BOZEMAN, Mont. - Snowflake Inc . (NYSE: NYSE:SNOW), known for its AI Data Cloud solutions, announced new features designed to enhance the development of AI-powered applications for enterprises. The announcement, made at Snowflake's annual BUILD 2024 developer conference, focuses on enabling developers to create more accurate and trustworthy conversational apps, optimize natural language processing pipelines, and accelerate machine learning with GPU-powered containers.
The company's latest innovations aim to simplify the creation of conversational apps by allowing integration with diverse data sources and providing native agent-based orchestration. Snowflake's Cortex AI, a fully managed AI service, now supports multimodal inputs, including images, with plans to expand to audio and other data types. Additionally, new knowledge base connectors, such as the Snowflake Connector for Microsoft (NASDAQ:MSFT) SharePoint, facilitate the integration of internal and external data, respecting intellectual property through isolation and clear attribution.
To improve data readiness, Snowflake introduced new document preprocessing functions, which include layout-aware text extraction and text chunking, simplifying the process for business analysts and data engineers. The upcoming Cortex Chat API aims to reduce manual integration and orchestration work by combining structured and unstructured data into a single REST API call.
For batch large language model (LLM) inference, Snowflake is expanding its selection of pre-trained LLMs and introducing Cortex Serverless Fine-Tuning to allow customization with proprietary data. The Provisioned Throughput feature will enable enterprises to process large inference jobs with guaranteed throughput.
Snowflake ML's new Container Runtime supports executing ML training and inference jobs on distributed GPUs from Snowflake Notebooks, which are now generally available. This enhancement is expected to speed up model development for ML teams.
The press release also mentioned the acquisition of TruEra by Snowflake in May 2024, which has contributed to the integration of technology for AI app evaluation and monitoring. Snowflake's advancements are based on the premise that accurate and trustworthy AI is critical for effective decision-making in today's organizations.
This news is based on a press release statement from Snowflake Inc. and is intended for informational purposes only.
In other recent news, Snowflake Inc. reported a significant 30% year-over-year increase in product revenue, reaching $829 million for its second quarter of fiscal year 2025, and raised its full-year product revenue outlook. The company also completed a substantial $2.3 billion convertible debt offering. In analyst news, KeyBanc Capital Markets adjusted its outlook on Snowflake shares, reducing the price target to $150 while retaining an Overweight rating. Similarly, Monness Crespi Hardt upgraded Snowflake from Neutral to Buy, setting a new price target of $140.00.
Snowflake has also introduced several enhancements to its data platform, including new AI features. The company revealed its Snowflake Open Catalog, which supports the integration of new engines and the application of consistent governance controls. Additionally, Snowflake introduced Document AI, a tool that extracts valuable insights from unstructured data. The company also announced new threat prevention and security monitoring capabilities, along with improvements to its platform's economics.
These are the recent developments for Snowflake, indicating a continued commitment to improved execution and quicker product innovation. Other firms such as Truist Securities, Citi, Stifel, and TD (TSX:TD) Cowen have maintained their Buy ratings, with price targets ranging from $165 to $210. The company's ongoing enhancements and robust financial performance have garnered the attention and confidence of several analyst firms.
InvestingPro Insights
As Snowflake Inc. (NYSE: SNOW) unveils its latest AI innovations at BUILD 2024, investors may be interested in the company's financial position and market performance. According to InvestingPro data, Snowflake boasts a substantial market capitalization of $41.4 billion, reflecting its significant presence in the cloud data platform market.
Despite the company's impressive revenue growth of 31.21% over the last twelve months, with total revenue reaching $3.21 billion, Snowflake is currently not profitable. This is evidenced by its negative P/E ratio of -40.18 and operating income margin of -38.89%. However, InvestingPro Tips indicate that analysts predict the company will become profitable this year, which could be a positive sign for investors considering the stock's potential.
Snowflake's focus on AI and data cloud solutions aligns with its high revenue valuation multiple, as noted in another InvestingPro Tip. This suggests that investors are pricing in expectations of continued strong growth and future profitability, particularly as the company expands its AI capabilities.
It's worth noting that Snowflake holds more cash than debt on its balance sheet, which provides financial flexibility as it invests in new technologies and features like those announced at BUILD 2024. This solid financial footing could be crucial for sustaining its innovation pipeline and market position in the competitive cloud and AI space.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with 7 total tips available for Snowflake. These could provide valuable context for evaluating the company's financial health and growth prospects in light of its latest technological advancements.
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