Is PSTG a good stock to buy? We came across a bullish thesis on Everpure, Inc. on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on PSTG. Everpure, Inc.’s share was trading at $67.80 as of April 22nd. PSTG’s trailing and forward P/E were 126.11 and 31.25 respectively according to Yahoo Finance.
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Everpure, Inc. provides data storage and management technologies, products, and services in the United States and internationally. PSTG delivered a bullish 4QFY26 print demonstrating that the value in modern storage is shifting from commodity flash to the intelligence layer that orchestrates it. The company reported revenue of $1.06 billion, up 20% year-over-year, and adjusted EPS of $0.69 versus $0.45 last year, beating expectations, while guiding Q1 revenue above consensus.
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Enterprise momentum remained the core driver, with RPO accelerating to +40% and large deal activity expanding, reinforcing demand from customers consolidating fragmented storage vendors into a single operating system via its Fusion platform. Enterprise franchise continues to grow independently of hyperscalers and highlights strong structural demand for simplification in enterprise data infrastructure.
Everpure is emerging as a critical hyperscaler partner, with management outlining a 75–85% gross margin model for hyperscaler revenue where customers purchase raw NAND directly while Everpure monetizes the control layer. This separation of commodity media and intelligence layer positions it closer to ARM’s model in semiconductors than traditional storage peers like Dell or NetApp. Hyperscaler revenue is expected to ramp in FY27, providing a second high-margin growth engine.
Despite NAND inflation pressuring near-term product margins to the low end of guidance, Everpure’s architecture advantage widens in a rising cost environment due to superior data reduction efficiency. The market has historically mispriced as a bundled storage vendor, but the structural unbundling of flash economics is re-rating Everpure as an infrastructure intelligence platform.
Accelerating enterprise demand, emerging hyperscaler scale, and expanding margins, Everpure presents a multi-year compounding opportunity with significant upside optionality if additional hyperscaler adoption materializes.
Previously, we covered a bullish thesis on Pure Storage, Inc. (PSTG) by Magnus Ofstad in March 2025, which highlighted platformization, subscription-led growth, and undervaluation amid conservative guidance. PSTG’s stock price has appreciated by approximately 37.74% since our coverage. Nikhs’s Substack shares a similar view but emphasizes post-earnings acceleration and the shift toward an intelligence-layer storage architecture with hyperscaler-driven margin expansion.
Everpure, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held PSTG at the end of the fourth quarter which was 48 in the previous quarter. While we acknowledge the risk and potential of PSTG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSTG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
