Snowflake (SNOW) Transforms From Cloud Data Warehouse to AI Platform, Raymond James Assigns Outperform

Snowflake Inc. (NYSE:SNOW) ranks among the best big data stocks to invest in. Raymond James gave Snowflake Inc. (NYSE:SNOW) an Outperform rating on December 16, arguing that the stock’s trajectory would be determined by the outcome of a number of key strategic and financial disputes in the years ahead. Analyst Adam Tindle believes Snowflake Inc. (NYSE:SNOW) is at a tipping point as it transitions from a cloud data center to a broader information and artificial intelligence platform, with long-term growth and margin sustainability still being scrutinized.

Tindle highlights Snowflake’s growing AI portfolio, which has now exceeded a $100 million AI revenue run-rate. The analyst also identified net revenue retention, Global 2000 penetration, and attach rates in new workloads as key indicators for determining whether the company is capable of increasing wallet share.

Tindle further stated that by integrating Apache Iceberg and establishing the Polaris Catalog, Snowflake Inc. (NYSE:SNOW) has reduced obstacles to adoption in open data environments. While this helps with gaining new clients, it also lessens retention.

Snowflake Inc. (NYSE:SNOW) is an American cloud-based data storage company that provides a platform for data analysis and simultaneous access to large datasets with low latency. The platform is based on AWS, Microsoft Azure, and Google Cloud Platform. Snowflake Inc.’s (NYSE:SNOW) predictive analytics features uncover patterns in data from diagnostic and descriptive analytics, enabling predictive data modeling of future trends.

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.

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