Top 10 AI Stocks to Watch Ahead of Potential Market Correction

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1. Snowflake Inc (NYSE:SNOW)

Number of Hedge Fund Holders: 71

Snowflake Inc (NYSE:SNOW) is a technology company providing various organizations with a cloud-based data platform. Its platform offers Data Cloud, which enables customers to consolidate data. On January 13, analysts at Oppenheimer reaffirmed Snowflake as the top stock pick for 2025, owing to strong expectations about the company’s performance and growth initiatives. The analysts raised the price target to $200 from $180, expecting the company’s earnings to rise significantly thanks to the launch of new products and increased AI workloads on the cloud.

One key factor believed to be bolstering Snowflake Inc’s (NYSE:SNOW) long-term prospects is the growing momentum in Cortex and AI. According to Oppenheimer, customers are becoming more motivated to develop apps on Snowflake’s platform by utilizing its strong AI workload handling capabilities as cloud and large language model (LLM) independence gain traction.

While we acknowledge the potential of Snowflake Inc (NYSE: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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article was originally published at Insider Monkey.

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