Snowflake recently announced a groundbreaking partnership with NVIDIA that signifies a new dawn in the world of AI data applications. The collaboration aims to empower customers and partners to craft tailor-made AI solutions within Snowflake’s platform, now supercharged with NVIDIA AI capabilities.
By incorporating NeMo Retriever microservices into Snowflake Cortex AI, its fully managed large language model (LLM) and vector search service, Snowflake ensures seamless integration for enterprises to connect custom models to diverse business data, resulting in highly accurate responses.
In a bid to enhance performance, Snowflake’s Arctic, the highly regarded LLM, now fully supports NVIDIA TensorRT-LLM software, offering users optimized performance. Arctic is now seamlessly integrated as an NVIDIA NIM inference microservice.
NVIDIA NIM inference microservices, as part of NVIDIA AI Enterprise, comprise pre-built AI containers deployable directly within Snowflake, functioning as a native app enhanced by Snowpark Container Services.
Expanding Portfolio to Drive Snowflake’s Prospects
Despite SNOW shares lagging behind the Computer & Technology sector and the Internet Software industry this year, Snowflake’s expanding portfolio sets a solid foundation for its long-term growth prospects.
An exemplar of this is the recent launch of Polaris Catalog, a vendor-neutral catalog based on Apache Iceberg. This open standard serves as a bedrock for data lakehouses and modern architectures, backed by Iceberg’s open-source REST protocol offering unfettered access to various data engines such as Apache Flink, Apache Spark, and others.
Polaris Catalog not only offers users flexibility and control over their data but also ensures enterprise security and compatibility with a gamut of tech giants like Amazon, Google, Microsoft, Salesforce, among others.
Benefiting from a robust partner ecosystem with heavyweights like Amazon, Microsoft, and NVIDIA, Snowflake stands as a Zacks Rank #3 (Hold) entity witnessing upward momentum. The company’s collaboration with Microsoft on an interoperability experience between Snowflake and Microsoft Fabric OneLake underscores its commitment to industry-leading standards like Apache Iceberg and Apache Parquet.
Moreover, the launch of Snowflake Data Clean Rooms in collaboration with Samooha in key cloud regions augurs well for its robust growth trajectory.
The Zacks Consensus Estimate for fiscal 2025 revenue stands at a remarkable $3.47 billion, implying a robust 23.78% growth over the previous fiscal year. Earnings per share are expected to remain steady at 64 cents, reflecting the market’s confidence in Snowflake’s strategic initiatives.