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Diverse Opportunities in AI-Related Stocks: Cognizant and Snowflake

Summary

Artificial intelligence (AI) has been a major topic of discussion this year, with investors eager to capitalize on the potential of this technology. Companies like Nvidia and Microsoft have experienced significant growth in their AI-related stocks. However, not all AI […]

Diverse Opportunities in AI-Related Stocks: Cognizant and Snowflake

Artificial intelligence (AI) has been a major topic of discussion this year, with investors eager to capitalize on the potential of this technology. Companies like Nvidia and Microsoft have experienced significant growth in their AI-related stocks. However, not all AI investments have to be expensive. According to Dave Sekera, a prominent market strategist at Morningstar, there are opportunities in AI-related stocks that may be more affordable at the moment. Sekera highlighted Cognizant Technology and Snowflake as two viable investment options in the field of AI.

Cognizant Technology provides services to companies looking to adopt AI. According to Sekera’s assessment, the stock is currently trading at a 24% discount to its Morningstar-calculated fair value. This presents an opportunity for investors, as the stock has already risen approximately 24% this year. Cognizant offers expert knowledge and financial support that many companies may lack in their own AI development and model training efforts. Sekera believes that companies will require the assistance and services provided by companies like Cognizant.

Snowflake, a company specializing in cloud services and data, also presents a promising investment opportunity according to Sekera. He believes that the Snowflake platform will be essential for training AI models in the future. This has contributed to a nearly 30% increase in Snowflake’s stock price this year.

Sekera’s positive outlook on these two stocks is not unique. In late October, Citi upgraded its rating on Cognizant from neutral to buy, raising the target price from $70 to $80. As for Snowflake, Barclays increased its target price for the stock from $183 to $198 in late November.

Frequently Asked Questions

Question: Are Cognizant and Snowflake suitable for long-term investment?
Answer: Sekera sees long-term potential for these two companies. However, it’s important to note that investing in any stock carries a certain level of risk. It’s always crucial to thoroughly research and analyze before making any investment decisions.

Question: Are there other AI-related stocks worth considering?
Answer: There are numerous companies operating in the AI field. Cognizant and Snowflake are just a couple of the options highlighted by Sekera. It is advisable to study the market and consult with financial experts to find the most favorable investments that align with your investment strategy.

Question: Where can I find more information about these stocks?
Answer: Additional information about Cognizant and Snowflake can be found on their official websites, as well as on financial platforms that provide stock market information, such as Yahoo Finance or Google Finance. It’s always recommended to utilize multiple sources to gain a comprehensive understanding of a particular company.