10 Best Machine Learning Stocks According to Analysts

5. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Investors  in Q1 2024: 73

Analyst Average Share Price Target: $195.42

Upside: 46%

Snowflake Inc. (NYSE:SNOW) is a data warehousing firm that offers customers the ability to store and analyze data through platforms such as the Data Cloud. It offers machine learning through Snowflake ML which enables users to create a machine learning layer on top of their existing data sets. This removes the need to create separate databases for machine learning to improve efficiency. Snowflake Inc. (NYSE:SNOW) enjoys a substantial position in its market, as evidenced by its 22% market share in the data warehousing industry. This means that as opposed to revenue growth, investors expect more recurring revenue and tighter cost control from management. Any misses on these fronts will affect the shares, and this was also the case in May 2024 as the stock fell by 5% after Snowflake Inc. (NYSE:SNOW)’s full year gross profit and operating margin guidance were lowered to 75% and 3%, down from the earlier 76% and 6%, respectively. This followed a devastating 27% share price drop in February after Snowflake Inc. (NYSE:SNOW) withdrew its $10 billion revenue target for FY 2029.

Snowflake Inc. (NYSE:SNOW) expanded its machine learning portfolio by announcing an acquisition in May 2024. Here’s what management had to say about this during the Q1 2025 earnings call:

We announced our intent to acquire certain technology assets and hire key employees from TruEra. TruEra is an AI observability platform that provides capabilities to evaluate and monitor large language model apps and machine learning models and production. We are excited to welcome approximately 35 employees from TruEra to Snowflake, the impact of the transaction is reflected in our outlook.