Japanese investment bank Daiwa yesterday started coverage of AI data-infrastructure company Snowflake (SNOW) with a Buy rating and a $210 price target, Schwab Network reported today.

The investment bank is bullish on the data-infrastructure sector and sees SNOW as a top name in the space.

SNOW Has Multiple, Positive Catalysts, Daiwa Says

Boosted by the accelerated growth of software for generative AI, the profits of data-infrastructure companies should rise over the longer term, Daiwa forecasts.

Moreover, SNOW should get a lift from the efficiency of its products.

Finally, the proliferation of AI agents should also improve SNOW's performance going forward, according to the Japanese firm.

SNOW is Daiwa's top pick in the artificial intelligence-related data infrastructure space.

Daiwa Has Held SNOW Stock

According to an SEC filing that was released on Feb. 7, Daiwa held 76,686 shares of SNOW stock as of the end of last year. That was up from the 26,756 shares of the name that the Japanese firm held as of Sept. 30, but it represented a big decline from the 1.265 million shares of the name that it had owned as of June 30.

The Recent Price Action of SNOW Stock

In the last month, the shares have dropped 14%, while they are up 1% in the last three months.

While we acknowledge the potential of SNOW, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.