Analysts Reaffirm Bullish View on Snowflake Inc.'s (SNOW) AI Strategy

Snowflake Inc. (NYSE:SNOW) is among the best machine learning stocks to buy according to analysts. According to a February 2 report from The Fly, analysts from RBC Capital were ‘positive’ on Snowflake’s $200 million partnership deal it signed with OpenAI on February 2. Under the deal, OpenAI’s models will be integrated into Snowflake’s Cortex AI offerings, along with a joint go-to-market strategy. RBC rates the stock as Outperform with a $300 price target.

As per RBC Capital, this collaboration will enable joint enterprise customers to deploy context-aware AI applications directly on Snowflake’s data platform. They also argue that this partnership builds on Snowflake’s reported $100 million in AI-related annual recurring revenue and follows a similar collaboration deal with Anthropic, which strengthens Snowflake’s position as a central data layer for enterprise AI adoption.

On the same day, Raymond James also reaffirmed an Outperform rating on Snowflake Inc. (NYSE:SNOW) following the deal announcement. The firm believes that organizations providing large language models will need such deals to expand their footprint in the enterprise space.

On the deal, Snowflake CEO Sridhar Ramaswamy stated:

Customers can now harness all their enterprise knowledge in Snowflake together with the world-class intelligence of OpenAI models, enabling them to build AI agents that are powerful, responsible, and trustworthy. Together, we’re setting a new standard for AI innovation, helping businesses transform with confidence, while maintaining strong security and compliance standards.

Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform that helps organisations store, manage, and share data across multiple public clouds.  Its platform, called the Snowflake Data Cloud, supports diverse workloads including data engineering, analytics, machine learning, and secure collaboration.