We simply coated the 10 Best Stocks to Buy According to AI Bull Brad Gerstner. Snowflake (NYSE:SNOW) ranks #6 (see the 5 Best Stocks to Buy According to AI Bull Brad Gerstner).
Altimeter Capital’s Stake: $444,775,213
Snowflake (NYSE:SNOW) sells a cloud-based information platform that lets firms retailer, course of, and analyze huge quantities of information. Not like different SaaS firms, Snowflake makes use of a consumption-based mannequin, which implies which means clients pay based mostly on how a lot information they use, question, and compute.
The inventory is down roughly 44% this 12 months, as buyers fear that AI might disrupt conventional SaaS fashions and cut back software program spending. However Snowflake (NYSE:SNOW) bulls consider these fears are overblown.
Their case is easy: Snowflake (NYSE:SNOW) isn’t actually a SaaS firm within the conventional sense. Its usage-based mannequin truly advantages from AI, not suffers from it. As firms undertake AI, they generate extra information, run extra queries, and require extra computing energy. All of this instantly will increase Snowflake’s income. The corporate’s backlog (remaining efficiency obligations) rose 40% 12 months over 12 months in This fall.
BofA just lately highlighted Snowflake’s (NYSE:SNOW) accelerating progress and stated the corporate is benefiting from each its core information enterprise and early traction in AI instruments. The financial institution famous Snowflake’s product income progress pushed by stronger core demand and AI merchandise like Intelligence and Cortex AI. It additionally identified that Snowflake (NYSE:SNOW)’s Intelligence software is now utilized in 2,500 accounts, doubling quarter-over-quarter, signaling rising adoption.
Aristotle Progress Fairness Fund acknowledged the next relating to Snowflake Inc. (NYSE:SNOW) in its fourth quarter 2025 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a number one cloud-based information platform that empowers organizations to consolidate, handle, and analyze their information securely and effectively. We consider its strong monetary profile, that includes sturdy margins and a transparent path to worthwhile progress at scale, positions Snowflake as a….” (Click Here To Read The Letter in Detail)
Whereas we acknowledge the potential of SNOW as an funding, we consider sure AI shares provide higher upside potential and carry much less draw back danger. In case you’re in search of an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the best short-term AI stock.
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