NetApp Builds AI Infrastructure On NVIDIA AI Data Platform

NetApp, Inc. (NASDAQ:NTAP) has moved to capitalize on the growing need for intelligent data infrastructure amid the ever-increasing adoption of AI to solve complex business challenges.

On May 19, it inked a strategic partnership with Nvidia to accelerate NVIDIA AI Data Platform integration in the NetApp AIPod solution. The ultimate goal is to accelerate agentic AI adoption.

Integrating NVIDIA AI Data Platform in NetApp AIPod should help businesses build secure, governed, scalable AI data pipelines. By utilizing continually updated metadata and vectorization, the NVIDIA AI Data Platform supports NetApp's ambition for better data management capabilities to speed up AI pipelines and enable queries to yield more accurate, fast, and relevant results.

Consequently, NetApp customers will benefit from enterprise data management capabilities and scalable multi-tenancy to strengthen their competitive edge in the era of AI inferencing. The strategic partnership with Nvidia comes on the heels of Barclays upgrading NetApp to an Overweight from Equal Weight.

The bullish rating comes amid growing confidence that NetApp is capitalizing on its leadership in cloud storage, which is depicted by substantial recurring revenue and improved product margins. According to Barclays analysts, investors underappreciated NetApp’s fast-growing cloud business and high-margin services. That’s clear given that the stock has been down by about 12% in the year.

While we acknowledge the potential of NetApp, Inc. (NASDAQ:NTAP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NTAP and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.