We recently published a list of 10 Latest AI News You Shouldn’t Miss. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against other latest AI news you shouldn’t miss.
Anastasia Amoroso, iCapital chief investment officer, said in a latest program on CNBC that 2025 will be the year of AI software, data centers and power. She believes the AI rally is broadening out.
“Artificial intelligence, as I mentioned, is carrying itself over into 2025, and I think it’s broadening. Last year, last two years, have been about semiconductors. I think this year has to be about AI software; it has to be about AI monetization, but it also has to be about AI power. And it’s not just, you know, a number of headlines talking about data centers and how much they consume, and the fact that I think you need eight times the electricity to run an AI data center. It’s an actual real trend, which I also think the Trump Administration is going to support as well.”
The analyst also said investors should consider alternative investments or private markets as she believes private equity valuations are below the levels seen in public markets.
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For this article we picked 10 AI stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. 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).
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Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Investors: 71
Snowflake Inc. (NYSE:SNOW) was among the leading artificial intelligence software stocks to watch in the year ahead, say analysts at Wedbush.
Snowflake Inc. (NYSE:SNOW) is a Cloud-based data warehouse offering data storage and analytics services. Snowflake Inc. (NYSE:SNOW)’s moat lies in its data technologies that let companies analyze and make sense of unstructured data. Amid the generative AI boom, companies are ready to spend a fortune to use huge datasets to their advantage. This would bode well for Snowflake Inc (NYSE:SNOW). The company’s usage-based pricing model also gives it an edge in the market. Snowflake Inc (NYSE:SNOW) expects the total addressable market for its Cloud data platform to rise to $342 billion by 2028, which is double the market size of 2023.
Baron Global Advantage Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q3 2024 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform predominantly used for data analytics. Shares fell 15.2% in the third quarter due to a cybersecurity incident, a shifting competitive landscape, a change in leadership, and general macro complexities which are pressuring customer IT budgets. With generative AI (Gen AI) front and center, both investors and customers are closely evaluating Snowflake’s positioning in the future data ecosystem. Databricks and other competitors whose core users are data scientists who are also key buyers of Gen AI technologies, are benefiting. In addition, while Snowflake’s product innovation push should fuel future growth, it may also lead to short-term headwinds to profitability. Management reported healthy demand for its core data analytics, evidenced by solid growth rates among current customers alongside new go-to-market initiatives that could support growth. We are optimistic the new CEO, Sridhar Ramaswamy, can lead the company towards an AI-centric strategy, and therefore remain shareholders.”
Overall, SNOW ranks 9th on our list of the latest AI news you shouldn’t miss. While we acknowledge the potential of SNOW, our conviction lies in the belief that under the radar 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.
