1 Warren Buffett-Owned Stock With 36% Upside This Year

Core Viewpoint - Warren Buffett's Berkshire Hathaway has invested in Snowflake Inc., highlighting the company's potential in the AI sector despite recent stock price declines [1][2]. Company Performance - Snowflake generated $2.67 billion in product revenue for fiscal year 2024, marking a 30% year-over-year increase, while free cash flow rose 56% to $810 million [1]. - The stock is currently trading at $157, which is 33% below its 52-week high and 20% down year-to-date [2]. Market Position and Strategy - Snowflake is strategically positioned in the generative AI space, recently launching an open-source generative AI model called Arctic, which aims to set a new standard for AI technology [3]. - The company is planning a data cloud summit featuring Nvidia's CEO, which is expected to enhance its visibility and association with AI innovation [4]. Analyst Sentiment - Analysts have set an average price target of $211 for Snowflake, indicating a potential upside of approximately 36% based on higher estimates reaching $260 [1][5]. - Snowflake's multiples are now more reasonable compared to the peak valuations seen in 2021, and it continues to deliver strong growth rates in the software sector [5].