Prediction: This Artificial Intelligence (AI) Stock Could Beat Palantir in 2026. Now Is a Great Time to Buy It Hand Over Fist

Core Viewpoint - Snowflake is positioned as a strong alternative to Palantir in the AI software market, with potential for significant growth in 2026 due to its competitive pricing and expanding customer base [3][14]. Company Overview - Snowflake operates a cloud-based data warehouse platform that allows clients to store, analyze, and monetize their data, enhanced by AI tools [5][7]. - The company has introduced a variety of AI services, including serverless GPUs and the Cortex platform for building AI applications [7]. Customer Growth and Engagement - As of the third quarter of fiscal 2026, Snowflake has over 12,600 customers, marking a 20% increase year-over-year [9]. - More than 7,300 customers utilize Snowflake's AI features weekly, with 1,200 actively building AI agents on the platform [8]. Financial Performance - Snowflake reported a 29% increase in product revenue to $1.16 billion in the fiscal third quarter, with adjusted earnings rising 75% year-over-year to $0.35 per share [11]. - The company expects a 28% increase in product revenue for fiscal 2026, projecting $4.45 billion, up from previous guidance [12]. Market Position and Valuation - Snowflake's market cap is currently $75 billion, with a share price of $220.46, reflecting a 44% gain this year [6][13]. - Analysts predict Snowflake's revenue will reach $5.7 billion in 2026, with a potential market cap increase of 50% if it trades at 20 times sales [18]. - In contrast, Palantir's revenue is expected to grow by 40% to $6.2 billion in 2026, but its higher valuation may limit stock upside [16][18].