10 AI Stocks Analysts Are Tracking Closely

4. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 100

Snowflake Inc. (NYSE:SNOW) is one of the 10 AI Stocks Analysts Are Tracking Closely. On August 21, TD Cowen analyst J. Derrick Wood reiterated a Buy rating on the stock with a $240.00 price target. The rating affirmation comes ahead of the company’s second-quarter earnings report due on August 27.

The firm has highlighted “positive checks” in its analysis, with core consumption stability and sustained traction with Data Engineering workloads for Snowflake. Moreover, the firm noted that Snowflake’s unified data platform positioning is helping capture more AI-related market share.

“Positive Checks; Unified Data Platform & GTM Shifts Resonating; SNOW reports 2Q on 8/27. Partner checks were bullish, incl. core consumption stability, continued traction w/ Data Eng workloads, emerging momentum w/ Cortex AI, & positive changes from new enterprise sales motions. We think its unified data platform positioning is helping garner more AI-related wallet share. Expect another solid beat & raise alongside growth re-acceleration vs. 1Q.”

Overall, TD Cowen expects a solid upside quarter for the company, with continued execution anticipated to help drive premium valuations.

“Overall, checks point to strong spending conditions for SNOW, w/ strength in core SQL workloads, emerging tailwinds from AI workloads & positive changes in GTM motions. We expect another solid upside qtr (vs. ~4% TTM avg on a $ basis) relative to its 2Q guide of 25% growth, which would represent notable growth acceleration vs. 26% in 1Q. Continued execution should help drive premium valuations (currently at ~46x EV/CY26E FCF) against a Rule of 50+ framework. Reiterate Buy.”

Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.