With the announcement of US President Donald Trump regarding a USD 500 billion investment in AI infrastructure through a new company, the AI stocks got a tremendous boost.
Being planned in partnership with Oracle, SoftBank and Open AI, called Stargate, it will be building the physical and virtual infrastructure to power the next generation of advancements in AI,
Two stocks in focus are :-
Snowflake Inc. (NYSE: SNOW)
Snowflake Inc. (NYSE: SNOW) reported strong performance in its third quarter of Fiscal 2025, with total revenue reaching $942.1 million, a 28% year-over-year growth. A significant portion of this came from product revenue, which hit $900.3 million, reflecting a 29% increase from the same period last year. The company's net revenue retention rate stood at 127%, which indicates strong customer satisfaction and expansion. Snowflake also continued to see growth in its customer base, with 542 customers generating over $1 million in trailing 12-month product revenue, marking a 25% year-over-year increase. The company’s global reach is further reflected in its 754 Forbes Global 2000 customers, which represents an 8% growth. Remaining performance obligations (RPO), a key indicator of future revenue, grew 55% year-over-year to $5.7 billion, signaling continued demand for Snowflake's services. The company’s guidance for the fourth quarter of Fiscal 2025 suggests product revenue will range between $906 million and $911 million, showing a projected 23% year-over-year growth.
Additionally, Snowflake has been making significant investments in AI and education. On January 13, 2025, the company launched the "One Million Minds + One Platform" initiative, committing $20 million to upskill one million people in AI and data by 2029. The program aims to train 100,000 users by 2027, offering free certification courses to learners in high-growth and emerging markets. Furthermore, Snowflake formed a strategic partnership with Anthropic, integrating its Claude models into the Snowflake platform to provide enterprise customers with cutting-edge AI tools. The integration of Claude 3.5 models into Snowflake’s Cortex AI service will allow businesses to securely leverage advanced AI capabilities, enabling use cases like coding assistants, document chatbots, and unstructured data analytics. These efforts align with Snowflake’s strategy to enhance its AI offerings and expand its footprint in the rapidly evolving tech space.
Palantir Technologies Inc. (NYSE: PLTR)
Palantir Technologies Inc. (NYSE: PLTR) reported an exceptional Q3 2024 results, with revenue growing 30% YoY to $726 million and U.S. revenue surging 44% YoY to $499 million. U.S. commercial revenue increased 54% YoY to $179 million, while U.S. government revenue rose 40% YoY to $320 million. The company closed 104 deals exceeding $1 million and expanded its customer base by 39% YoY. Profitability reached new highs, with GAAP net income of $144 million (20% margin), GAAP operating income of $113 million (16% margin), and adjusted income from operations of $276 million (38% margin). Adjusted free cash flow hit $435 million for the quarter, representing a 60% margin and over $1 billion on a trailing 12-month basis.
Palantir’s growth is driven by strong demand for its AI solutions, especially in the U.S., where institutions are rapidly adopting the company’s cutting-edge AI Platform (AIP). This has enabled seamless integration of AI into proprietary data and decision-making systems, further fueling growth. In contrast, Europe’s slower adoption underscores regional disparities in embracing AI innovation. The company’s inclusion in the S&P 500, achieved through record profitability and expanding demand, reflects its growing influence in the software and AI space.
Management highlighted that Palantir’s long-term investment in AI infrastructure has positioned it at the forefront of the ongoing AI revolution, which is reshaping industries and economies globally. For Q4 2024, Palantir projects revenue between $767-$771 million and adjusted income from operations of $298-$302 million. For FY 2024, revenue guidance has been raised to $2.805-$2.809 billion, with adjusted free cash flow exceeding $1 billion. U.S. commercial revenue is expected to surpass $687 million, representing at least 50% growth YoY. Palantir’s unmatched ability to deploy AI across critical industries and institutions cements its leadership in the software-centric AI era, driving both immediate performance and long-term potential.
Source: Company’s Report
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