We recently compiled a list of the 15 Buzzing AI Stocks Making Headlines. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against the other buzzing AI stocks.
Power needs for artificial intelligence and cloud computing are expanding so rapidly that some data center campuses may use more electricity than entire cities, or even states, CNBC reports. Here is what Ali Fenn, president of Lancium, a company that secures land and power for data centers had to say about technology companies:
“Technology companies are in a “race of a lifetime to global dominance” in artificial intelligence. It’s frankly about national security and economic security. They’re going to keep spending because there’s no more profitable place to deploy capital”.
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As such, it is important to note that renewable energy isn’t going to be enough to meet their power needs. According to developers, natural gas will also have to play a role. In turn, this need will slow down the progress towards meeting carbon dioxide emission targets. Nat Sahlstrom, chief energy officer at Tract, a Denver-based company that secures land, infrastructure, and power resources for such facilities, further reveals how data center companies have already begun operating at a scale where they have started “tapping out against the existing utility infrastructure”.
In other news, Uber is reportedly building a fleet of gig workers for labeling data for AI models. The new data labeling division, known as Scaled Solutions, will have workers complete projects for the company’s internal business units as well as serve outside customers, including self-driving vehicle company Aurora Innovation and video game developer Niantic, according to a report from Bloomberg. The ride-hailing company has started recruiting contractors in countries including the U.S., Canada, and India, among others.
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. On November 25, Wedbush upgraded Snowflake Inc. (NYSE:SNOW) to “Outperform” from Neutral with a $190 price target. The analyst told investors in a research note that it’s time for the broader software space to “get in on the AI party”, upgrading stocks such as Elastic, Palantir, and Salesforce alongside. Wedbush, bullish about the next phase of the artificial intelligence revolution, said that the enterprise consumption phase will begin in 2025 with the launch of large language models as use cases are “exploding”. The true adoption of generative AI will be a major catalyst for the software sector. In particular, Snowflake is well-placed to benefit from the increasing demand for AI-driven solutions.
Overall SNOW ranks 5th on our list of the buzzing AI stocks that are making headlines. 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.
