10 Undervalued Quantum Computing Stocks to Buy Now

3. NetApp, Inc. (NASDAQ:NTAP)

Number of Hedge Fund Holders: 41

Forward Price to Earnings (P/E) ratio: 11.84

NetApp, Inc. (NASDAQ:NTAP) offers data management options for both hybrid and public clouds. With its two main segments, Hybrid Cloud and Public Cloud, the company provides storage infrastructure and data services to industries like energy, healthcare, manufacturing, and tech. Its main products include software like NetApp ONTAP, SnapMirror, and SnapLock, plus cloud solutions, such as NetApp Cloud Volumes ONTAP and Azure NetApp Files.

In Q3 FY2025, NetApp, Inc. (NASDAQ:NTAP) posted revenue that grew 2% year-over-year to $1.64 billion. The company’s operating margin was at 30%, beating expectations, while EPS reached $1.91, matching predictions. Furthermore, the all-flash array business jumped 10% to a $3.8 billion annual run rate, while public cloud revenue increased 15%, with cloud storage services surging over 40%. Meanwhile, the company’s Storage-as-a-Service (Keystone) offering shot up nearly 60%.

NetApp has been making progress upgrading products, including refreshing high-performance AFF A-Series arrays, launching new entry-level ASA systems, and enhancing its StorageGRID object storage. NetApp, Inc. (NASDAQ:NTAP) is selling its Spot by NetApp business to Flexera, with the deal expected to close in early March 2025. Additionally, public cloud gross margins improved from 66% to 76%, while the company returned over $300 million to stockholders through dividends and buybacks.

For FY2025, NetApp, Inc. (NASDAQ:NTAP) expects revenue between $6.49-$6.64 billion, representing 5% growth at the midpoint. It projects EPS growth of 12% to $7.17-$7.27 per share, while Q4 product gross margin is expected to land around 56%. Despite strong financial performance, the company faces sales challenges and a slowdown in European markets, especially France and Germany. Still, its AI business looks promising, with over 100 AI infrastructure wins in Q3 and growing enterprise adoption, positioning NetApp as a foundation for AI-as-a-Service. At the same time, it also makes it to our list of the cheap stocks to buy.

In addition, as AI storage of NetApp, Inc. (NASDAQ:NTAP) advances, it is providing support to growing data needs in quantum computing. As more businesses adopt AI, NetApp’s robust storage solutions provide a solid base for the massive data requirements of quantum computing, helping this technology move into mainstream business use.