Snowflake (SNOW) dey spark investor interest again afta dem announce say dem go work wit NVIDIA to make machine learning workflows dey easier. Dis move, plus di positive vibes wey dey build up for dia third quarter earnings, don make investors dey believe in di company's AI strategy.
Afta di small drop wey happen last month, Snowflake share price don dey go up again, because people dey expect good earnings and dem dey excited about di NVIDIA integration. Wit di share price wey don go up by almost 58% dis year and di one-year return wey pass 42%, people dey look at di short-term and long-term growth of di company.
If you dey wonder wetin else dey happen for tech and AI apart from Snowflake, na di right time to find out.
Analysts dey feel positive and dem dey expect good things from Snowflake next earnings call. Di question now be say, di way di price dey go up, space still dey for am to go higher? Snowflake recent momentum be new buying opportunity, or di market don price in di future growth already?
Dem dey see am say Snowflake dey undervalued, meaning say di market dey expect am to do betta dan e dey do now. Dis belief dey based on di expectation say dem go get growth and major changes go happen for di industry.
Plenty companies dey adopt AI and advanced analytics, and dis dey increase di demand for Snowflake platform. Almost 50% of new customers dey mention AI as di reason why dem dey use Snowflake, and over 25% of all di use cases wey dem dey deploy dey use AI. Dis go make dem get more money in di future as companies dey budget more for AI.
Some investors dey feel say di stock too expensive. Di company still dey lose money according to GAAP standards and dem get high execution risk. But AI dey quickly become di company biggest source of growth. Snowflake net revenue retention rate (NRR) of 125% na one of di reasons why di stock dey trade at a premium. Di stock still be buy for investors wey dey ready to take risk for growth.