Most of the media hype goes to Nvidia, Broadcom, Google and the other major AI plays. We dug deeper into billionaire Ray Dalio’s Bridgewater Associates Q2 13F filings to see what new AI stocks the fund was buying.
ServiceNow, Inc. (NYSE:NOW) was one of them. Bridgewater opened a position of about 635,000 shares worth roughly $63 million, a 0.26% portfolio weight. Nutanix, Inc. (NASDAQ:NTNX) was the other. The fund bought about 999,000 shares worth roughly $51 million, a 0.21% weight.
NOW regularly gets the limelight in the media, so let’s focus on NTNX. The stock is down 11% over the past year.
Nutanix ended fiscal 2026 with recurring revenue of $2.55 billion, up 16%, and added more than 3,000 new customers during the year.
Why Nutanix’s business can keep growing
Nutanix wins customers because it lets them switch without throwing away hardware they already paid for. Servers are expensive and hard to get. The company is adding support for storage systems from Dell, EverPure, NetApp and Lenovo, so a customer can move to Nutanix and keep the storage arrays sitting in their data center. Management said external storage support drove several seven-figure deals in the fourth quarter and expects it to be the largest single growth contributor in fiscal 2027.
Another growth driver is coming from Broadcom. Broadcom bought VMware and raised prices and changed licensing terms, and a lot of customers went looking for somewhere else to go. Nutanix has been taking that business.
Ray Dalio of Bridgewater Associates
Risks and Valuation
Growth is showing signs of a slowdown. Nutanix revenue grew 18% in fiscal 2025, 12% in fiscal 2026, and guides to 12% again in fiscal 2027. Server shortages are the main operational problem, and management expects them to last all of fiscal 2027. High prices and long lead times push customers to shrink or delay projects.
The stock trades around 29 times forward earnings against a technology sector median near 22, and enterprise value to sales sits at about 5.3 against a sector median of 3.5.
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