10 Must-Watch AI Stocks on Wall Street

7. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 102

Snowflake Inc. (NYSE:SNOW) is one of the 10 Must-Watch AI Stocks on Wall Street. On January 12, Barclays analyst Raimo Lenschow downgraded the stock from Overweight to Equalweight with a price target of $250.00 (from $290.00). Firm analysts are constructive on the stock owing to strong fundamentals, but see limited upside after strong run.

While Snowflake has been a “best-in-class-software” stock, the firm believes that much of the strength is now priced into valuation. The AI stock has had one of the strongest top-line growth rates in the firm’s coverage universe and above-average free cash flow margins at scale.

For context, this rating downgrade marks Barclays’ third rating change for SNOW over the past three years. Analysts noted how execution has improved for the company under CEO Sridhar Ramaswamy, helping boost momentum for the stock.

“Importantly, for context, this move marks our third rating change for SNOW over the last three years, following our upgrade of the company to Overweight (from EW) in our 2025 Outlook (see 2025 Outlook: Recovery And AI To Drive Software Outperformance, 1/10/25) and our downgrade of the company to Equal Weight (from OW) with our 2024 Outlook (see U.S. Software: 2024 Outlook: Putting Both AI and SMID Cap Hype to the Test, 1/12/24). During this time last year, we saw improved execution for Snowflake on both the product and GTM fronts under its new CEO Sridhar Ramaswamy that was driving better momentum at the company that underpinned our upgrade.”

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