In an in-depth analysis of the enterprise software market, we have meticulously examined various exchange-traded funds (ETFs) and financial media reports to curate a list of the most promising enterprise software stocks. Our research has culminated in the identification of twelve stocks that not only gained significant traction among elite hedge funds but also drew attention from optimistic analysts. These stocks are ranked based on the number of hedge funds holding stakes in them as of the fourth quarter of 2024, with data sourced from Insider Monkey’s extensive database, which tracks the investment moves of over 900 top-tier money managers.

The rise of AI-driven automation is profoundly reshaping core business processes. Enterprise Resource Planning (ERP) systems and workflow management technologies are increasingly automating intricate tasks, thereby minimizing the need for manual intervention and enhancing overall operational efficiency. As enterprises continue to streamline their operations, they are also leveraging data-driven solutions through the adoption of essential features such as process mining, intelligent document processing, and predictive analytics. A particularly noteworthy trend is the emergence of agentic AI—sophisticated systems that function autonomously, mimicking human-like perception, reasoning, and data analysis to achieve specific objectives. With each passing day, enterprise software is evolving, integrating advanced AI capabilities that not only enhance existing applications but also make the technology itself more proactive and intelligent.

As enterprise software continues to transform, it is increasingly influenced by the integration of innovative AI technologies. According to recent insights from Endava, Generative AI (GenAI) is a driving force behind this transformation, imbuing enterprise applications with both creative and analytical capabilities. This evolution permits software to perform intelligent tasks, such as generating comprehensive reports, curating personalized training content, and even writing code. Beyond simply automating repetitive tasks, AI facilitates hyper-personalization in customer-facing software applications. For instance, platforms like Customer Relationship Management (CRM) and e-commerce systems can deliver tailored content and recommendations, ultimately leading to enhanced customer satisfaction and elevated sales figures. This shift is fueled by adaptive AI-enhanced software that learns from extensive datasets to provide real-time, individualized interactions.

In 2024, the global enterprise software market was valued at approximately $263.79 billion, as reported by Grand View Research. The market is projected to grow at a remarkable compound annual growth rate (CAGR) of 12.1% from 2025 to 2030. This growth is largely driven by the surging demand for automated and integrated solutions that reduce organizations' reliance on human resources to mitigate manual errors while automating routine tasks. As a result, solutions such as ERP, CRM, and data analytics software are witnessing an uptick in popularity.

Recently, we published a list highlighting the twelve best enterprise software stocks to consider for investment. In this article, we will specifically assess where Snowflake Inc. (NYSE:SNOW) stands among other leading enterprise software stocks currently available for investment.

So, why should investors be particularly interested in the stocks that hedge funds are heavily investing in? The answer is straightforward: our research indicates that mimicking the top stock picks of the most successful hedge funds can yield superior market performance. Our quarterly newsletter adopts a strategy that involves selecting fourteen small-cap and large-cap stocks each quarter and has achieved an impressive return of 373.4% since May 2014, outpacing its benchmark by an extraordinary 218 percentage points.

How Does Snowflake Inc. (SNOW) Compare Among Enterprise Software Stocks?

Snowflake Inc. (NYSE:SNOW) is notable for its innovative cloud-based data platform that serves a diverse array of organizations around the globe. Its comprehensive platform includes the AI Data Cloud, which empowers customers to consolidate their data into a single, accessible source. Snowflake caters to a variety of sectors, including financial services, media and entertainment, retail, healthcare, technology, and even the public sector.

The company’s enterprise software segment is primarily focused on its Data Cloud platform, which simplifies data integration and analysis for its users. This platform enhances data sharing and collaboration among various stakeholders. In the fourth quarter of 2024, revenue from this segment saw a remarkable year-over-year increase of 28%, with an overall growth of 30% for the entire fiscal year. Snowflake is committed to expanding its Data Cloud capabilities further, having released over 400 new product features in 2024—double the number released in 2023.

One of the standout features of the company’s offerings is its AI platform, Cortex AI. This platform enables clients to create data agents and utilize large language models from prominent providers such as Anthropic, Meta, DeepSeek, and OpenAI. On February 20, BTIG analyst Gray Powell upgraded Snowflake's stock to a Buy rating, assigning a price target of $220 due to the company’s expanding AI workloads and innovative AI projects. Powell highlights that Snowflake is well-positioned in the cloud data analytics landscape, bolstered by its growing GenAI product suite and strategic partnerships with technology and AI firms.

Burke Wealth Management has underscored the importance of Snowflake Inc. (NYSE:SNOW) for enterprises deploying AI solutions. In its Q4 2024 investor letter, the firm stated: “Snowflake Inc. (NYSE:SNOW): Chapter two of the Prodigal Son Returns features Snowflake. Snowflake’s return to the portfolio required some tangible progress on the product innovation front as well as an uptick in business momentum before I was ready to slaughter the proverbial fattened calf. To review, we sold our stake in Snowflake following its fourth quarter 2023 earnings release in which legendary CEO Frank Slootman announced his retirement and 2024 guidance came in significantly below expectations. While new CEO Sridhar Ramaswamy has an excellent reputation as an innovator in the technology sector, we needed to see some tangible signs of progress on that front as well as a stabilization in the core data analytics business before repurchasing the stock. That is what we got with the release of third quarter earnings. Consumption trends in the core business have stabilized and are improving while there are several exciting new product offerings around AI that have been added to the platform. We were early to Snowflake when we made our initial purchase in the summer of 2023. We subscribed to the belief that any companies seeking to implement AI solutions in their business will first need to make sure their data is both accessible and secure, which would drive tremendous demand for Snowflake’s platform. We still do. As we discussed in the agentic age portion of this letter, sometimes the path from installing the data center compute power necessary for generative AI and the arrival of the applications necessary to unlock the productivity promises is not always straight. That said, while the path may be winding, we remain confident in the ultimate destination. We think Snowflake is going to be a big player in helping enterprises get their data accessible and safely delivering AI solutions to that data, whether it be their own or from trusted partners, that will drive the productivity-enhancing business insights that are the reasons for the hundreds of billions of dollars being invested in artificial intelligence.”

Overall, Snowflake ranks fourth on our list of the best enterprise software stocks to buy right now. While we acknowledge SNOW's significant growth prospects, our firm belief lies in AI stocks' potential to deliver lucrative returns within shorter time frames. Notably, there is another AI stock that has appreciated since the start of 2025, while many popular AI stocks have experienced declines of approximately 25%. For those seeking an AI stock with greater promise than SNOW, and trading for less than five times its earnings, we encourage you to check our report on this promising investment opportunity.

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