This Magnificent Artificial Intelligence (AI) Stock Has Jumped 47% in 3 Months, and It Can Soar Even Higher

Core Insights - Snowflake's stock has increased by 47% over the past three months due to a recovery in tech stocks, which had previously faced challenges from tariffs and geopolitical issues [1] - The company's growth profile is improving, driven by its AI-focused data cloud tools, which allow customers to store, consolidate, and analyze data effectively [2][3] Growth Opportunities - Snowflake's AI-specific business model is expected to drive significant long-term growth [3] - The introduction of the Cortex platform has enabled customers to access large language models (LLMs) for building custom applications, enhancing Snowflake's AI capabilities [5] Customer Base and Retention - Snowflake had approximately 9,500 customers at the end of fiscal 2024, providing a solid base for cross-selling AI solutions [6] - The company reported a 124% net revenue retention rate in Q1 of fiscal 2026, indicating that existing customers are increasing their usage of Snowflake's services [7] Customer Growth - Snowflake's customer base grew by 19% year-over-year to nearly 11,600, with 5,200 customers utilizing its AI and machine learning solutions [8] Market Potential - The company aims to capture a larger share of its projected $342 billion end-market opportunity by 2028 through ongoing AI feature launches and acquisitions [9] - Snowflake's product revenue increased by 26% year-over-year, while its remaining performance obligations (RPO) grew by 34% to $6.7 billion, indicating a strong demand for its services [10] Future Outlook - An acceleration in revenue growth is anticipated, which should positively impact the company's bottom line [11] - The improved earnings power and large addressable market position Snowflake for continued growth, making it an attractive option for growth-oriented investors [13]