Investment strategist says this AI stock is undervalued and ‘everyone will chase’ it
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As companies compete for dominance in the booming artificial intelligence (AI) sector, investment strategist Shay Boloor has highlighted what he believes is an undervalued stock in this space poised to catch investors’ attention. To this end, the expert pointed out that American cloud-based data storage firm Snowflake (NYSE: SNOW) is the next AI stock to watch, citing the equity’s underlying fundamentals, Boloor said in an X post on February 16. Boloor sees SNOW as the “engine for AI-driven data liquidity,” a critical component in AI models’ seamless training and monetization. “SNOW is the undervalued AI stock everyone will chase. I believe Snowflake is the next AI name set for a massive re-rating as the market recognizes its role as the engine for AI-driven data liquidity — powering seamless model training & monetization,” he said. Comparing SNOW stock with counterparts The strategist observed that while its AI counterparts, like Palantir (NASDAQ: PLTR) and Cloudflare (NYSE: NET), have already experienced significant stock growth, Snowflake is still flying under the radar. He noted that Snowflake is trading at just 42 times free cash flow (FCF), which Boloor believes doesn’t fully reflect the company’s growth potential. Palantir, often referred to as the “Operating System of AI,” boasts a 32% topline growth and 40% FCF margins but is trading at a hefty 181 times FCF. Similarly, Cloudflare dubbed the “Controller of the New Internet,” is growing at 26% topline with 12% FCF margins, yet its stock commands a 257 times FCF multiple. Boloor highlighted Snowflake’s 23% topline growth and 26% FCF margins, noting that its projected growth could reach 30% by year-end, positioning the stock for a re-rating. He also emphasized that expanding margins, expected to hit 28%, further bolster its status as a ‘Stage 2 AI winner’. This outlook adds to the recent growing…
Filed under: News - @ February 17, 2025 5:20 pm