10 Stocks That Will Collapse Because of AI

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6. Snowflake Inc. (NYSE:SNOW)

KeyBanc analyst Eric Heath cut the firm’s price target on Snowflake Inc. (NYSE:SNOW) from $235 to $200 while keeping an Overweight rating on April 15. According to the firm, its first-quarter checks with 36 IT and security channel partners showed mixed trends, as the environment remains challenging due to geopolitical uncertainty, higher component costs, and ongoing AI disruption.

On a more positive note, the percentage of companies beating or at least meeting EPS expectations rose to 88%, up from 81%. However, the broader outlook remains cautious. The expected global IT budget growth for 2026 was lowered to 2.5% from 5.3% in the previous quarter. In addition, U.S. federal demand for the second quarter and the full-year 2026 outlook weakened. KeyBanc highlighted that nearly 20% of partners are seeing a shift in spending away from traditional software toward AI-native solutions.

Earlier, on April 14, Evercore ISI analyst Kirk Materne also cut the firm’s price target on Snowflake Inc. (NYSE:SNOW) from $225 to $200 while maintaining an Outperform rating. These back-to-back price target cuts reflect cautious analyst sentiment, primarily driven by fears of AI disruption.

Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform that helps organizations store, manage, and share data across multiple public clouds. Its platform, called the Snowflake Data Cloud, supports diverse workloads including data engineering, analytics, machine learning, and secure collaboration.

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.

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