Why Wall Street Isn’t Losing Faith in Nutanix (NTNX) Despite Near-Term Noise

Nutanix Inc. (NASDAQ:NTNX) is among the best software infrastructure stocks to buy according to hedge funds. Early last week, RBC Capital lowered its price target on Nutanix (NASDAQ:NTNX) to $65 from $74. While the exact drivers of the lower price target are not known to us at this time, the revision appears to be driven by near-term momentum rather than any shift in underlying long-term conviction, as the firm has maintained its Outperform rating on the stock.

RBC expects 2026 to be a year where clear benefits will be visible for software companies that are structurally positioned to benefit from enterprise AI adoption. On the other hand, those companies that remain exposed to the “AI is the death of software” narrative are expected to lag. The RBC analyst acknowledges that management teams across the sector are entering 2026 with conservative guidance. At the same time, he noted that enterprise spending trends appear to be stabilizing, and GenAI-driven innovation is driving improvements across many areas.

Notably, in an early December report, RBC Capital had noted an increase in merger & acquisition (M&A) activity with software deal volume “up well over 50%” year-to-date compared to last year. Among a list of twenty potential takeover targets, he named Nutanix Inc. (NASDAQ:NTNX) a leading candidate in the infrastructure, security, and analytics space.

Nutanix Inc. (NASDAQ:NTNX) hybrid multi-cloud computing company that offers a single platform for running applications and managing data across clouds.

While we acknowledge the risk and potential of NTNX 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 NTNX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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