Snowflake (SNOW) rose more than 3% Friday after DA Davidson initiated research coverage of the stock with a buy rating. Analysts from the firm contend that the cloud data provider is in an advantageous position due to its "best-in-class growth rates," along with a boost from the increased demand for artificial intelligence.
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CNBC's Jim Cramer agrees that Snowflake is poised to benefit from the craze, citing the company's strong leadership from CEO Frank Slootman and its "great business model" on integrating generative AI into its products.
"Enterprise software is where it's at. People don't realize it. They're really making a comeback," Jim said, citing upbeat earnings from the sector, including a strong quarter and rosy guidance from Salesforce (CRM), which is a holding in the CNBC Investing Club's portfolio.
Here's a full list of the stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club.