5 Stocks Jumping On The Generative AI Wagon

In this article, we will be taking a look at 5 stocks jumping on the generative AI wagon. To read our detailed analysis of the developments taking place within the AI sector, you can go directly to read about the 10 Stocks Jumping On The Generative AI Wagon.

5. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 63

Snowflake Inc. (NYSE:SNOW) entered into a partnership with NVIDIA Corporation (NASDAQ:NVDA) this June, the aim of which is to make it easier to build generative AI applications by using stored unstructured data in the cloud and running it on NVIDIA Corporation’s (NASDAQ:NVDA) GPUs.

On June 30, Keith Weiss at Morgan Stanley reiterated an Overweight rating on Snowflake Inc. (NYSE:SNOW) shares while also maintaining a $215 price target on the stock.

We saw 63 hedge funds long Snowflake Inc. (NYSE:SNOW) in the first quarter, with a total stake value of $5 billion.

In its first-quarter 2023 investor letter, The Ithaka Group said the following about Snowflake Inc. (NYSE:SNOW):

“Snowflake Inc. (NYSE:SNOW) is a dominant player in the Data Warehousing market, offering customers the ability to break down data silos and derive value from rapidly growing data sets through Snowflake’s analytical database product, the Data Cloud. The company’s base business is benefitting from a number of secular tailwinds, the three most prevalent being: 1) data-driven decision making, 2) cloud adoption, and 3) the exponential growth of corporate data. The company’s visionary management team, headed by industry veteran Frank Slootman, plans to capture its fair share of this growth through: 1) executing on its land and expand model, 2) acquiring new customers, 3) growing internationally, and 4) expanding its nascent partner network. The stock’s negative contribution in the quarter was due to the timing of Ithaka’s purchase (mid-February) and its small portfolio weighting (100bps).”