Pure Storage (PSTG) is back in focus after fresh attention on its high-density, power efficient storage platforms and recent recognition by Gartner as a technology leader in enterprise storage.

The recent focus on Pure Storage's role in AI data centers and its recognition by Gartner comes after a choppy period. The latest share price is US$69.01, with a 1 day share price return of 2.98%, a 90 day share price return decline of 21.49%, a 1 year total shareholder return of 6.91%, and a 3 year total shareholder return of about 2.6x.

If this AI storage story has your attention, it could be worth seeing how other tech names stack up using Simply Wall St's high growth tech and AI stocks as a starting point for ideas.

With the shares up about 1.6x over three years but down 21.49% over the past 90 days, the key question now is whether Pure Storage is still mispriced or if the market is already factoring in years of future growth.

Most Popular Narrative Narrative: 27.5% Undervalued

Compared with the last close at US$69.01, the most followed narrative sees fair value much higher, built on a detailed growth and profitability roadmap.

The adoption of Pure's Enterprise Data Cloud architecture and software-defined solutions is accelerating among large enterprises, driven by the need to manage rapidly growing and increasingly valuable data assets in the evolving AI economy. This positions Pure to capture rising long-term revenue from digital transformation and AI/ML-driven workloads. Strategic wins and expanding co-engineering relationships with hyperscalers (e.g., Meta) are creating new high-margin royalty and software revenue streams, and ongoing early-stage engagements with additional hyperscalers signal potential for material upside to revenue and gross margin as cloud infrastructure investments scale.

Want to see what kind of revenue ramp, margin lift, and future earnings multiple are baked into that fair value estimate, and how tightly it all ties back to AI driven workloads and hyperscale demand assumptions? The full narrative lays out the specific growth path behind that valuation call.

Result: Fair Value of $95.16 (UNDERVALUED)

However, this story can shift quickly if Pure Storage struggles to grow cloud style subscriptions as expected, or if hoped for hyperscale contracts take longer to turn into material revenue.

Build Your Own Pure Storage Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a custom Pure Storage narrative in minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Pure Storage.

Looking for more investment ideas?

If Pure Storage interests you, do not stop here. Widening your search now can help you spot other opportunities before they are crowded.

• Scan for potential mispriced opportunities by checking out these 875 undervalued stocks based on cash flows that might fit your return and risk preferences.
• Ride the AI wave more broadly by reviewing these 25 AI penny stocks that could benefit from growing data and compute demand.
• Add some targeted yield ideas to your watchlist by assessing these 14 dividend stocks with yields > 3% that match your income goals.

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.