20 Trending AI Stocks on Latest News and Ratings

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9. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 69

Snowflake Inc. (NYSE:SNOW) is a cloud-native data warehouse company that leverages cutting-edge technologies like machine learning (ML), artificial intelligence (AI), and generative AI to enhance data-driven decisions. The SnowFlake Platform, a single, fully managed platform that powers the AI Data Cloud, enables enterprises to automate data management, governance, security, availability, and data resiliency. The company’s data cloud is used by more than 10,000 companies to run their businesses with AI, data, and applications.

Snowflake Inc. (NYSE:SNOW) hasn’t attracted the right attention from investors in the previous months. Falling over 40% in the current year and losing more than two-thirds of its value, there has been a certain negativity around the stock. This is true despite the company delivering topline performance in the current period on the back of its cloud data warehousing business that allows its customers to consolidate their data and generate insights. One reason explaining the negativity and stock falling sharply following the modest beat is that its guidance failed to impress investors.

Despite this, Trefis, a financial community led by MIT engineers and Wall Street analysts, considers cloud computing as one of the “sunshine sectors”. Goldman Sachs agrees, stating how so-called “platform” stocks are currently the most attractive part of the AI sector. Revisiting their “four phases of AI”, the team of Goldman analysts led by Ryan Hammond examined which stocks would yield the best results in the coming months. The “platform” stocks such as SNOW are “an attractive subset of the Phase 3 cohort because they will be primary beneficiaries of the next wave of generative AI investments”.

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