Venu
Position Trader, Market Leaders, Fundamental/Technical Analysis
NetApp has quietly become a leader in AI infrastructure, as AI storage demand supports its data layer. While many AI names fell to their 200-day moving averages, NetApp held its dot-com-era highs, turning decades-long resistance into support. It has a strong PEG ratio, with EPS expected to grow from $8.13 to $10.52 by 2028. x.com
NetApp is worth re-entering. x.com
NetApp is a premier software play in data management, cloud and storage, with institutions rushing in and few trying to get out. It gapped higher on earnings, broke out on good volume and carries an A accumulation/distribution score. x.com
NetApp looks overvalued, trading at a 32 P/E for just 12% growth. x.com
NetApp's rerating case is tied to Alphabet's capex, made stronger by NetApp being named Google Cloud's 2026 Infrastructure Modernization Partner of the Year for Storage. The stock also broke above its descending trendline. x.com
SanDisk's data-center flash growth shows AI inference is becoming a larger storage customer. Data-center revenue reached $4.8bn, up 61% in a quarter and over 40% of sales; total revenue of $11bn and EPS of $49.51 beat expectations. Guidance of $12.4bn revenue and $56 EPS suggests feared supply normalization has not yet eroded pricing. Overweight, with a $2,700 target. x.com x.com
Penguin Solutions can earn years of operating revenue after deploying AI clusters, making its roughly 12x FY2027 guided adjusted earnings an interesting setup if it delivers projected 55% EPS growth and adds longer-term work. Management has discussed 3–5 year neocloud engagements; 12 AI infrastructure customers expanded in FY2026. Memory pricing, customer financing and deployment delays remain risks. x.com
Western Digital's hard drives capture AI-generated data, supporting stronger margins and guidance. Most data from models, agents and robots ends up on hard drives. Revenue rose 55% to $4.38B, gross margin hit 58.1%, and next-quarter revenue guidance rose to $5.0-5.2B versus $4.57B expected; EPS guidance midpoint is 21% above consensus. Before earnings, at ~15x earnings it looked priced as a cyclical, not an AI winner. Overweight, $613 target and 62% indicated upside in the pre-earnings report. … Show more
NetApp wins whichever AI model prevails, because every model needs secure, governed access to the same proprietary enterprise data, permissions and context. As models get cheaper and easier to swap, that data becomes more valuable. NetApp's acquisition of DataPelago adds what it calls zero copy activation, processing data where it already lives instead of copying it into a separate AI stack each time. x.com
Western Digital benefits from HDDs' low storage cost and growing cloud demand, with higher NAND prices adding pricing power. Nearline bit demand normally grows 20-25% with some deflation, while AI data growth now exceeds 30%; HDD costs ~$0.02-$0.03/GB versus ~$0.25 for NAND. Before AI, the consolidated, ~95% cloud-exposed market looked worth a low-to-mid-teens multiple of normalized EPS. Entry barriers are extremely high, but irrational competition among the three players is a risk. x.com x.com … Show more
Everpure's growth outlook is far stronger than expected. It guided FY28 revenue to $7.0-7.3B, 45% growth and well above the $6.19B consensus. Management also said Scale AI, Modern Data Software and Hyperscale Solutions could reach 20% of revenue by FY30, pointing to an AI-driven opportunity beyond core storage. x.com
