Nvidia may dominate headlines, but Goldman Sachs analysts point to significant upside in other AI stocks worth your attention
Nvidia continues to play a pivotal role in shaping market movements—a theme that Wall Street has reiterated over the past several months.
In fact, its influence might rival that of the Federal Reserve’s monetary policy decisions or even geopolitical developments.
While the AI chip giant has undoubtedly been the centerpiece of recent trading sessions, largely due to heightened anticipation of its fiscal Q3 2025 earnings report, there are other stocks attracting significant investor interest.
Notably, Nvidia’s results this time failed to ignite the expected rally, delivering a surprising outcome for traders.
That said, in addition to NVDA, there is another company that yesterday, in particular, made headlines, capturing both investor attention and historical significance: it is Snowflake, a rising star in the AI-driven business landscape.
Snowflake Surges Over 30% on Strong Guidance
Snowflake, the cloud-based data platform specializing in optimizing AI data usage, delivered its best session ever on Wall Street, with shares skyrocketing by more than 30%.
The rally came on the heels of a stellar Q3 2024 earnings announcement last Wednesday evening, which included an upward revision of its full-year revenue outlook to $3.43 billion, up from the prior estimate of $3.36 billion.
This guidance represents an impressive 29% year-over-year revenue growth.
In addition to robust financial guidance, Snowflake announced a strategic collaboration with Anthropic, an AI startup backed by Amazon.
Further fueling optimism, CEO Sridhar Ramaswamy revealed the company’s potential plans to initiate projects with the U.S. federal government, broadening its scope of operations and market reach.
Goldman Sachs Sees a 70% Upside for Snowflake Shares
The flurry of positive developments did not go unnoticed. Goldman Sachs analysts reaffirmed their bullish stance on Snowflake, maintaining a "Buy" rating and a price target of $220 per share.
This target implies a potential upside of more than 70% from the $129.12 closing price prior to the earnings announcement.
Goldman analyst Kash Rangan highlighted Snowflake’s "strong competitive positioning", emphasizing the company’s ability to capitalize on the "generational shift of data to the cloud" and related trends, including big data, artificial intelligence (AI), machine learning (ML), and data-sharing technologies. Rangan sees these as drivers of sustainable growth in the near term.
JP Morgan also weighed in, raising its price target for Snowflake to $185, signaling an upside potential of over 47%.
Snowflake: Wall Street Looks Beyond the Numbers
While Snowflake reported a Q3 net loss of $324.3 million (98 cents per share), compared to a loss of $214.3 million (65 cents per share) in the same period last year, Wall Street focused on brighter metrics. On an adjusted basis, EPS came in at 20 cents, beating the consensus estimate of 15 cents.
Revenue similarly outperformed expectations, growing 28% year-over-year to $942 million, surpassing analyst forecasts of $897 million.
Meanwhile, Nvidia’s stock, after an initial dip following its earnings announcement, recovered to close the session up 0.53% at $146.67. The broader market continues to monitor Nvidia as a bellwether for the tech sector, but Snowflake’s dramatic performance underscores the expanding opportunities in the AI and cloud ecosystem.
Original article published on Money.it Italy 2024-11-22 09:51:30. Original title: Altro che Nvidia. Goldman Sachs vede queste azioni AI volare del 70%
