We recently published a list of 15 AI News Stories Shaking Up Wall Street. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against other AI news stories shaking up Wall Street.
U.S. President Joe Biden met with China’s President Xi Jinping at the APEC Summit in Lima, Peru, on November 16. According to the White House, the two reached an agreement affirming that human beings, not artificial intelligence, should make decisions about the use of nuclear weapons.
“The two leaders affirmed the need to maintain human control over the decision to use nuclear weapons. The two leaders also stressed the need to consider carefully the potential risks and develop AI technology in the military field in a prudent and responsible manner”.
-The White House said in a statement.
READ ALSO: 15 AI News You Must Read Today and 15 AI News That Broke The Internet.
This agreement marks a groundbreaking step in addressing two complex and challenging topics: nuclear weapons and artificial intelligence. However, it remains unclear whether the two nations will conduct additional discussions or actions on the matter.
At the same time, Xi vowed on Saturday to work with the incoming U.S. administration of Donald Trump as he held his final talks with outgoing President Joe Biden on various topics. Xi acknowledged the “ups and downs” between the countries after Trump’s election.
“China’s goal of a stable, healthy and sustainable China-U.S. relationship remains unchanged. China is ready to work with the new U.S. administration to maintain communication, expand cooperation and manage differences.”
In other trailblazing news, there is a new artificial intelligence program developed by Washington State University. Reportedly, it can spot signs of serious diseases more accurately, and faster, than trained human researchers.
According to scientists, patients can receive the results of their mammogram or MRI within an hour. Washington State Professor Michael Skinner further reveals that the process can be done in minutes, and patients don’t have to wait hours or days for their image analysis on the MRI by their physician.
“You can take that image, run it through this type of program, and it can tell you exactly where the abnormalities are. But it (the A.I. model) would still need to be trained each time.”
– Dr. Skinner.
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.
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A software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.
Snowflake Inc. (NYSE:SNOW)
Market Capitalization: $42.22 billion
Snowflake Inc. (NYSE:SNOW) is an artificial intelligence data cloud company benefiting from the AI boom as data warehouses are a critical component in making AI useful for enterprises.
On November 15, Piper Sandler analyst Brent Rabatin reiterated an “Overweight” rating and $165.00 price target on Snowflake Inc. (NYSE:SNOW). The analyst remains cautious ahead of Snowflake’s earnings report, highlighting that the negative investor sentiment regarding the stock may not be alleviated. The sentiment stems from several factors such as increased competition from cloud providers, slowdown in cloud computing growth, and challenges in adapting to the AI landscape. The Overweight rating is maintained on the back of an attractive risk-reward profile, with analysts suggesting buying on pullbacks as growth is expected to recover in the following year.
“Earnings next Wednesday (11/20) may not be the cure for negative investor sentiment that has soured on SNOW and remains cautious given the expected ~6% top-line drag on platform performance improvements likely to materialize, pressuring 2H product growth to fall below 25% (vs. 32% in 1H). Growth concerns are partially reflected in the 35% sell-off YTD (vs. +25% S&P 500) and the valuation multiple, with CY26E EV/FCF falling to 29x (vs. 46x entering this year). We maintain an Overweight rating on favorable risk-reward and would add to positions on pullbacks ahead of a potential growth recovery next year”.
Overall, SNOW ranks 5th on our list of AI news stories shaking up Wall Street. 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 time frame. 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
