Wednesday, September 20

Snowflake: Supercharging the AI Revolution

A new thread is emerging in our coverage universe around adapting our strategy to a specific class of company. We've been focusing on long-term trends like green energy, AI, reshoring, defense, and a few others, but there's one more layer we'd like to add to that. 

What we see right now is a very fickle market that will pull capital out of big, splashier players set to be big beneficiaries of certain market forces. While last year was a great time to get into solar stocks, expectations are now weighing on these brands and hurting their growth prospects. 

But, a layer down from "growthier companies' are the enablers of these long-term trends. It's the service providers who stand to win no matter who turns out to be dominant in any particular industry. That's what drove our coverage of folks like Emerson Electric and Bloom Energy. These players have a lot of growth to give and not nearly as much pressure to perform riding on their shoulders. 

With our coverage well-sorted in Green Energy, let's turn to AI and focus on players who are doing great work to enable all the AI growth we've seen in the past few weeks. 

Chief among the companies helping bolster AI gains is Snowflake Inc ($SNOW), a company we have only recently initiated coverage on. 

Snowflake has made decent progress toward the price target we set back in Q2, but their latest earnings call has provided some solid shifts that "force" us to increase our holdings. 

In short, Snowflake has hit an inflection point in growth that we see as a moment of acceleration. More importantly, the company is taking on the right mix of customers to ensure they are about to get a solid boost in their margins. 

So let's explore how Snowflake is changing the game and how they are going to help bring about solid AI gains for their clients.👇

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