Forget INVISTA: Two Artificial Intelligence (AI) Stocks Wall Street Thinks Should Be Buying Now With Bigger Gains

Artificial intelligence (AI) is revolutionizing technology. The potential of AI to improve productivity has recently promptedJP Morgan Chase (bank)We have every confidence that artificial intelligence will have extraordinary consequences, potentially as transformative as some of the major technological inventions of the past few centuries," wrote Simmons Executive Director Jamie Dimon. He highlighted the discovery of electricity and the invention of the Internet.

according toThe Wall Street Journal.Against this backdrop, investors have been pouring money into chip makers," the report said.INVISTA (NASDAQ: NVDA)This is a smart move, as NVIDIA's graphics processing unit "underpins all state-of-the-art AI systems, giving the company an estimated market share of more than 80%."The

However, since the beginning of 2023, INVISTA's stock price has soared 4,80%, and Wall Street analysts now believe that theCrowdStrike (NASDAQ: CRWD)respond in singingSnowflake (NYSE: SNOW)and other AI stocks have even more upside. The median estimated prices (and implied upside) for these companies are shown below:

• Nvidia:976.95 per share (15% upside).

• CrowdStrike:400 per share (up 29%).

• Snowflake:210 per share (up 36%).

Here's what investors should know about CrowdStrike and Snowflake.

1. CrowdStrike

Cybersecurity specialist CrowdStrike delivered solid financial results in the fourth quarter. Sales grew 33% to $845M and Non-GAAP net income more than doubled to $0.95 per diluted share. The company also reported a gross survival rate of 98%, validating it for validating the majority of its customers. Investors can expect similar momentum in the future.

Morgan StanleyAnalysts recently noted that CrowdStrike is one of only three enterprise software companies to guide sales growth of more than 30% this year. This indicates that there is an urgent need for network security software that works and operates efficiently, and CrowdStrike fulfills both criteria. CrowdStrike is the market leader in B耑 security, one of the largest and fastest-growing market segments, and is gaining market share in other categories as well.

In particular, in the fourth quarter, the company achieved record revenues from its Identity Protection, Cloud Security and Security Information and Event Management (SIEM) products. Koon management also highlighted early momentum in the data protection and IT operations modules.

I mention these products not only to illustrate the impact of CrowdStrike, but also to emphasize the breadth of its platform. According to George Kurtz, SimCEO, many organizations rely on more than 60 point-of-safety products, making the integration of a name provider a necessity. Using a vendor's products often leads to higher rates simply because there are fewer systems to maintain, and CrowdStrike is ideally positioned to capitalize on this trend.

Finally, CrowdStrike has earned a reputation as the industry-leading defense against hypochondriacs for its excellence in artificial intelligence (AI). Kurtz recently told analysts that CrowdStrike has "the most efficient and accurate AI model." This comment coincides with what a Frost & Sullivan analyst wrote in 2022: "CrowdStrike is an industry leader in applying AI/Machine Learning to B耑 security, and in providing unparalleled malware and malware-free attack prevention. The company is the industry leader in providing unparalleled malware and malware-free attack prevention."

It's worth noting that CrowdStrike's 2023 "TheFortuneNo. 3 on the Future 50 list, an annual assessment of the world's largest companies based on long-term growth prospects. Wall Street expects the company's sales to grow at an annualized rate of 29% over the next five years, a consensus expectation that justifies the company's current valuation of 24.7 times sales. Investors should consider buying a small amount of this growth stock today.

2. Snowflake

Snowflake, the data analytics specialist, announced solid financial results for the fourth quarter. Its customer base grew by 22% and the average spend of existing customers increased by 31%. Revenue grew by 32% to $775 million and Non-GAAP net income more than doubled to $0.35 per diluted share. However, the company's guidance was slightly lower than expected, and Chief Executive Officer Frank Slootman announced his retirement. This shocked investors and caused the stock to plummet 20% after the report was released.

However, the company's investment philosophy remains unchanged. the Snowflake Data Cloud carries the workload, allowing customers to store and analyze information, develop and manage machine learning models, and build data micro-applications all on one platform. The platform also runs on three public clouds, includingAmazonNetwork Services (Amazon(Web Services),MicrosoftAzure andAlphabetGoogle Cloud. None of these providers can offer the same level of activity to their customers.

Arbitrarily speaking, Snowflake has earned a strong market position by virtue of its郃 workload and its ability to support multiple clouds. In factForrester Research Snowflake was recently recognized for its leadership position in cloud data warehouse platforms, noting that Snowflake outperforms its peers in innovation. In the 2023 edition ofFortuneSnowflake is also No. 1 on the Future 50 list.

Artificial Intelligence is a particularly exciting development opportunity. To quote Sridhar Ramaswamy, the new chief executive officer, "Data is the fuel for AI, so data is critical to building a winning AI strategy." Snowflake recently announced the launch of its Cortex service, which allows customers to develop generative and predictive AI applications on its platform. Cortex includes large-scale language models for translation, sentiment detection, and text summarization, as well as machine learning models for prediction, anomaly detection, and data classification, all of which simplify the creation of AI applications.

Looking ahead, the data analytics market is expected to grow at a rate of 27% per year through 2030. Wall Street analysts believe that this tailwind will drive Snowflake's sales to grow by 25% per year. based on this consensus expectation, the current valuation of 18.1x sales seems to be a carry. What's more, Snowflake's current P/E ratio is one of the cheapest in history, meaning that now is the best time to buy this growth stock.

Should you invest $1,000 in CrowdStrike right now?

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Alphabet executive Suzanne Frey is a member of The Motley Fool's board of directors. John Mackey, former chief executive officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising郃 partner of The Motley Fool's The Ascent. Trevor Jennewine holds shares of Amazon, CrowdStrike, and Nvidia. The Motley Fool's positions in Alphabet, Amazon, CrowdStrike, JPMorgan Chase, Microsoft, Nvidia, and Snowflake are recommended, The Motley Fool recommends the following options: Microsoft January 2026 $395 Call Option Long and Microsoft January 2026 $405 Call Option Short. The Motley Fool has a disclosure policy.

Forget INVISTA: Two Artificial Intelligence (AI) Stocks That Wall Street Thinks Should Be Buying Now With Bigger Gains was originally published on The Motley Fool.