AI-focused product launches put NetApp stock in the spotlight

NetApp (NTAP) is drawing fresh attention after unveiling new EF50 and EF80 storage systems, along with its NetApp AI Data Engine co-engineered with NVIDIA and aimed at heavy AI and high performance computing workloads.

The recent product news comes as NetApp’s share price, now at US$102.24, has seen a 3.63% 1 day share price return and an 11.87% 1 year total shareholder return. However, the 90 day share price return of a 9.59% decline suggests momentum has cooled after strong multi year gains.

If NetApp’s AI push has caught your eye, it can be useful to see how other infrastructure names are priced and growing, starting with 33 AI infrastructure stocks

With NetApp trading at US$102.24, showing solid multi year total returns and an indicated 42.65% intrinsic discount, the key question is simple: is this still mispriced value, or is the AI growth story already baked in?

Most Popular Narrative: 13.3% Undervalued

At a last close of US$102.24 versus a fair value estimate of US$117.93, the most followed narrative sees upside still on the table, driven by mix shift and cloud momentum.

Substantial growth in Keystone Storage as a Service (up ~80% year-over-year) and increased deferred revenue (+9% year-over-year) indicate growing preference for subscription-based and as a service storage, supporting higher revenue visibility and margin expansion as mix continues to shift toward high-value services.

Curious what justifies that higher fair value? The narrative leans on steady revenue expansion, firmer margins and a future earnings multiple below many tech peers. The full story is in the detailed assumptions.

Result: Fair Value of $117.93 (UNDERVALUED)

However, higher memory component costs that pressure product margins, along with customer shifts toward public cloud partners, could quickly challenge the idea that current pricing still offers clear value.

Next Steps

If the mix of AI optimism and valuation questions has you on the fence, now is a good time to look under the hood yourself. A helpful place to start is by checking the 5 key rewards

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.