"Watch The Upside Surprise" Snowflake Inc. (SNOW), Says Jim Cramer

We recently published Jim Cramer Analyzed These 10 Stocks & Discussed Inflation. Snowflake Inc. (NYSE:SNOW) is one of the stocks Jim Cramer recently discussed.

Snowflake Inc. (NYSE:SNOW) is a software company that enables businesses to consolidate and analyze data. Its shares have gained 46.6% year-to-date, primarily on the back of a strong 24% jump in August. Snowflake Inc. (NYSE:SNOW)’s shares jumped after the firm’s fiscal second-quarter earnings saw it increase its annual product revenue guidance to $4.40 billion from an earlier $4.30 billion. The guidance raise signaled to investors that Snowflake Inc. (NYSE:SNOW) was experiencing healthy catalysts from AI demand. Here is what Cramer said:

“I had Snowflake on last week. Uh, Sridhar Ramaswamy, that may have been the biggest upside surprise. So watch Zscaler and watch the upside surprise Snowflake. Cause wow, that’s a consumption model, you don’t know how to use AI. You go to Sridhar. He’ll like help you do it, help you get on. And it’s rental, you don’t have to buy.”

Previously, the CNBC TV host discussed Snowflake Inc. (NYSE:SNOW)’s growth:

“See, [growing year-on-year] 32%, people need. . these are tremendous American companies doing incredible things. And, we can be very cynical, or we can say, how do you do those numbers? How do you do it? How do you win the Super Bowl three years in a row? It’s almost impossible.”

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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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