Nutanix (NTNX) is drawing fresh attention after partnering with Abu Dhabi based Saal.ai to launch SovereignGPT, an AI platform designed for security focused firms that want data to remain within their own infrastructure.

The SovereignGPT announcement comes after a softer quarter that coincided with a roughly 34% share price decline over the past six months. Nutanix now trades at US$53.26 with a 30 day share price return of 12.39%, while the three year total shareholder return of 101.51% contrasts with a 14.66% decline over the past year, suggesting longer term holders have still seen strong gains even as shorter term momentum has cooled.

If this kind of AI focused story has your attention, it could be worth seeing how Nutanix compares with other high growth tech and AI stocks that are also riding the AI infrastructure theme.

With Nutanix trading at US$53.26, recent share price weakness sits alongside solid recurring revenue growth and high margins. This raises a key question for investors: is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 24.7% Undervalued

With Nutanix last closing at US$53.26 against a narrative fair value of about US$70.70, the current pricing sits well below that modeled estimate.

Innovation in AI driven and software defined offerings, including enhanced AI capabilities (GPT in a Box 2.0, Nutanix Enterprise AI), support for external storage, and integrated container management, differentiates the platform in an increasingly data

and automation focused environment. This is described as paving the way for higher gross margins and long term margin expansion.

Want to see what is behind that optimism on margins and growth? The narrative leans on steady revenue expansion, rising profitability, and a future earnings multiple that assumes Nutanix earns a place alongside top tier software platforms. Curious what specific growth path and profit profile have to materialize for that valuation to stack up?

Result: Fair Value of $70.70 (UNDERVALUED)

However, the story can change quickly if public cloud competitors pull more workloads away, or if slower net retention and higher operating costs pressure Nutanix's margins.

Build Your Own Nutanix Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a fresh Nutanix view in minutes: Do it your way.

A great starting point for your Nutanix research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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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.