AI Shares Quietly Excel Beyond Market Standards
Snowflake, a cloud data platform, and Twilio, a cloud communications platform, are both positioned to benefit from the growing demand for AI-driven cloud services.
According to recent financial data from YCharts, Snowflake's earnings are expected to increase by a third in the current fiscal year to $1.10 per share. The company's data cloud platform enables customers to store their data in a single platform and derive insights and build applications. In the previous quarter, Snowflake's remaining performance obligations (RPO) increased by 34% year over year to $6.7 billion. Snowflake's AI-specific tools are used by nearly 45% of its 11,600-strong customer base weekly.
Twilio, on the other hand, trades at 26 times forward earnings and 4 times sales. The company's stock has increased by 115% in the past year, and Twilio ended the first quarter of 2025 with more than 335,000 active customer accounts, an increase of 7% from the previous year. Twilio's application programming interfaces (APIs) allow clients to connect with customers through various channels. The company offers multiple AI tools to customers, including generative AI-powered assistants and real-time conversational AI assistants. The higher customer spending and an increase in Twilio's customer base have led to an increase in the company's full-year organic revenue growth guidance to 8%.
Both companies stand to benefit from growing enterprise AI adoption, cloud migration, and data integration demands. Snowflake’s data platform supports AI/ML workloads, while Twilio’s communications APIs enable AI-powered customer engagement. Key drivers for growth include increasing enterprise AI investments, new AI feature rollouts, partnerships (e.g., with AI vendors or cloud providers), and strong revenue / subscription growth trends.
While exact growth projections or price targets for Twilio and Snowflake AI stocks are not available, their stocks could appreciate if they report similar growth and AI enhancements. However, competition, economic uncertainties, and execution of AI initiatives pose risks.
Investors should watch their upcoming earnings releases, AI product developments, and market adoption trends for clearer outlooks. For detailed price forecasts or stock performance data for Twilio and Snowflake AI stocks specifically, additional specialized financial or analyst reports would be needed.
[1] Source: ServiceNow Q2 2025 financial report. ServiceNow, a closely related company, reported solid financials with a 22% year-over-year revenue increase in Q2 2025, strong subscription growth, and continued investments in R&D to expand AI capabilities. Their cash flow and renewal rates indicate stable growth prospects in AI-driven services, which is relevant industry context for evaluating cloud software companies like Twilio and Snowflake.
- Investors might find it prudent to examine the upcoming earnings releases of Twilio and Snowflake, as these could provide insights into their AI-driven growth strategies and potential for stock appreciation.
- The increasing trend of enterprise AI investments is likely to benefit both Twilio and Snowflake, given their focus on cloud services and AI-powered solutions.
- In addition to strong growth prospects in AI-driven services, Twilio and Snowflake could potentially gain from new AI feature rollouts, strategic partnerships, and market adoption trends.
- As with any investment, it's crucial for investors to be aware of potential risks such as competition, economic uncertainties, and execution of AI initiatives, which could impact the performance of Twilio and Snowflake's stocks in the stock-market.
