NetApp stock rating reiterated at Neutral by UBS on AI initiatives

Investing.com - UBS has reiterated its Neutral rating and $114.00 price target on NetApp (NASDAQ:NTAP), currently trading at $123.30 with a market capitalization of $24.53 billion, following announcements at the company’s INSIGHT customer conference. According to InvestingPro data, the stock has surged 48% over the past six months, though current analysis suggests it may be slightly overvalued.

NetApp unveiled a series of solutions and partnerships aimed at accelerating and simplifying customers’ cloud and AI transformations, according to UBS analyst David Vogt.

Key announcements included ’NetApp AFX’, an enterprise-grade all-flash storage system built on ONTAP for NVIDIA DGX SuperPOD, and a collaboration with Cisco to offer a converged infrastructure solution integrating ONTAP with Cisco Nexus 400G AI switches.

UBS noted these initiatives could increase NetApp’s long-term total addressable market (TAM), but cautioned the market remains "fairly competitive."

The firm does not expect a financial benefit from these offerings in NetApp’s fiscal 2026, despite signs of enterprise AI adoption, including Cisco securing nearly $1 billion in Enterprise/Sovereign AI switching orders and Dell engaging with over 3,000 enterprise customers on AI initiatives.

In other recent news, NetApp has made several significant announcements that could impact its position in the technology market. The company recently introduced new enterprise-grade data platform products designed for artificial intelligence workloads at its INSIGHT 2025 conference in Las Vegas. This includes the launch of NetApp AFX, a disaggregated all-flash storage system, and the NetApp AI Data Engine, which connects enterprise data to AI models and applications. Additionally, NetApp has enhanced its cyber resilience capabilities by unveiling first-in-industry data breach detection for enterprise storage and isolated recovery environments for mission-critical data.

In collaboration with Cisco, NetApp is working to enhance converged infrastructure offerings, integrating its AFX architecture with Cisco Nexus switches for improved AI networking infrastructure. This partnership aims to deliver high-bandwidth, low-latency networking capabilities for AI applications. Furthermore, NetApp has expanded its partnership with Google Cloud by introducing new block storage capabilities in Google Cloud NetApp Volumes, supporting both NAS and SAN protocols. Analysts at Evercore ISI have raised their price target for NetApp to $115 from $110, maintaining an "In Line" rating, following these developments.

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