NetApp, Inc. (NTAP) Target Lowered to $110 Amid Hardware Valuation Shift

We recently published an article titled 12 Best Data Storage Stocks to Buy Right Now.

On February 17, Citi analyst Asiya Merchant reduced the price target on NetApp, Inc. (NASDAQ:NTAP) to $110 from $125 while maintaining a Neutral rating, reflecting broader valuation adjustments across the hardware and storage sector amid mixed end-demand commentary.

NetApp, Inc. (NASDAQ:NTAP) reported second-quarter revenue of $1.71 billion, representing 3% year-over-year growth, or 4% excluding the divested spot business. The company closed approximately 200 artificial intelligence infrastructure and data lake modernization transactions, demonstrating traction in AI-driven workloads. Keystone storage-as-a-service revenue grew 76% year over year, and public cloud revenue increased 18% year over year, excluding the spot business. The strength in AI infrastructure, consumption-based offerings, and hybrid cloud services highlights the company’s strategic pivot toward higher-growth segments, supporting recurring revenue expansion and long-term margin resilience despite near-term macro variability.

NetApp, Inc. (NASDAQ:NTAP), founded in 1992 and headquartered in San Jose, California, provides intelligent data infrastructure solutions, including unified storage, hybrid cloud data services, and ONTAP-based data management software for enterprise customers.

While we acknowledge the potential of NTAP as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.

Disclosure: None.