13 Best Cloud Computing Stocks to Invest in Now

Page 7 of 13

7. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 94

Snowflake Inc. (NYSE:SNOW) is one of the Best Cloud Computing Stocks to Invest in Now. On July 17, Stephens initiated coverage of the company’s stock with an “Overweight” rating and a price objective of $261, as reported by The Fly. The firm sees AI as a large growth acceleration opportunity for Snowflake Inc. (NYSE:SNOW). The company delivered strong Q1 2026, with product revenue coming at $997 million, up 26% YoY, and remaining performance obligations totalling $6.7 billion.

Snowflake Inc. (NYSE:SNOW) continues to see healthy growth from the new product offerings. Both Snowpark and Dynamic Tables surpassed expectations in Q1 2026. Other areas of strength were the technology and retail sectors. Overall, Q1 2026 was a healthy one for bookings. Snowflake Inc. (NYSE:SNOW) added 451 net new customers, reflecting a growth of 19% YoY.

The company expects Q2 2026 product revenue of between $1.035 billion – $1.04 billion, demonstrating 25% YoY growth. Snowflake Inc. (NYSE:SNOW) anticipates a Q2 2026 non-GAAP operating margin of 8%. For FY 2026, it increased its revenue guidance to $4.325 billion, reflecting 25% YoY growth.

Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Among our top Q2 contributors were Spotify, Snowflake Inc. (NYSE:SNOW) and Roblox. Snowflake is a leading cloud data warehouse and analytics platform benefiting from the ongoing shift away from on-premise infrastructure. Its cloud-native architecture enables greater scalability, faster performance and improved efficiency for businesses managing large data sets. We see upside as the new management team drives new product launches to improve its competitiveness and position the company to take advantage of growing demand for AI tools. Progress was on display in its earnings results, including 26% revenue growth, 124% net revenue retention and 606 customers with trailing 12-month product revenue exceeding $1 million. Early in the quarter, we saw the post-Liberation Day market correction as an opportunity to increase our position.”

Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for various organizations.

Page 7 of 13