All eyes were open Nvidia On August 27, with the expectation of Giant’s last three -month report on August 27, it seems that it was not affected by the results of the investors’ chip designer.
Nvidia exceeded Wall Street’s expectations and provided a healthy increase in both income and earnings, Concerns about the company’s job in China Weighed in stock. As a result, the stock was almost flat the next day. However, another Artificial Intelligence (AI) The company and stock that published the results on the same day increased in an impressive way. In fact, this stock left the NVIDIA stock significantly behind last year.
Let us have the potential of this name and why even further rise.
Image Source: Getty Images
Snowflake(NYSE: Snow) It runs a cloud -based data platform where customers can safely store data for processing and analysis. It is available on leading cloud computing platforms such as data cloud platform. Amazon Web Services, Microsoft Azure and Google Cloud. In addition, Snowflake also operates a market place where customers can access applications and data shared by other customers.
The company offers AI tools to its customers to get more than its data, and this strategy pays beautifully in the last quarters. Therefore, it was not surprising to see that Wall Street exceeded the expectations of Snowflake’s second quarter of the Mali 2026 (for three months ending on July 31).
The income of the company increased by 32% in the last quarter to $ 1.1 billion, which is at three points at a speed of three points compared to the previous year. The rapid development of Snowflake’s AI solutions plays an important role in applying this acceleration. The company’s customer base increased by 19% annually in the previous quarter, and more than half of customer accounts used Snowflake AI solutions.
The company’s AI platform helps customers to create AI representatives to analyze documents, improve AI models and applications and to access AI representatives and access their data to their data. Snowflake management clearly stated that AI’s customer base is the reason for the swelling of the customer base in the latest earning conference. In CEO Sridhar Ramaswamy’s words, “Today, AI is a main reason for customers to choose a snowflake, affect approximately 50% of the new logos earned in the quarter. And when they are on our platform, AI becomes more than 6,100 calculations every week and become a cornerstone of their strategies.”
Even better, AI helps Snowflake to spend more powerful than the existing customer base. This is seen as a metric that compares the expenditures of its customers in a period with the expenditures of the same customer cohort in the previous year, from the company’s 125% net revenue retention rate in the last quarter. More than 100 % reading means that existing customers have expanded their use of Snowflake’s use or purchases more than offers.
The growth of Snowflake’s customer base and the expansion in expenditures made by existing customers led to an impressive growth of six percent of the non -GAAP (corrected) working margin. As a result, Snowflake’s corrected earnings doubled compared to the previous year. Moreover, the company shows that the firm income pipeline and the large addressable market can continue to deal more.
Snowflake shares increased by 108% last year, in the same period, in front of the 40% earnings by Nvidia. When we look forward, Snowflake has more space to grow, considering that the remaining performance obligations (RPO) increased by 33% in the previous quarter. Not surprisingly, the company has now increased the financial 2026 product revenue estimation to $ 4.4 billion from previous estimates of $ 4.33 billion.
Snowflake can increase its prediction as the year progresses, as the AI proliferation is sitting on a higher income opportunity in the future. The company expects the total addressable market (full) to be twice as much as 355 billion dollars in 2029 in the next five years, which suggests to enjoy the company’s great growth for years.
Another worth noting is that Snowflake’s earnings increase faster than 54% growth reported by NVIDIA in the last quarter. Analysts expect NVIDIA to leave behind earnings in the future.
Therefore, don’t be surprised to see that Snowflake stock makes more profit for investors in the long run. And when the stock transactions are compared with NVIDIA’s 30 price / sales rate, growth investors may consider buying snowflakes even after healthy earnings last year.
Think about this before you buy a snowflake in stock:
. Motley Fool Stock Advisor Analyst team determined what they believed Top 10 stocks For investors to buy now… And snowflake was not one of them. 10 shares that make the cut can produce monster returns in the coming years.
When think Netflix It made this list on December 17, 2004 … If you invested $ 1,000 during our advice, You have $ 651,599!* Or when Nvidia It made this list on April 15, 2005 … If you invested $ 1,000 during our advice, You have $ 1,067,639!*
Now worth drawing attention Stock consultant Total average return 1,049A performance that breaks the market compared to 185% for -S & P 500. Don’t miss the last 10 lists, it can be used when you join Stock consultant.
Hard chauhan None of the mentioned stocks have a position. Motley Fool, Amazon, Microsoft, Nvidia and Snowflake settles and recommends. Motley Fool recommends the following options: Long January 2026 Calls of $ 395 in Microsoft and short January 2026 Calls $ 405 in Microsoft. Motley Fool’s Explanation policy.
