Cloud data analytics company Snowflake (NYSE:SNOW) is joining hands with semiconductor giant Nvidia (NASDAQ:NVDA) to offer the unending capabilities of generative artificial intelligence (AI) to business enterprises. The partnership was announced yesterday at Snowflake Summit 2023. Per the deal, Nvidia will bring its Nvidia Nemo platform to Snowflake’s Data Cloud segment.
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Details and Benefits of the Partnership
This integration will enable Snowflake’s customers to use Nvidia’s generative AI software to build, customize, and deploy large language models (LLMs) using their own data sets. Snowflake’s customers, including businesses such as healthcare, financial institutions, manufacturing, and retail clients, can use the platform to build chatbots like ChatGPT and advanced search programs. The scope of generative AI services has unending possibilities, with newer advancements taking place each day. Hence, this partnership will boost Snowflake’s customer base as more businesses choose to join the data cloud company to engage in training and building customized LLMs.
The added advantage of the deal is that customers are assured of the safety and security of their massive data sets in Snowflake’s cloud. Plus, customers are protected from the threat of data breaches, as they do not have to share their proprietary data with a third party to build state-of-the-art, generative AI applications. Yesterday, Snowflake also announced the expansion of its partnership with Microsoft (NASDAQ:MSFT) to venture into “large scale” generative AI models.
Commenting on the deal, Jensen Huang, founder and CEO of NVIDIA, said, “Together, NVIDIA and Snowflake will create an AI factory that helps enterprises turn their own valuable data into custom generative AI models to power groundbreaking new applications — right from the cloud platform that they use to run their businesses.”
Is SNOW Stock a Good Buy?
Yesterday, Deutsche Bank analyst Brad Zelnick lifted the price target on SNOW to $185 (from $170) while maintaining a Buy rating. The price target implies 8.9% upside potential from current levels.
On TipRanks, SNOW has a Moderate Buy consensus rating based on 21 Buys, seven Holds, and one Sell rating. The average Snowflake price target of $180.65 implies 6.4% upside potential from current levels. Meanwhile, SNOW stock has gained 25.3% so far this year.
Is NVDA a Good Buy Right Now?
The trillion-dollar-capitalization company has a Strong Buy consensus rating on TipRanks. This is based on 30 Buys and two Hold ratings. Also, the average Nvidia price forecast of $464.85 implies 14.4% upside potential from current levels. Thanks to its fast-paced AI advancements, year-to-date, NVDA stock has increased 183.9%.
