Snowflake plans $3.5B convertible notes: Can SNOW hold $318 support?

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Mykhailo Ihnatenko

29.09.2026

Snowflake plans $3.5B convertible notes: Can SNOW hold $318 support? — Snowflake stays range-bound as a $3.5 billion convertible offering adds pressure

After a strong September run, Snowflake has shifted from momentum into consolidation. Investors are now weighing continued demand for the company’s AI products against an unexpectedly large capital raise that changes the short-term balance of risks.

SNOW price prediction

24H -1.7%

$300.89

48H -2.21%

$299.33

7D 0.17%

$306.59

1M -7.85%

$282.04

3M -27.95%

$220.54

6M -49.09%

$155.83

12M -14.18%

$262.68

Detailed

Current price: $306.08 -24.1900 7.32%

Closed 10/30

Daily range 295.26

315.00

Weekly range 295.26

343.34

Snowflake has revealed its plans to release $3.5 billion worth of 0% Convertible Senior Notes in the form of $1.3 billion maturing in 2029 and $2.2 billion maturing in 2031. Snowflake has also given the buyers an option to purchase an extra $500 million of shares. Part of the proceeds is expected to be used to repurchase existing 2027 convertible notes, fund capped-call transactions and cover general corporate purposes, including potential buybacks, acquisitions and strategic investments.

For the stock, the news release is short-term negative. Although the bonds have zero coupon payments, the convertible feature adds shareholder dilution risk for the future. Snowflake is working to mitigate the effects of that risk with capped call arrangements.

$318 support becomes critical near the 50-day SMA

SNOW’s technical structure has changed little since the previous analysis. The shares continue to trade within a broad $318–$342 range.

A break and sustained move below $318, where the 50-day SMA is currently located, could trigger a correction toward the psychological $300 support level.

A breakout above $342, by contrast, could accelerate the move toward resistance near $363. With RSI (14) having moved back into neutral territory, this remains the base-case scenario over the next several days.

Snowflake now needs demand to absorb new financing concerns

The bond market is yet another consideration for Snowflake. As of September 29, the U.S. Treasury yield was around 5.23%, close to the 5.274% seen on Monday, the highest since 2007.

For SNOW, this background is also linked with the firm’s own history of convertible debt. On the one hand, the zero coupon minimizes the burden of the interest payments, while the capped calls are intended to mitigate dilution risks. On the other hand, a multibillion-dollar deal places more attention on the capital structure of Snowflake in a period of high financing costs.

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