Jim Cramer on Snowflake: "One of the Rare Software Companies That's Convinced Wall Street It Can Make a Killing From AI"

Snowflake Inc. (NYSE:SNOW) is one of the stocks Jim Cramer shed light on. Cramer highlighted the stock’s price action after its earnings, as he commented:

“What the heck just happened to the stock of Snowflake? The company reported a seemingly robust quarter after the close, and the stock breaking down in after-hours trading. [Does] that make sense? I don’t know. Some of that’s because Snowflake was up more than 70% for the year going into today’s close. This is one of the rare software companies that’s convinced Wall Street it can make a killing from AI rather than just be killed by AI. And the numbers have mostly backed them up. Today, there was a fly in the ointment. Snowflake’s operating margin guidance for the current quarter came in about 7%, analysts were… looking for 8.5%… It was lower than people expected.”

Snowflake Inc. (NYSE:SNOW) provides a cloud platform that helps organizations pull their data into one place so they can analyze it, build data apps, share information, and use AI to solve business challenges.

While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, 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.