JP Morgan Maintains Overweight on Nutanix (NTNX) Despite Near-Term Muted Outlook

Nutanix, Inc. (NASDAQ:NTNX) is one of the best tech stocks to buy according to hedge funds. On August 28, JP Morgan maintained its Overweight rating on Nutanix, Inc. (NASDAQ:NTNX) while trimming its price target from $90 to $81. On September 2, the stock was trading at $67.12, which represents a 20.67% implied upside. The firm’s research note comes after Nutanix reported its Q4 Fiscal Year 2025 earnings on August 27. The bank expects the stock to “remain muted” in the near-term.

The company generated revenue of $2.54 billion for fiscal year 2025 and $653.27 million in Q4, a 19.22% year-over-year growth from the same quarter last year. The strong finish to the fiscal year was driven by subscription growth and strong customer acquisition.

More importantly, the company saw a turnaround in margins during the fiscal year. In FY 2025, the company’s net margin stood at 7.42%, a huge improvement from -5.81% in the previous year. The company’s forward P/E ratio stands at a reasonable 29.58x.

While we acknowledge the potential of NTNX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.