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Is NetApp (NTAP) Falling Behind in the Cloud Data Race?

NetApp Inc. (NASDAQ:NTAP) is one of the worst-performing data center stocks in 2025. While its stock has not declined much (+3.3%), it has also not been able to keep pace with the enthusiasm in the broader data center industry. The company has been facing competition from pure-play cloud providers. However, its hybrid model continues to appeal to enterprises seeking flexibility and cost savings.

Analysts’ views on NetApp currently lean towards the cautious side, with almost two-thirds having a Neutral rating. However, on September 16, TD Cowen analyst John Blackledge reiterated a Buy rating on the stock with an unchanged price target of $130. This rating was issued shortly after the company presented at the Goldman Sachs Communicopia + Technology Conference on September 9.

At the conference, NetApp shared its early results for fiscal 2026. CFO Wissam Jabry said the company is seeing steady growth in all-flash storage, cloud services, and AI. Still, demand in the U.S. public sector and parts of EMEA remains weak.

Management kept its growth forecast at 2% for the next quarter and 3% for the year, with product margins expected in the mid-to-high 50% range. The company is adding senior hires in North America to lift sales and continues to invest in R&D to strengthen its data and cloud offerings.

NetApp Inc. (NASDAQ:NTAP) provides hybrid cloud and data storage solutions for enterprise clients. Its products range from on-premises hardware to cloud software and data management tools.

While we acknowledge the potential of NTAP to grow, 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 this cheapest AI stock.

READ NEXT: Goldman Sachs Value Stocks: 10 Stocks to Buy and 14 Best Precious Metals Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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