We recently compiled a list of the 15 AI News Shaping Wall Street Today. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against the other AI stocks that are shaping Wall Street today.
In recent news reported by Reuters, a U.S. congressional commission proposed a Manhattan Project-style initiative to fund the development of AI systems that will be as smart, or even smarter, than humans. The proposition is amid the intensifying competition from China over advanced technologies.
“We’ve seen throughout history that countries that are first to exploit periods of rapid technological change can often cause shifts in the global balance of power. China is racing towards AGI … It’s critical that we take them extremely seriously”
– Jacob Helberg, a USCC commissioner told Reuters
Helberg, while recognizing that energy infrastructure is a significant bottleneck for training large AI models, suggests that streamlining the permitting process for data centers is one way of enabling a public-private partnership that could accelerate AI development.
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This news follows a rumor that artificial intelligence models are hitting a “wall”. Separate sources, including Reuters, The Information, and Bloomberg, have reported that companies such as OpenAI are failing in their next endeavors. Unnamed sources have claimed that OpenAI’s Orion is “so far not considered to be as big a step up from OpenAI’s existing models as GPT-4 was from GPT-3.5.”
However, OpenAI is pushing back on these rumors, stating that there is “no wall”. Despite having not reached a wall, analysts do admit that it’s possible to have reached a turning point.
“We haven’t seen a breakthrough model in a while. Part of it is that we’ve exhausted all the human data, and so just throwing more compute at the same data may not yield better results.”
– Gil Luria, managing director at investment group D.A. Davidson
Gary Marcus, NYU professor emeritus and outspoken critic of AI hype, has this to say:
“The economics are likely to be grim. LLMs will not disappear, even if improvements diminish, but the economics will likely never make sense…”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.
Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 71
Snowflake Inc. (NYSE:SNOW) is an artificial intelligence data cloud company that leverages AI and machine-learning capabilities into its platform, allowing customers to create generative AI applications and build large language models.
On November 19, Snowflake Inc. (NYSE:SNOW) announced at the Microsoft Ignite conference that it is expanding its partnership with Microsoft to launch a new connector for Microsoft Power Platform. The connector will enable two-way access between Dataverse, the enterprise data platform for agents, and Snowflake’s AI Data Cloud. By simplifying data interoperability between Microsoft Power Platform, Microsoft’s low-code/no-code services suite, Dynamics 365, and the Snowflake AI Data Cloud, the connector will be able to offer developers and business users the ability to build and leverage custom enterprise AI applications using their enterprise data in Snowflake. Ultimately, customers will be able to simplify data collaboration, enhance enterprise insights, and leverage the power of AI for individual business needs.
“Snowflake and Microsoft have a shared vision, rooted in collaboration, to help customers gain deeper data-driven insights and break down data silos as effectively as possible. In the age of AI, this shared vision has taken on even greater meaning, and through our bidirectional data access integration, we’re giving developers and business users the tools they need to build powerful AI applications without the need to move or copy data – improving both collaboration and productivity. Today’s announcement deepens our partnership with Microsoft, and we look forward to continuing to innovate together in service of our customers.”
– Christian Kleinerman, EVP of Product, Snowflake.
Overall SNOW ranks 8th on our list of the AI stocks that are shaping Wall Street today. While we acknowledge the potential of SNOW as an investment, 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 SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.