AI wave of 2025: Piper Sandler recommends two top stocks

Artificial intelligence (AI) has experienced a huge boom in recent years and its importance in the technological world continues to grow. Following the launch of ChatGPT at the end of 2022, AI has rapidly spread to many industries and has become a key part of the digital economy. According to an analysis by market.us, the global value of AI applications was estimated at $2.8 billion in 2023 and is expected to reach $128 billion by 2033.

According to analysts at Piper Sandler, we now stand on the cusp of the next big AI wave, which could bring long-term monetization opportunities. The firm has therefore picked two AI software company stocks that could be among the most interesting investments of 2025. Let's take a closer look at them.

Snowflake $SNOW

The first company on the list is Snowflake, a provider of cloud-based data analytics solutions. Snowflake allows its clients to easily access, share, and analyze stored data, including the use of AI. Snowflake's Data Cloud platform is popular not only for its flexibility, but also for its performance and ability to efficiently process huge volumes of data.

Snowflake is investing in AI through its Cortex AI product, which enables the creation of generative AI applications. The service supports automated data modeling and minimizes the need for human process control. Snowflake's number of large clients is growing; as of January 2025, the company had 580 customers with annual product revenues exceeding $1 million. The total value of contract commitments has reached $6.9 billion.

According to analyst Brent Bracelin of Piper Sandler, Snowflake is a high-quality database platform with potential for further growth. Bracelin rates Snowflake as Overweight (Buy) with a $215 price target, which implies an expected upside of 43.5% for the stock.

Autodesk $ADSK

Piper Sandler's second analyst pick is Autodesk, a firm that provides software for engineering, construction and design applications. Autodesk's products are indispensable for architects, civil engineers, industrial designers and animators. The company focuses on a subscription model, with up to 97% of its revenue being recurring.

Autodesk introduced the new Autodesk AI platform in 2025 to help users keep up with technological changes. AI features are designed for architects, engineering firms, manufacturers and content creators.

In Q4 of fiscal year 2025, Autodesk reported strong financial results: revenue grew 12% to $1.64 billion and free cash flow reached $678 million. The company also announced a major restructuring, including laying off 9% of its workforce (over 1,300 people) to free up resources for AI development.

Analyst Clarke Jeffries rates ADSK "Overweight" with a $357 price target, representing an expected upside of 42%.

Snowflake and Autodesk are among the most interesting AI stocks for 2025. Snowflake is benefiting from the boom in cloud databases and AI analytics, while Autodesk is integrating AI into its design software. If the AI market continues its growth, these companies could deliver attractive returns to investors.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct thorough self-analysis.

Source: Yahoo Finance