We recently published a list of 10 AI News Stories You Can’t Miss. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against other AI news stories you can’t miss.
OpenAI launched ChatGPT in late November 2022. Although it had zero fanfare when it was launched, the platform has grown exponentially ever since. As of today, it boasts more than 200 million users worldwide, driven by the generative AI craze that has made it a hit.
It can be safe to say that the chatbot had unofficially ushered in the AI era and a race for businesses to capitalize on it. Initially, companies started slowly by integrating artificial intelligence into their offerings to pinpoint what works and what doesn’t.
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As of today, they are taking giant leaps into the AI realm, confident of the fruits they will reap once everything is in place.
“2023 was really a year of industry and businesses wrapping their heads around AI. 2024 is the year we’re starting to see real-scale deployments of our technology”.
– James Dyett, head of platform sales of OpenAI.
Countless innovations in AI prove how the technology continues to be a strong force today. In the latest news, Enfabrica, a California-based startup that aims to make AI chips work more efficiently together at scale, recently announced that it has raised $115 million in funding and plans to release its newest chip early next year.
The startup is tackling one of the biggest technical problems that has emerged in the AI field. The problem is related to tying tens of thousands (or more) of chips together with a network. The chip company strives to allow computing chips to simultaneously talk to more parts of a network.
According to co-founder and CEO Rochan Sankar, current systems can link about 100,000 AI chips before the network slows down. Sankar says chips from Enfabrica could increase this figure to about 500,000 chips, making it possible to train even larger AI models.
“It’s become apparent in the last six to nine months that the attributes of that network really drive the capability of that (computing power), whether it’s bandwidth, resiliency or recovery from loss. All these things matter when you start running at scale.”
In other news, OpenAI has recently launched a free training course for teachers with non-profit partner Common Sense Media. The training will enable teachers to understand artificial intelligence and use it efficiently. The move comes amid OpenAI promoting a positive image of ChatGPT in education. Previously, ChatGPT had been causing a frenzy as it helped students spin-off papers, complete their homework, and even write novels.
“My goal in this role is to put AI into the hands of every student and every teacher… and also give them the skills to learn how to do it responsibly and effectively”.
– Former Coursera executive Leah Belsky.
Belsky revealed that student adoption of ChatGPT is “very, very high,” and parents are generally supportive, realizing that AI skills as essential for future careers.
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 AI-driven data cloud company that enables customers to create generative AI applications and build large language models.
On Tuesday, November 19, Mark Murphy from J.P. Morgan assigned a “Buy” rating on Snowflake Inc. (NYSE:SNOW) with a price target of $175.00. Murphy’s buy rating on Snowflake is based on the company’s strategic advancements in the AI sector and strong market position. Snowflake’s strong structured data capabilities have enabled it to capitalize on AI-driven opportunities. Some areas, such as unstructured data, are dominated by competitors such as Databricks, but the company’s ongoing development indicates a promising future. Moreover, the strong demand for large language models has enabled Snowflake’s AI tools such as Cortex AI to gain traction. Its potential is also noticed through expanding partnerships with tech partners. Overall, strength in AI demand, as well as innovation and market adaptability, have led to a positive outlook and rating.
Overall, SNOW ranks 4th on our list of AI news stories you can’t miss. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
