We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nebul Picks NetApp Novus: Why It Matters for NTAP's AI Growth
Read MoreHide Full Article
Key Takeaways
NetApp gains its first neocloud customer for Novus as Nebul adopts its AI storage architecture.
Novus delivers 100 TB per second of throughput, reducing storage bottlenecks and improving GPU utilization.
Nebul's sovereign Intelligent Cloud targets data sovereignty needs, while competition pressures pricing.
NetApp, Inc. (NTAP - Free Report) is strengthening its position in the rapidly expanding AI infrastructure market as Nebul, a European AI-native cloud provider, adopts its newly launched NetApp Novus architecture. Nebul is the first neocloud provider to adopt Novus, underscoring growing demand for high-performance storage solutions that support large-scale AI workloads. With Novus designed to deliver aggregate throughput of up to 100 TB per second, NetApp is targeting the pressing infrastructure challenge of keeping increasingly powerful GPU clusters fully utilized through high-speed, scalable data access, a key need for the AI industry.
NetApp Novus addresses these challenges with a high-performance architecture designed for modern AI factories. Its disaggregated design lets storage performance, capacity and concurrency scale independently, while a single namespace simplifies data management. It also integrates NetApp’s ONTAP capabilities for security, data protection and governance. By giving GPUs faster, more reliable data access, Novus helps reduce storage bottlenecks, improve GPU utilization and boost operating efficiency for neocloud providers offering GPU-as-a-Service.
Another key aspect of this announcement is its focus on sovereign AI. As organizations increasingly deploy AI applications, data sovereignty is becoming a critical infrastructure requirement. Governments, healthcare providers, financial institutions and biotechnology companies often operate under strict regulations governing where sensitive information can be stored, accessed and processed. Public cloud infrastructure does not always provide the level of jurisdictional control or customization these organizations require. Nebul's sovereign Intelligent Cloud, combined with NetApp's ONTAP-powered infrastructure, aims to address this challenge.
Nonetheless, NetApp competes with larger infrastructure vendors and storage specialists that refresh products and bundle broader technology stacks. Competition from companies such as Dell Technologies (DELL - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) constrain pricing and lengthen sales cycles in all-flash and cloud-adjacent storage.
How Does NTAP Stack Up Against Its Peers?
HPE is benefiting from a broader shift toward AI infrastructure, networking modernization and hybrid cloud, with Juniper expanding its addressable market and integration synergies supporting earnings growth. In October, HPE integrated its EdgeConnect, HPE Mist and Aruba Central platforms under a unified AI-powered framework to improve network visibility, automate troubleshooting and optimize application performance and security from edge to cloud. HPE also announced that Mzansi Mind selected its AI-optimized servers and networking solutions powered by NVIDIA to support its sovereign AI platform, enabling multilingual AI applications and agentic AI services across South Africa. For fiscal 2027, management raised its revenue growth framework to 13-17%.
Dell is benefiting from broad AI and data-center infrastructure demand as customers secure capacity and modernize systems. In the fiscal second quarter, Dell booked $60.9 billion of AI orders, taking bookings to $131.7 billion over the prior 12 months, while AI backlog reached $95 billion. In October, Dell introduced new cybersecurity and resilience capabilities designed to protect enterprise AI environments, identity systems and critical infrastructure. The enhancements include Security Hardening for Dell AI Factory, Resilience Operations for AI and expanded PowerProtect AI Assistant capabilities. Dell also expanded its Dell AI Factory with NVIDIA portfolio, bringing new agentic AI solutions, validated deployment frameworks and purpose-built infrastructure.
View the Zacks #1 Rank List
Image: Shutterstock
Nebul Picks NetApp Novus: Why It Matters for NTAP's AI Growth
Key Takeaways
NetApp, Inc. (NTAP - Free Report) is strengthening its position in the rapidly expanding AI infrastructure market as Nebul, a European AI-native cloud provider, adopts its newly launched NetApp Novus architecture. Nebul is the first neocloud provider to adopt Novus, underscoring growing demand for high-performance storage solutions that support large-scale AI workloads. With Novus designed to deliver aggregate throughput of up to 100 TB per second, NetApp is targeting the pressing infrastructure challenge of keeping increasingly powerful GPU clusters fully utilized through high-speed, scalable data access, a key need for the AI industry.
NetApp Novus addresses these challenges with a high-performance architecture designed for modern AI factories. Its disaggregated design lets storage performance, capacity and concurrency scale independently, while a single namespace simplifies data management. It also integrates NetApp’s ONTAP capabilities for security, data protection and governance. By giving GPUs faster, more reliable data access, Novus helps reduce storage bottlenecks, improve GPU utilization and boost operating efficiency for neocloud providers offering GPU-as-a-Service.
Another key aspect of this announcement is its focus on sovereign AI. As organizations increasingly deploy AI applications, data sovereignty is becoming a critical infrastructure requirement. Governments, healthcare providers, financial institutions and biotechnology companies often operate under strict regulations governing where sensitive information can be stored, accessed and processed. Public cloud infrastructure does not always provide the level of jurisdictional control or customization these organizations require. Nebul's sovereign Intelligent Cloud, combined with NetApp's ONTAP-powered infrastructure, aims to address this challenge.
Nonetheless, NetApp competes with larger infrastructure vendors and storage specialists that refresh products and bundle broader technology stacks. Competition from companies such as Dell Technologies (DELL - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) constrain pricing and lengthen sales cycles in all-flash and cloud-adjacent storage.
How Does NTAP Stack Up Against Its Peers?
HPE is benefiting from a broader shift toward AI infrastructure, networking modernization and hybrid cloud, with Juniper expanding its addressable market and integration synergies supporting earnings growth. In October, HPE integrated its EdgeConnect, HPE Mist and Aruba Central platforms under a unified AI-powered framework to improve network visibility, automate troubleshooting and optimize application performance and security from edge to cloud. HPE also announced that Mzansi Mind selected its AI-optimized servers and networking solutions powered by NVIDIA to support its sovereign AI platform, enabling multilingual AI applications and agentic AI services across South Africa. For fiscal 2027, management raised its revenue growth framework to 13-17%.
Dell is benefiting from broad AI and data-center infrastructure demand as customers secure capacity and modernize systems. In the fiscal second quarter, Dell booked $60.9 billion of AI orders, taking bookings to $131.7 billion over the prior 12 months, while AI backlog reached $95 billion. In October, Dell introduced new cybersecurity and resilience capabilities designed to protect enterprise AI environments, identity systems and critical infrastructure. The enhancements include Security Hardening for Dell AI Factory, Resilience Operations for AI and expanded PowerProtect AI Assistant capabilities. Dell also expanded its Dell AI Factory with NVIDIA portfolio, bringing new agentic AI solutions, validated deployment frameworks and purpose-built infrastructure.
NTAP Price Performance, Valuation & Estimates
Shares of NetApp have lost 23.4% in the past month compared with the Computer-Storage Devices industry’s decline of 33.2%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, NTAP is trading at 24.06, significantly higher than the industry’s multiple of 8.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NTAP’s earnings for fiscal 2027 has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
NTAP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.