01. Snowflake Inc. (NYSE:SNOW)
Average Analyst Share Price Target Upside: 53.70%
Average Analyst Share Price Target: $196.79
Topping our list of ten best big data stocks to buy now is Snowflake Inc. (NYSE:SNOW). Snowflake Inc. (NYSE:SNOW) is attracting significant attention from analysts, who foresee a strong growth trajectory for the company. With an average share price target of $196.79, analysts predict a potential upside of 53.70%. This optimism is fueled by Snowflake Inc. (NYSE:SNOW) innovative product offerings and robust demand in the data management sector, positioning it well for future gains. The company’s cloud-based data warehousing solutions offer a unique advantage by being compatible across multiple cloud platforms, making it an ideal choice for organizations with complex data needs.
KeyBanc Capital Markets remains optimistic about Snowflake Inc. (NYSE:SNOW), maintaining an Overweight rating and a $168.00 price target on August 16. The firm expects Snowflake Inc. (NYSE:SNOW) to surpass market expectations in its upcoming earnings report, driven by strong bookings and conservative growth estimates. New products like Cortex, Dynamic Tables, and Container Services are anticipated to boost growth. Additionally, Snowflake Inc. (NYSE:SNOW) user-friendly platform, diverse product offerings, and independence from major cloud services are seen as significant advantages. High demand for its new services, particularly in AI and data management, further supports a positive outlook for the company’s growth.
Snowflake Inc. (NYSE:SNOW) margins are stable, and its focus on the expanding AI market positions it for future gains. With its current valuation much lower than its peak, Snowflake Inc. (NYSE:SNOW) presents a compelling opportunity, especially as interest rates decline and investors look for high-growth tech stocks.
ClearBridge Multi Cap Growth Strategy made the following comment about Snowflake Inc. (NYSE:SNOW) in its Q2 2023 investor letter:
“While the ClearBridge Multi Cap Growth Strategy has limited mega cap exposure, which has been a recent headwind to relative performance, we own several companies that stand to benefit from the explosive growth in generative AI. These holdings play key roles in building out the necessary infrastructure and helping customers leverage capabilities enabled by this emerging technology.
Snowflake Inc. (NYSE:SNOW), a cloud-based data platform company, is positioned well to help enterprises better leverage their own data to get the most out of AI models. Though it is still early days in terms of adoption, Snowflake saw workloads for data science, machine learning, and AI use cases grow more than 90% year-over-year in its most recent quarter.”
While we acknowledge the potential for SNOW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ACN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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