6. Snowflake (NYSE:SNOW)
Altimeter Capital’s Stake: $444,775,213
Snowflake (NYSE:SNOW) sells a cloud-based data platform that lets companies store, process, and analyze massive amounts of data. Unlike other SaaS companies, Snowflake uses a consumption-based model, which means meaning customers pay based on how much data they use, query, and compute.
The stock is down roughly 44% this year, as investors worry that AI could disrupt traditional SaaS models and reduce software spending. But Snowflake (NYSE:SNOW) bulls believe these fears are overblown.
Their case is simple: Snowflake (NYSE:SNOW) isn’t really a SaaS company in the traditional sense. Its usage-based model actually benefits from AI, not suffers from it. As companies adopt AI, they generate more data, run more queries, and require more computing power. All of this directly increases Snowflake’s revenue. The company’s backlog (remaining performance obligations) rose 40% year over year in Q4.
Snowflake (NYSE:SNOW)’s revenue rose 30% year over year in Q4, and it expects high-20% growth going forward.
BofA recently highlighted Snowflake’s (NYSE:SNOW) accelerating growth and said the company is benefiting from both its core data business and early traction in AI tools. The bank noted Snowflake’s product revenue growth driven by stronger core demand and AI products like Intelligence and Cortex AI. It also pointed out that Snowflake (NYSE:SNOW)’s Intelligence tool is now used in 2,500 accounts, doubling quarter-over-quarter, signaling rising adoption.
Aristotle Growth Equity Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its fourth quarter 2025 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a leading cloud-based data platform that empowers organizations to consolidate, manage, and analyze their data securely and efficiently. Through its AI Data Cloud, Snowflake enables customers to eliminate data silos, apply AI and analytics, build data-driven applications, and share data across organizations, all while leveraging a flexible, consumption-based pricing model. With a scalable architecture spanning compute, storage, and cloud services, Snowflake supports diverse industry specific solutions and serves a global customer base, including many of the world’s largest enterprises.
Snowflake stands out as a leading data cloud platform, capitalizing on the shift of enterprise analytics to the cloud and serving a vast addressable market. Its cloud-neutral, multi-cloud approach and deepened partnerships, especially with Microsoft Azure, drive strong market adoption and insulate growth. The company’s consumption-based pricing model supports impressive retention and expansion, while also providing the potential for upsell traction among an expanding roster of large enterprise clients. With rapid growth in generative AI and new workloads, Snowflake is capturing substantial AI-related revenue and customer interest. We believe its robust financial profile, featuring strong margins and a clear path to profitable growth at scale, positions Snowflake as a compelling long-term investment opportunity. It trades at a premium valuation compared to the broader group of infrastructure peers, but we view this as justified by the multi-year outlook and opportunity for revenue growth and margin expansion.”
While we acknowledge the potential of SNOW to grow, 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 AI stock that is more promising than SNOW and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Stocks to Buy Now According to AI Bull Brad Gerstner.
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