Investors hunting for AI winners beyond the usual chip suspects are increasingly looking at software and cybersecurity. And according to Silvant Capital Management, three names stand out: Snowflake Inc. (SNOW), CrowdStrike Holdings Inc. (CRWD), and Palantir Technologies Inc. (PLTR).
Michael Sansoterra, Silvant's chief investment officer, said Thursday that these companies are carving out valuable niches in the AI ecosystem. They're also meeting or beating investor expectations while riding a wave of rising demand. Silvant holds all three stocks through its Virtus Silvant Large Cap Growth strategy.
Snowflake Adds Value To AI Chain
Sansoterra pointed to Snowflake as a prime example of a company that has successfully adapted to the AI boom. Originally, Snowflake helped businesses manage data separately from their computing infrastructure. But lately, it has been shifting its platform toward AI-driven workloads, he told CNBC.
That pivot is helping customers manage and analyze data more efficiently while breaking down traditional data silos. Sansoterra says these benefits become especially important for AI models and major cloud platforms. He cited Snowflake's recent growth as proof that the strategy is working.
"These companies that can find a spot in the AI chain or add real value like a Snowflake" can benefit from the rapidly changing tech landscape, he said.
Cybersecurity Becomes More Critical
Sansoterra also sees cybersecurity playing a bigger role as AI models get more powerful and widely available. Companies have a growing responsibility to handle data safely as AI evolves, he said, and that backdrop strengthens the case for cybersecurity firms like CrowdStrike.
Still, he cautioned that the AI landscape is shifting quickly. Investors need to understand the companies they own and strike a balance between businesses with sky-high expectations and those with more modest ones. For Sansoterra, the real question is whether these companies can keep beating expectations as AI spending expands.
Price Action: In premarket trading Friday, CrowdStrike shares were down 1.09% at $212.62, Snowflake shares were down 1.35% at $351.65, and Palantir shares were down 1.66% at $179.50, according to market data.
