Should You be Confident in the Growth Trajectory of Pure Storage (PSTG)?

Artisan Partners, an investment management company, released its “Artisan Global Discovery Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund’s Investor Class APFDX returned 2.65%, Advisor Class APDDX posted a return of 2.69% and Institutional Class APHDX returned 2.76%, compared to a -0.99% return for the MSCI All Country World Index. US stocks ended a strong year with strong gains in Q4. The portfolio outperformed the index in both Q4 and 2024. Strong stock selection drove the portfolio’s performance in Q4. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Artisan Global Discovery Fund emphasized stocks such as Pure Storage, Inc. (NYSE:PSTG). Pure Storage, Inc. (NYSE:PSTG) offers data storage and management technologies, products, and services. The one-month return Pure Storage, Inc. (NYSE:PSTG) was -5.95%, and its shares lost 12.55% of their value over the last 52 weeks. On April 2, 2025, Pure Storage, Inc. (NYSE:PSTG) stock closed at $46.01 per share with a market capitalization of $15 billion.

Artisan Global Discovery Fund stated the following regarding Pure Storage, Inc. (NYSE:PSTG) in its Q4 2024 investor letter:

"During the quarter, we initiated 10 new GardenSM positions, including Pure Storage, Inc. (NYSE:PSTG) and The SageGroup. Pure Storage is redefining enterprise data storage by bypassing traditional approaches used by competitors. Instead of purchasing costly enterprise-grade solid-state drives (SSDs) and layering software on top, Pure Storage sources raw NAND flash memory and designs custom all-flash storage systems, providing a cost advantage. The company has been gaining share of the core enterprise data storage market due to this offering, but we believe its recent announcement of securing a large hyperscaler data center contract potentially opens the company up to a much larger addressable market and gives us confidence that the company can accelerate its growth trajectory over the next two to three years."

Pure Storage, Inc. (NYSE:PSTG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Pure Storage, Inc. (NYSE:PSTG) at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the potential of Pure Storage, Inc. (NYSE:PSTG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We covered Pure Storage, Inc. (NYSE:PSTG) in another article, where we shared the list of best data storage stocks to invest in according to analysts. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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