Analyst Explains How AI Will Benefit Snowflake (SNOW)

We recently published Top 10 Buzzing Stocks to Watch as Analysts Predict AI-Led Bull Market Will Continue. Snowflake Inc (NYSE:SNOW) is one of the top buzzing stocks to watch.

D.A. Davidson’s Gil Luria explained in a recent program on CNBC how AI is helping companies like Snowflake Inc (NYSE:SNOW). The analyst has a Buy rating on the stock and a $275 price target.

“I would say that it really hasn’t changed the markets for a lot of these companies, especially in the application software, quite as much as the narrative is, and it may take time for the markets to change as well. This is a technology that’s actually not a great fit for business software. Business software is very precise. It’s very integrated. There’s workflows, permissions, connections. So it’s going to take time until new AI software startups are going to disrupt the application software companies in spite of the narratives. But there are places in software where the benefit is very clear. You have to have the data all in one place — that benefits Snowflake Inc (NYSE:SNOW). You have to observe all the applications — that benefits Datadog. You’re developing a lot more code.”

Artisan Mid Cap Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its third quarter 2025 investor letter:

“Notable trims in the quarter included Arista Networks, Snowflake and Tyler Technologies. Snowflake Inc. (NYSE:SNOW) is a leading player in data infrastructure, enabling organizations to unlock greater value from their data estates through unified access, scalable analytics and AI-driven insights across cloud environments. Following a strong performance and an elevated valuation, we trimmed our position—reflecting a degree of caution as increasingly powerful and cost-effective large language models raise questions about the long-term evolution of traditional data warehouse architectures and the role of centralized data platforms.”

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.

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