday's move illustrates the power of daily leverage. The ETF seeks to deliver 2X the daily performance of Snowflake, allowing a major move in the underlying stock to produce an outsized gain. But that leverage cuts both ways. A pullback in Snowflake could produce an equally amplified decline in SNOU, while the effects of daily compounding mean its longer-term returns can differ significantly from simply twice Snowflake's cumulative performance.
