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SANTA CLARA, Calif. - Pure Storage (NYSE: PSTG), a provider of advanced data storage technology with a market capitalization of $18.14 billion and impressive gross profit margins of nearly 70%, has announced a collaboration with SK hynix Inc, a leader in AI memory solutions, to produce QLC flash storage products aimed at hyperscale data centers. This partnership aims to address the high demand for storage density, performance, and energy efficiency in these data-intensive environments. According to InvestingPro data, Pure Storage has demonstrated solid growth with revenue increasing by 11.92% over the last twelve months.
The collaboration will see the integration of Pure Storage’s DirectFlash Module products with SK hynix’s QLC NAND flash memory to create solutions designed for exascale workloads. The expected benefits include sustained high performance, increased energy efficiency, and improved scalability with a competitive total cost of ownership (TCO). These advancements are anticipated to enable hyperscale data centers to manage large volumes of data more effectively while reducing their carbon footprint. Based on InvestingPro’s Fair Value analysis, Pure Storage appears to be trading at premium valuations, with a P/E ratio of 168.42, suggesting investors are pricing in significant growth expectations.
Bill Cerreta, GM of Hyperscale at Pure Storage, emphasized the significance of the partnership in advancing all-flash storage technology for hyperscalers, highlighting the combined benefits of performance, scalability, reliability, and energy efficiency. Sam Lee, EVP and Head of Global Sales and Marketing at SK hynix, echoed this sentiment, noting the potential for the collaboration to propel innovation in data storage technology for hyperscale environments.
The announcement underscores the ongoing efforts by data storage companies to meet the evolving needs of modern data centers, which are increasingly focused on handling large-scale, data-heavy workloads with greater efficiency and lower environmental impact. Pure Storage maintains strong financial health with an InvestingPro Financial Health Score of "GOOD," and notably holds more cash than debt on its balance sheet. Discover 10+ additional exclusive ProTips and comprehensive analysis in the Pure Storage Pro Research Report, available to InvestingPro subscribers.
Pure Storage is known for its industry-leading data storage platform, offering a unified Storage as-a-Service platform across various environments. The company’s Evergreen architecture promises continuous improvement without planned downtime. SK hynix is recognized for its global presence in the AI memory industry, providing advanced NAND technology.
The collaboration between Pure Storage and SK hynix represents a strategic move to combine their respective technological strengths to support the growing demands of hyperscale data centers. This information is based on a press release statement from Pure Storage.
In other recent news, Pure Storage has been at the center of several notable developments. Evercore ISI maintains an Outperform rating for Pure Storage, with a price target of $60, citing robust revenue and earnings per share performance. UBS analyst David Vogt, however, adjusted the price target to $50, maintaining a Sell rating, expressing concerns over continued subdued demand and pressure on product gross margins due to rising NAND prices. Piper Sandler reaffirmed an Overweight rating with a $76 price target, acknowledging the company’s fourth-quarter performance that exceeded expectations and highlighted potential growth opportunities with major cloud providers.
Additionally, Pure Storage has announced the release of FlashBlade//EXA, a new data storage platform designed for AI and High-Performance Computing workloads, expected to be available in the summer of 2025. The platform aims to set a new industry standard with more than 10 terabytes per second read performance. In a strategic move, Pure Storage partnered with Varonis Systems to enhance data security, integrating Varonis’ AI-driven data protection with Pure Storage’s technology. This partnership is intended to bolster cybersecurity resilience for customers.
These recent developments reflect Pure Storage’s focus on expanding its market presence and technology offerings, as well as its ongoing efforts to navigate market challenges.
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