These 2 Data-Infrastructure Stocks Merit a Closer Look, Says Oppenheimer

• StockStory Top Pick PSTG -0.46%
• NTNX -1.28%

Enterprises are in the middle of a massive infrastructure overhaul as they rethink how data is stored, managed, and accessed across on-premises environments and the cloud. The rise of hybrid and multi-cloud architectures is reshaping IT budgets, pushing companies to adopt platforms and storage systems that are more scalable, efficient, and software-driven. This shift is creating strong demand for next-generation infrastructure providers – from cloud-agnostic operating platforms to high-performance all-flash storage – as organizations modernize their data foundations to keep up with AI, analytics, and digital transformation.

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According to Precedence Research, the global cloud infrastructure market totaled more than $262.7 billion last year, with the U.S. accounting for $77.5 billion. By 2034, the global market could reach $837.97 billion, while the U.S. portion may grow to $252.12 billion. Those projections reflect a CAGR above 12% and underscore an opportunity for companies positioned to meet this expanding demand.

Oppenheimer’s Param Singh is tracking the key players in the data-infrastructure space and has pinpointed two stocks he views as ‘Buys”. We’ve pulled the broader Street view from the TipRanks database to show how his outlook compares. Let’s dive in.

Nutanix (NTNX)

The first company we’ll look at here is Nutanix, a cloud software company with a leading position in the global market. The company offers its customers a comprehensive, unified cloud platform solution, designed to combine compute, storage, virtualization, and networking, and to manage data across every realm, including on-premises datacenters, public clouds, and edge locations. Nutanix has built its cloud on its HyperConverged Infrastructure (HCI) technology, and it includes flexibility, scalability, and resilience, key features that make cloud systems relevant to all applications.

The upshot of this is that Nutanix’s platform enables users to simplify operations, boost performance, and maintain control. These are key administrative functions, no matter the scale of the enterprise or the complexity of the network. For admins and users, the key advantages of working with Nutanix include modernization of the data center; unifying operations on a single platform; speeding up development and deployment of applications; keeping ops flexible and adaptable; and improving security against data loss and/or cyber threats.

The cloud is at the leading edge of today’s tech world, and some of the largest names in the tech universe are trusting Nutanix’s streamlined platform. Nutanix boasts more than 29,000 customers using its platform and services, and counts such big names as Home Depot, Intel, Red Hat, Palo Alto Networks, AMD, and Commvault in its client list.

Turning to the financial side, we see that Nutanix generated $670.58 million at the top line in its last reported quarter, fiscal 1Q26. That figure was up 13.5% from the prior-year period, but fell short of the forecast by $6 million. At its bottom line, Nutanix reported a non-GAAP EPS of $0.41, in line with expectations.

While shares fell in the aftermath of the earnings release, writing up the Oppenheimer view of Nutanix, analyst Singh sees plenty of reasons for optimism. He says of the company, “Our bullish stance is predicated on our view that Nutanix: (1) is a beneficiary of the industry demand shift toward HyperConverged Infrastructure (HCI); (2) has an opportunity to successfully displace VMware over time, which is facing customer resistance at renewals due to price hikes; and (3) can capitalize on demand for unstructured data for building and delivering AI applications. We are confident in the company’s long-term virtualization/AI inferencing opportunity, despite the recent slowdown in US Federal and a longer than previously anticipated timeline for expansion into standalone virtualization. In addition, we believe NTNX can see its multiple re-rate higher as it continues to exceed the industry metric of ‘Rule-of-40.’”

Singh quantifies his stance on NTNX shares with an Outperform (i.e., Buy) rating, as well as a $90 price target that points toward an upside of 88% in the next 12 months. (To watch Singh’s track record, click here)

This cloud platform software company has picked up 14 recent analyst reviews, and the 12-to-2 split, favoring Buy over Hold, supports the Strong Buy consensus rating. Nutanix shares are currently priced at $47.8 and the $71.17 average target price implies a one-year gain of 32%. (See NTNX stock forecast)

Pure Storage (PSTG)

The second stock to look at is Pure Storage, a company that specializes in developing cutting-edge data storage tech. Pure Storage was founded in 2009, and is known for creating storage solutions that are simple and sustainable, as well as both relevant and scalable to almost any application.

The company offers a wide range of data storage solutions and products. On the cloud side, the company’s chief product is its services-first, AI-capable storage platform. The company’s platform services include virtual block services with both AWS and Azure, Kubernetes data services, and cloud-based cyber recovery. Pure Storage also offers platform management services, including array management and intelligent automated data control. Finally, platform storage gives customers the ability to store data at scale, without limits – perfect for high-performance computing and AI purposes.

The company’s strength is based on its growing position in the data storage niche – and more importantly, the growing importance of secure and flexible data storage in light of the fast expansion of AI tech and applications. More than 13,000 global enterprise customers trust Pure Storage to solve and manage their data storage issues. Even NASA makes use of Pure Storage’s services.

The company’s fiscal 2Q26 report (July quarter) showed a top line of $861 million, for a 13% year-over-year gain and a $14.55 million beat over analysts’ expectations. Subscription services revenue, a key metric for Pure Storage, was up 15% year-over-year and hit $414.7 million. Two metrics that indicate future workloads also showed strong gains: annual recurring revenue, at $1.8 billion, was up 18% y/y, and the remaining performance obligations – the work backlog – were up to $2.8 billion, for a 22% y/y increase.

At the bottom line, Pure Storage realized a non-GAAP EPS of 43 cents per share, beating the forecasts by 5 cents per share. The company had free cash flow in the quarter of $150 million and finished the quarter with $1.5 billion in cash and other available liquid assets. Pure Storage will report FQ3 results tomorrow (December 2) after the market close.

Checking in again with Param Singh, we find the Oppenheimer analyst upbeat on Pure Storage’s combination of relevance to AI and its ability to expand its customer base. He writes, “Our bullish stance is predicated upon our view that Pure Storage is: (1) a beneficiary of rising creation and storage of unstructured data that is used to build and deliver AI applications; (2) a long-term share gainer in the all-flash array (AFA) market, where it has a technological advantage; and (3) expanding its customer base to include tier-1 and tier-2 hyperscalers. We believe these drivers will result in strong new customer additions, existing customer expansion activity, and continued operating margin improvement.”

Singh rates this stock as Outperform (i.e., Buy), which he complements with a $120 price target that indicates room for a one-year upside of 35%.

Pure Storage’s Strong Buy consensus rating is based on 16 recent reviews that include 13 Buys, 2 Holds, and 1 Sell. The stock has a current selling price of $88.96, and its $99.73 average price target implies that it will gain 12% by this time next year. (See PSTG stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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