The generative artificial intelligence (gen AI) boom may have lost a bit of its shine since the summer season began. Undoubtedly, the July wave of volatility, which carried into early August, played a huge role in scaring new investors out of the AI trade. Indeed, there's still a ton of growth potential on the table with some of the hottest AI growth stocks.

Notably, Nvidia (NASDAQ:NVDA) is the AI semiconductor giant that's led the way. Amid its euphoric, parabolic run, the stock has defied the odds, rewarding investors who stood by the name with incredible gains.

These gains may or may not be sustainable. Ultimately, the firm's coming quarterly reveal will dictate the trajectory of its shares (and probably the rest of the market) going into year's end. The price of admission is high. But then again, when hasn't NVDA stock been expensive?

The big question is whether the firm can surpass expectations and continue standing tall in the face of escalating expectations. For investors keen on betting on AI, it makes sense to show up to the Nvidia party, even if you're a few years late. That said, you had better be prepared for 10-15% moves in either direction. The trade is crowded, especially ahead of earnings. Indeed, such volatility will not be for everyone.

I'm the camp that missed Nvidia stock on the way up. However, unlikely some chasers of the AI stock, I'm more than willing to miss the name on the way down as well. Nvidia remains the world's top AI growth company, but I believe there's more value (and less in terms of expectations) to be had in some of the other less-talked-about AI companies out there.

Snowflake stock: The AI underdog that's lost most of its lustre

Consider shares of Snowflake (NYSE:SNOW), a data cloud company that's doubling down on AI since onboarding its new chief executive officer, Sridhar Ramaswamy, the founder of an AI search startup that Snowflake previously acquired. After its recent quarter, SNOW stock found itself crashing once again. Shares are currently going for just $118 per share after taking a 50% haircut from 52-week highs.

The $39.5 billion AI firm's shares may still be pricy despite shedding over 70% of its value from peak levels. However, I think the current multiple could prove a great deal should Snowflake be able to rise to the occasion going into its latter two quarters of the year.

Right now, investors seem concerned about higher expenses and unappealing operating margins. With third-quarter sales expected to lie in the $850-855 million range (that's growth of just 22%), investors don't really have a great deal to pound the table over.

The good news is that the firm's new AI innovations (think Cortex Analyst) could improve growth and margins over the longer term. Once rate cuts give the bull market a boost and enterprises ramp up AI spending further, I'd expect SNOW stock to finally start recovering from its historic funk.

Bottom line

Snowflake stock may not be the next Nvidia, but it's an AI-driven data cloud powerhouse in the making. Yes, there are rivals to monitor, but with a proven technologist running the show, I'd not be afraid to buy the recent dip. If deep value and AI growth are what you seek, Snowflake should be on your radar for the rest of 2024!