An Exciting Shareholder for Investors: Snowflake

Snowflake Inc.: Stock of the Year

Snowflake Inc. (NYSE:SNOW) stands out as one of the most exciting stocks that investors should pay attention to. The company, a leader in the data infrastructure space, has shown strong performance this year (~76%).

On November 4, William Blair analyst Jason Ader maintained his Buy rating on the stock without setting a price target. Ader's positive assessment came after the various innovations presented at the company’s “Build” Developer Conference, which impacted the analyst.

Key details highlighted by Ader include the official launch of the company’s Snowflake Intelligence application. The analyst noted that such innovations have strengthened Snowflake Inc.'s (NYSE:SNOW) competitive position in the data analytics space and laid the groundwork for growth. Additionally, Snowflake Intelligence has been observed to be undergoing a positive adoption process in its early stages.

Ader's optimistic view is supported by Snowflake Inc.'s (NYSE:SNOW) aim to lead in enterprise data management, and the company’s investments in areas like customizable artificial intelligence (AI) agents appear reasonable in this context.

Another positive development was the announcement of a partnership between Snowflake and SAP SE (NYSE:SAP) on November 4. This partnership aims to help businesses integrate and utilize their data more effectively. This collaboration is expected to strengthen organizations' data management through the integration of Snowflake's AI Data Cloud with SAP's Business Data Cloud (BDC) platform.

Christian Kleinerman, Snowflake's Vice President of Product, believes this collaboration will accelerate organizations' pace of innovation. Kleinerman stated, "By tightly integrating SAP and Snowflake, we enable businesses to seamlessly combine their critical business data with SAP’s rich context, empowering them to leverage Snowflake's capabilities for AI application and data agent development."

Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform that helps organizations store, manage, and share their data across multiple public clouds. Its architecture allows customers to scale their workloads as needed by separating compute and storage.

While recognizing SNOW’s potential as an investment, we believe that some artificial intelligence stocks offer higher potential returns and carry less downside risk. If you are looking for an undervalued AI stock that could significantly benefit from Trump-era tariffs and the onshoring trend, check out our free report on the best short-term AI stock.