10 Trending AI Stocks on Wall Street

6. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 100

Snowflake Inc. (NYSE:SNOW) is one of the 10 Trending AI Stocks on Wall Street. BofA Securities analyst Brad Sills upgraded the stock from Neutral to Buy with a price target of $240.00 (from $220.00). The firm has upgraded the stock based on improving demand trends and long-term growth prospects in AI and data services.

BofA cited several data sources that have pointed to momentum in Snowflake’s data warehouse and emerging Cortex AI and Snowpark developer businesses.

“We upgrade Snowflake to Buy from Neutral, and raise our estimates, and PO to $240 (53x CY26FCF/1.9x growth adj, from $220, 48x/1.7x), given three distinct proprietary data sources which point to momentum in Snowflake’s data warehouse and emerging Cortex AI and Snowpark developer businesses. While the stock has had a good run (+47% y/y), the shares are trading at a reasonable 1.5x CY26E FCF multiple adjusted for growth versus the large cap peer group at 1.6x.”

The firm anticipates Q2 product revenue of about $1.06 billion driven by stronger web activity trends. Channel checks further point to an improving backdrop, with customers progressively turning to Snowflake as a critical part of the AI technology stack.

Snowflake does face competition and risks stemming from its consumption-based revenue model, but the growing $155 billion addressable AI software market highlights a key opportunity for the company.

“While we believe that Q2 earnings (8/27) will be a catalyst for the stock given multiple positive data points outlined below, our call is for outperformance over the long term given incremental traction with products addressing a significant larger addressable AI market for software of $155bn.”

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