Artisan Mid Cap Fund Exits Snowflake Investment

Concerns over elevated valuation and potential competition from large language models prompt fund to sell position.

Feb. 23, 2026 at 2:49pm

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Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for the Artisan Mid Cap Fund. The fund exited its positions in Snowflake Inc. (NYSE:SNOW) and Ferguson during the quarter, citing Snowflake's elevated valuation and potential challenges from large language models that could impact the company's value proposition.

Why it matters

Snowflake is a leading player in the data infrastructure space, enabling organizations to unlock greater value from their data. The fund's decision to exit the position highlights concerns about Snowflake's valuation and the potential disruption from emerging technologies like large language models, which could threaten the company's competitive advantage.

The details

Artisan Mid Cap Fund stated that it exited the Snowflake position following a strong run, given the elevated valuation paired with the potential for decelerating revenue growth due to uneven consumption trends. Furthermore, the fund noted that Snowflake is most commonly used by customers for structured data, and there is the potential for large language models to allow enterprises to effectively unlock the benefits of unstructured data, bringing Snowflake's value proposition more into question.

  • Artisan Partners released its fourth-quarter 2025 investor letter on February 23, 2026.
  • Snowflake Inc. (NYSE:SNOW) stock closed at $172.50 per share on February 20, 2026.

The players

Artisan Partners

An investment management company that released the fourth-quarter 2025 investor letter for the Artisan Mid Cap Fund.

Snowflake Inc. (NYSE:SNOW)

A cloud-based data platform company based in Bozeman, Montana.

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The takeaway

Artisan Mid Cap Fund's decision to exit its Snowflake investment highlights the fund's concerns about the company's elevated valuation and the potential disruption from emerging technologies like large language models. This move suggests that the fund believes there may be better investment opportunities in the AI and data infrastructure space that offer greater upside potential with less downside risk.