The Motley Foolยท2025-06-20 08:00Core Viewpoint - The article highlights the strong performance of artificial intelligence (AI) stocks, driven by significant investments in AI hardware and software, with overall spending on AI projected to reach $628 billion by 2028 [2]. Group 1: Twilio - Twilio's stock has increased by 115% over the past year, significantly outperforming the Nasdaq Composite's 11% gain [5]. - The stock is currently valued at 26 times forward earnings and 4 times sales, indicating an attractive buying opportunity [6]. - Twilio's customer engagement platform serves over 300,000 enterprises globally, with a 7% year-over-year increase in active customer accounts [7]. - The company offers various AI tools, including generative AI-powered assistants, enhancing customer service capabilities [8][9]. - Twilio's dollar-based net expansion rate increased by five percentage points in Q1 of fiscal 2025, leading to a raised full-year organic revenue growth guidance from 7.5% to 8% [10]. - Analysts expect a 24% increase in Twilio's earnings this year, with potential stock price growth to $186, representing a 59% increase from current levels [11][13]. Group 2: Snowflake - Snowflake's share prices have risen by 64% in the past year, with significant recent gains [14]. - The company's AI-focused data cloud tools are driving robust revenue growth, with nearly 45% of its 11,600 customers using AI tools weekly [16]. - Snowflake's customer count increased by 19% year-over-year in Q1 of fiscal 2026, contributing to a 34% year-over-year rise in remaining performance obligations (RPO) to $6.7 billion [17][18]. - The management has raised its fiscal 2026 revenue guidance, with earnings expected to increase by a third to $1.10 per share [19]. - Snowflake's total addressable market is projected to grow to $342 billion by 2028, indicating further growth potential [21].