Snowflake Stock Rally Puts AI Data Software Shares On Retail Investors Radar

A single earnings report can reset the tone for an entire corner of the market, and Snowflake’s Q2 beat on both profit and revenue has done exactly that for data and analytics software stocks. When a company lifts guidance and sparks a sharp share price reaction, investors start to reassess who else could benefit. This article walks through three stocks exposed to the same AI and data optimism and explains why they might deserve a closer look.

The stocks covered below are just a starter sample, and the full screen surfaced 57 more AI driven data and analytics companies with equally compelling narratives that are not included in this article. To identify and analyze the highest conviction ideas in this space, head straight into the AI-Driven Data & Analytics Software screener.

SenseTime Group (SEHK:20)

Overview: SenseTime Group develops AI software platforms that use computer vision and large scale data analytics to power use cases across smart cities, enterprise digital transformation, healthcare, education, automotive and more, which places it squarely in the AI driven data and analytics theme. The company monetises these capabilities through platforms like SenseFoundry, SenseCare and SenseAuto, alongside AI data center and software services across Mainland China and overseas markets.

Operations: SenseTime generates about CN¥5.57b in revenue from Software & Programming, with most sales from Mainland China at roughly CN¥4.94b and smaller contributions from Southeast Asia, Northeast Asia and other regions.

Market Cap: HK$58.89b

SenseTime Group provides direct exposure to AI software that operates on data at scale, from smart city analytics to healthcare imaging and automotive applications. The company has recently reported profitability with H1 2026 net income of CN¥607.42m, which is consistent with the premium valuation investors are paying for its AI platforms. At the same time, high non cash earnings and reliance on external funding mean cash generation and balance sheet resilience still warrant closer scrutiny. Analysts have highlighted both the potential of SenseTime as an AI software provider and the execution and competition risks that accompany this positioning. For investors seeking pure play AI data analytics exposure, this is a stock that may merit closer monitoring.

SenseTime’s expansion into AI platforms across cities, healthcare and autos appears significant, yet cash generation and funding needs could be masking the real story. Get the 3 key rewards and 1 important major warning sign

Datadog (DDOG)

Overview: Datadog runs a cloud based observability and security analytics platform that helps enterprises monitor, analyze and secure data from their applications, infrastructure and AI workloads in one place. Its tools span metrics, logs, traces and security signals, which makes Datadog a central data and AI telemetry layer for many modern software stacks.

Operations: Datadog generates about US$4.0b of revenue from IT infrastructure related observability and security services, with roughly US$2.7b from the United States and about US$1.2b from international customers including North America outside the US.

Market Cap: US$80.4b

Datadog sits squarely in the AI driven data and analytics conversation because it watches the data exhaust from cloud and AI systems in real time, which many enterprises see as mission critical. Recent results highlighted strong usage growth and record quarterly revenue adds, while AI native customers are becoming a larger slice of the business, especially around GPU and LLM monitoring. At the same time, investors need to weigh a premium valuation, reliance on some large AI customers and ongoing heavy R&D spend, along with recent insider selling that may raise questions on timing. If Snowflake’s beat has you looking across the observability and data stack, Datadog is one of the key stocks where the upside and the risks are both very visible but not fully captured in headlines.

Datadog’s expanding role in AI observability could justify a premium, although the real story centers on the trade off between growth, heavy R&D and key customer concentration. Get the analyst forecasts for Datadog

Fractal Analytics (NSEI:FRACTAL)

Overview: Fractal Analytics builds AI and analytics software that helps large enterprises automate workflows, mine their data for insights, and improve decisions across areas like customer experience, healthcare, finance, and supply chains, with products such as the Cogentiq platform, medical imaging tools, and AI assistants for executives and recruiters.

Operations: Fractal Analytics generates about ₹33,717 million of revenue primarily from its Fractal.Ai segment, with a smaller ₹947 million contribution from Fractal Alpha and a ₹147 million intersegment elimination.

Market Cap: ₹141.3 billion

Fractal Analytics taps directly into the same AI driven data and analytics appetite that helped Snowflake reset sentiment, but from the angle of applied enterprise solutions rather than data warehousing. Earnings growth has been strong in recent years, margins have improved, and new deals such as the multi year Databricks engagement and Anthropic partnership show that large clients are trusting Fractal with critical AI and data foundations. At the same time, a higher P/E, reliance on external borrowing and only moderate forecast ROE mean investors need to be comfortable with paying up for growth that involves risk. For investors who want purer AI workflow automation exposure, Fractal is a stock that some may choose to put on a watchlist for further investigation.

Fractal Analytics appears to have earnings momentum colliding with rising expectations, yet the full picture is still easy to miss. Read the analyst forecasts for Fractal Analytics to see what might be quietly shifting under the surface.

Seeking Alternatives Before The Crowd Moves

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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