Two artificial intelligence (AI) stocks are gaining traction on Wall Street, surpassing the once-dominant Nvidia in the eyes of investors. The transformative potential of AI has caught the attention of many, including JPMorgan Chase CEO Jamie Dimon, who believes it could be as groundbreaking as electricity or the internet.
While Nvidia has been a popular choice for AI investment due to its high market share, other companies like CrowdStrike and Snowflake are now seen as having more upside potential by Wall Street analysts. Here’s why investors are turning their attention to these two AI stocks:
CrowdStrike, a cybersecurity specialist, recently reported impressive financial results with a 33% increase in sales and more than doubled non-GAAP net income. The company boasts a strong market presence in endpoint security and other key segments, with a gross retention rate of 98%. Analysts at Morgan Stanley have highlighted CrowdStrike’s robust sales growth guidance and its leadership in effective cybersecurity software, making it a top pick for investors.
On the other hand, Snowflake, a data analytics specialist, also posted solid financial results, with a 32% increase in revenue and a significant rise in customer spending. Despite a slight dip in share price following a guidance miss and CEO retirement announcement, Snowflake remains a top player in cloud data warehousing. The company’s ability to support workloads across major cloud platforms and its recent launch of Cortex for AI applications position it for future growth.
Wall Street analysts project strong sales growth for both CrowdStrike and Snowflake, with consensus estimates indicating reasonable valuations for these growth stocks. While CrowdStrike excels in cybersecurity AI models, Snowflake stands out in data analytics innovation. Investors are advised to consider these AI stocks for their portfolios as they offer promising growth prospects in the evolving technology landscape.
