Analyst Explains Why She’s Buying Snowflake Inc (SNOW) – ‘It Was Just Too Tempting’

We recently published 10 Stock News You Should Pay Attention To. Snowflake Inc. (NYSE:SNOW) is one of the stocks to watch in September.

Stephanie Link, CIO at Hightower, explained in a recent program on CNBC why she loaded up on Snowflake. The analyst cited Snowflake’s earnings growth and momentum due to AI and data centers as her reason to be bullish on the stock.

“This company is growing earnings at 94%. They’re growing product revenue growth at 32%. Operating margins just rose 610 basis points. I just think the company is in the beginning stages in terms of collecting data and having the size and the scale, and they’re going to continue to gain momentum as we’re all talking about AI and data centers and all that stuff. To me, a 5% drop on something that I think was kind of silly, after such a great quarter, Frank, it was just too tempting.”

Photo by Chris Liverani on Unsplash

Burke Wealth Management stated the following regarding Snowflake Inc. (NYSE:SNOW) in its second quarter 2025 investor letter:

“Snowflake Inc. (NYSE:SNOW): Shares of Snowflake were up 53% during the second quarter and have almost doubled off of their September lows. 2024 was a transition year at Snowflake as Sridhar Ramaswamy took over as CEO and the company materially accelerated its AI related product pipeline. As we work our way through 2025, Snowflake’s AI strategy is beginning to come into focus and to put it mildly, the opportunity is intriguing. Historically, Snowflake has given customers the ability to query and analyze company data, both structured and unstructured, across all public clouds in a secure, user-friendly manner. As we move into the AI age, Snowflake’s ambition is to allow this analysis to take place in real-time, often through the use of AI agents whether it be through Snowflake’s own applications or secure third-party applications. Snowflake’s position right next to the customer’s data offers protection against disintermediation from third-party data analytics applications. Instead, this work will be done by Snowflake’s internal applications or by third-party applications that connect securely to the data via the Snowflake platform. This is an advantaged position within an enterprise. Data analytics is a rapidly evolving market. Add into this Snowflake’s consumption based pricing model that can pick up changes in demand signals, real or transitory, on a quarter by quarter basis and it is no wonder that this is a volatile stock. That said, as Snowflake’s AI strategy plays out in the years to come, we think the upside in the shares make what can sometimes be a wild ride in the share price one worth taking.”

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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Disclosure: None. This article is originally published at Insider Monkey.