Snowflake Inc. (NYSE:SNOW) stock traded about 4% higher Wednesday as investors favored cloud and artificial intelligence-linked software stocks. The Nasdaq rose 0.72%, while the S&P 500 gained 0.44%.

LSEG Expands Snowflake Partnership

Separately, Snowflake announced Wednesday that LSEG expanded its collaboration with the company under a new five-year, enterprise-wide agreement.

The partnership will combine LSEG's financial data and market infrastructure with Snowflake's AI Data Cloud. It will also expand joint go-to-market efforts and give customers broader access to LSEG data through Snowflake Marketplace.

LSEG plans to increase its use of Snowflake across data and analytics, reporting, AI and risk intelligence. Snowflake will also use LSEG's World-Check services for customer onboarding and third-party risk management.

The companies said the expanded relationship will help financial institutions use AI on licensed LSEG data alongside proprietary and third-party information within governed cloud workflows.

Technical Analysis

Snowflake remains above its major moving averages.

The stock traded 3.2% above its 20-day simple moving average of $333.29. It was also 7.2% above its 50-day SMA of $320.79 and 51.7% above its 200-day SMA of $226.76.

The 20-day SMA remains above the 50-day SMA. In addition, the 50-day SMA crossed above the 200-day SMA in July, forming a golden cross.

However, momentum has cooled. The MACD remains below its signal line, with a negative histogram.

Traders may watch $348.50 as near-term resistance. Support sits around $317.50, close to the 50-day moving average.

Analyst Outlook

Snowflake carries a Buy consensus rating with an average price forecast of $427.91.

Macquarie maintained a Neutral rating and raised its price forecast to $350 on Sept. 4. Goldman Sachs maintained a Buy rating and raised its forecast to $436. Argus Research also maintained a Buy rating and increased its forecast to $450.

MarketDash Edge

Snowflake has a Momentum score of 96.69 on the MarketDash Edge scorecard.

The score reflects the stock's strong relative price performance. However, the weaker MACD suggests traders may watch for signs that momentum is slowing.

ETF Exposure

Snowflake is a major holding in several technology-focused funds. The Global X Cloud Computing ETF (NASDAQ:CLOU) has a 7.30% weighting in the stock.

The Neuberger Berman Disrupters ETF (NYSE:NBDS) has a 4.80% weighting, while the YieldMax AI & Tech Portfolio Option Income ETF (NYSE:GPTY) has a 6.77% weighting.

Because Snowflake carries sizable weights in these funds, ETF inflows and outflows can contribute to trading activity in the shares.

Price Action

SNOW Price Action: Snowflake shares were up 4.02% at $343.59 at the time of publication Wednesday, according to market data.