We just covered the 10 Best Stocks to Buy According to AI Bull Brad Gerstner. Snowflake (NYSE:SNOW) ranks #6 (see the 5 Best Stocks to Buy According to AI Bull Brad Gerstner).
Altimeter Capital’s Stake: $444,775,213
Snowflake (NYSE:SNOW) sells a cloud-based data platform that lets companies store, process, and analyze massive amounts of data. Unlike other SaaS companies, Snowflake uses a consumption-based model, which means meaning customers pay based on how much data they use, query, and compute.
The stock is down roughly 44% this year, as investors worry that AI could disrupt traditional SaaS models and reduce software spending. But Snowflake (NYSE:SNOW) bulls believe these fears are overblown.
Their case is simple: Snowflake (NYSE:SNOW) isn’t really a SaaS company in the traditional sense. Its usage-based model actually benefits from AI, not suffers from it. As companies adopt AI, they generate more data, run more queries, and require more computing power. All of this directly increases Snowflake’s revenue. The company’s backlog (remaining performance obligations) rose 40% year over year in Q4.
BofA recently highlighted Snowflake’s (NYSE:SNOW) accelerating growth and said the company is benefiting from both its core data business and early traction in AI tools. The bank noted Snowflake’s product revenue growth driven by stronger core demand and AI products like Intelligence and Cortex AI. It also pointed out that Snowflake (NYSE:SNOW)’s Intelligence tool is now used in 2,500 accounts, doubling quarter-over-quarter, signaling rising adoption.
Aristotle Growth Equity Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its fourth quarter 2025 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a leading cloud-based data platform that empowers organizations to consolidate, manage, and analyze their data securely and efficiently. We believe its robust financial profile, featuring strong margins and a clear path to profitable growth at scale, positions Snowflake as a….” (Click Here To Read The Letter in Detail)
While we acknowledge the risk and potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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