Pure Storage shares rose 24% after announcing a contract with an unnamed “top four” AI hyperscaler, beating Wall Street’s estimates and upping its full-year outlook. The company’s CEO, Charles Giancarlo, said the deal offers a cost-effective and high-performance solution that can replace 90% of storage needs.
The partnership is seen as a significant win for Pure Storage, which has already gained 50% this year. Analysts predict further upside with additional hyperscaler agreements. Piper Sandler upgraded shares to an “overweight” rating, while Wedbush Securities analysts Matt Bryson and James Fish called the news “margin accretive” and predicted a $76 price target.
The deal marks a shift in the storage market, as AI hyperscalers seek alternative methods for managing data-heavy needs. With this partnership, Pure Storage is poised to benefit from what analysts call a “secular tailwind” for the space.
Source: https://www.cnbc.com/2024/12/04/ai-play-pure-storage-soars-22percent-after-touting-it-won-a-contract-with-an-unnamed-big-tech-company.html