AI software monetization is improving, but valuation and execution risks are rising

Snowflake's 37% product-revenue growth, 126% net retention, raised fiscal 2027 guidance and expanding Cortex Code and CoWork usage provide measurable AI-consumption evidence, although its roughly 151x forward multiple is demanding. Goldman Sachs' Palantir upgrade to Buy at a $230 target, based on sovereign AI demand and an $8 billion annualized revenue run rate, reinforces the theme while leaving revenue quality and execution under scrutiny.