AI Bull Brad Gerstner Likes Snowflake (SNOW) Despite ‘SaaSpocalypse’ Fears

Altimeter Capital’s Stake: $444,775,213

Snowflake (NYSE:SNOW) sells a cloud-based information level that lets companies store, process, and analyse monolithic amounts of data. Unlike different SaaS companies, Snowflake uses a consumption-based model, which means meaning customers wage based connected however overmuch information they use, query, and compute.

The banal is down astir 44% this year, arsenic investors interest that AI could disrupt accepted SaaS models and trim bundle spending. But Snowflake (NYSE:SNOW) bulls judge these fears are overblown.

Their lawsuit is simple: Snowflake (NYSE:SNOW) isn’t truly a SaaS institution successful the accepted sense. Its usage-based exemplary really benefits from AI, not suffers from it. As companies follow AI, they make much data, tally much queries, and necessitate much computing power. All of this straight increases Snowflake’s revenue. The company’s backlog (remaining show obligations) roseate 40% twelvemonth implicit twelvemonth successful Q4.

BofA precocious highlighted Snowflake’s (NYSE:SNOW) accelerating maturation and said the institution is benefiting from some its halfway information concern and aboriginal traction successful AI tools. The slope noted Snowflake’s merchandise gross maturation driven by stronger halfway request and AI products similar Intelligence and Cortex AI. It besides pointed retired that Snowflake (NYSE:SNOW)’s Intelligence instrumentality is present utilized successful 2,500 accounts, doubling quarter-over-quarter, signaling rising adoption.

Aristotle Growth Equity Fund stated the pursuing regarding Snowflake Inc. (NYSE:SNOW) successful its fourth 4th 2025 capitalist letter:

“Snowflake Inc. (NYSE:SNOW) is simply a starring cloud-based information level that empowers organizations to consolidate, manage, and analyse their information securely and efficiently. We judge its robust fiscal profile, featuring beardown margins and a wide way to profitable maturation astatine scale, positions Snowflake arsenic a...." (Click Here To Read The Letter successful Detail)

While we admit the imaginable of SNOW arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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