Snowflake, a cloud-based data-warehousing company, has partnered with Nvidia to offer generative-AI technology to its customers. This collaboration has made Wall Street analysts predict a potential growth driver for Snowflake, and it has triggered a positive response in the stock market. Although Snowflake stocks (ticker: SNOW) have gained only 20% this year in comparison to other tech giants like Meta Platforms (META) and Microsoft (MSFT), analysts are optimistic that this deal will help boost the company’s stock price.
AI is revolutionizing the tech industry, and investors believe that it has the potential to drive growth in the future. The Nasdaq Composite has risen 28% this year, and tech companies that offer exposure to AI like Meta Platforms and Microsoft have seen gains of 138% and 38%, respectively. Nvidia stock, a company known for its new AI supercomputer, has soared a whopping 177%.
This partnership between Snowflake and Nvidia is expected to be beneficial for both parties involved since it combines Snowflake’s expertise in cloud-based data-warehousing with Nvidia’s advanced AI technology.
Snowflake and Nvidia Partnership in Gen AI Development
The partnership between Snowflake and Nvidia is expected to benefit businesses and organizations in their gen AI efforts/development. Snowflake customers can now use Nvidia’s AI training models to train their own proprietary data for company or industry-specific gen AI bots and features. This enables users to keep their data safe and maintain control.
Analysts are bullish on the partnership, including Evercore ISI analyst Kirk Materne. He believes that this relationship helps accelerate Snowflake’s push into AI and allows customers to develop directly on the Data Cloud. Materne rates Snowflake stock at Outperform with a $190 price target. Evercore analyst C.J. Muse rates Nvidia stock at Outperform with a $550 price target.
Overall, this partnership is expected to benefit both companies, with analysts predicting more upside potential for Snowflake as it ventures into the gen AI arena. As of Tuesday, Snowflake stock has risen 1.9% to $173.23.