Investing.com–Wedbush has its rating on software companies Snowflake and Elastic citing increased optimism about their exposure to the fast-growing artificial intelligence industry, especially at the enterprise level.
Webush upgraded both Snowflake Inc (NYSE:) and Elastic NV (NYSE:) from Neutral to Outperform. The brokerage also raised its price targets on software giants Palantir Technologies Inc (NYSE:) and Salesforce Inc (NYSE:).
For Snowflake, Wedbush said it expects “significant improvement” in product revenues before an AI-powered 2026. The cloud company is “well positioned” to capitalize on AI use cases over the next 12 to 18 months, Wedbush said.
For Elastic, Wedbush said the cloud company would likely benefit from increased demand for its platform approach to cloud computing, especially as more customers look to switch from legacy vendors.
It is expected that cloud companies will benefit from the rapidly growing computing requirements of AI programs, especially considering that most AI users will not be willing to set up their own AI server infrastructure.
Both Snowflake and Elastic posted strong gains last week, pushing their stock prices to multi-month highs.
Wedbush raised its price target on Palantir from $57 to $75, citing increased confidence in the company’s AI as a platform strategy, as well as exposure to increased use cases for AI. The stock is rated as Outperform.
For Salesforce, Wedbush raised its price target from $325 to $375 and kept the stock at Outperform. The brokerage said it was seeing increasing demand for Salesforce’s offering, especially on the AI front.
