The T-Rex 2X Long SNOW Daily Target ETF (BATS:SNOU) surged up on Thursday as Snowflake Inc. (NYSE:SNOW) shares jumped over 22% following a strong fiscal second-quarter report and upbeat guidance.

• Snowflake shares are testing new highs. What’s behind SNOW new highs?

SNOU Nears 52-Week High After Explosive Rally

SNOU was up 38.45% at $79.21 at the time of publication Thursday afternoon, according to Benzinga Pro data. The leveraged ETF opened at $83.36 and climbed to $86 before pulling back, while trading volume reached about 0.4 million shares.

The move brought SNOU close to its 52-week high of $85.51. The ETF’s previous 52-week low was $10.51, highlighting the scale of its recent advance.

SNOU has gained more than 91% year to date and 248% over the past six months, underscoring how sharply the leveraged product has benefited from Snowflake’s recent rally.

Snowflake shares, meanwhile, were up more than 22% at $382 at one point, after touching $384.56 intraday. The stock is up roughly 70% in 2026 and trading at its highest level since December 2021.

Snowflake’s AI Growth Drives the Rally

The underlying catalyst was Snowflake’s accelerating growth and expanding AI business. Second-quarter product revenue jumped 37% year over year to $1.49 billion, while 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 infrastructure for enterprise AI, with products including 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 SNOW, 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.

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