Pure Storage, Inc. Class A Stock News

Shares of the all-flash storage company – Pure Storage (NASDAQ: PSTG) – have risen over 20% in the previous six months, driven by the company's essential role in delivering power-efficient, high-density arrays for AI data centers. Nonetheless, despite these favorable conditions, we consider the stock to be unattractive at its valuation of approximately $70.

Western Digital leads the highly concentrated HDD market, benefiting from scale, advanced UltraSMR technology, and a dominant data center presence post-SanDisk spin-off. Pure Storage excels in all-flash arrays with a dual revenue model and stable subscription growth but faces slowing growth and increased competition in a more fragmented market. Both companies have their own unique strengths, bu...

Nvidia's graphics processing units are the industry standard in artificial intelligence infrastructure, but the company is truly formidable due to its full-stack strategy. Meta Platforms is using artificial intelligence to improve engagement and advertising conversion rates across its portfolio of industry-leading social media properties.

Pure Storage (PSTG) is undervalued after a 30%+ share price decline, despite strong recent results and raised guidance. Concerns about margin compression are overstated; PSTG's operating and gross margins are expanding, driven by high-margin hyperscaler royalties. PSTG continues to gain market share in all-flash storage, with competitive advantages in energy efficiency, density, and technology.

The S&P 500 has nearly doubled over the past three years, partly because of all the excitement over artificial intelligence.

Data management stock Pure Storage (PSTG) has carved a choppy path lower since its Nov. 3 record high of $100.45, mostly due to a Dec. 3 post-earnings drop of 27.3%. At last check today, PSTG was down 4.6% to trade at $66.54 – roughly 33% below its all-time peak.

Artificial intelligence (AI) stocks have taken a hit lately—but not all are moving in lockstep. Some names are rallying, others are falling, and a few are holding steady while sending strong signals through new buyback authorizations.

The S&P 500's median target price suggests the index will increase nearly 17% to 7,968 in the next year. Amazon, MercadoLibre, Circle Internet Group, and Pure Storage enjoy strong competitive positions.