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    NetApp (NTAP): Reassessing Valuation After Strong Earnings, AI Deal Momentum and New AWS Cloud Integrations

    Simply Wall St·12/05/2025 10:36:34
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    NetApp (NTAP) just checked several key boxes at once, combining upbeat quarterly earnings, stronger AI driven deal flow, and fresh AWS integrated capabilities that collectively prompt investors to revisit the stock’s risk reward profile.

    See our latest analysis for NetApp.

    Those steady results and the new AWS AI integrations are helping sentiment turn after a softer patch. The recent 7 day share price return of 6.17% contrasts with a slightly negative 1 year total shareholder return and much stronger 3 year and 5 year total shareholder returns, suggesting long term momentum remains intact even as shorter term performance has been more mixed.

    If this kind of AI driven infrastructure story has your attention, it is also worth exploring other tech names riding similar trends by scanning high growth tech and AI stocks.

    Yet with the stock still trading below consensus targets and a sizable intrinsic value gap, investors now face a key question: is NetApp an overlooked AI infrastructure compounder, or has the market already priced in the next leg of growth?

    Most Popular Narrative Narrative: 7.2% Undervalued

    With NetApp’s most followed narrative putting fair value modestly above the recent 115.99 closing price, the implied upside rests on steady, compounding fundamentals.

    Substantial growth in Keystone Storage as a Service, up around 80% year over year, and increased deferred revenue, plus 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.

    Read the complete narrative.

    Curious how a measured revenue glide path, firmer margins, and a leaner share count combine into that premium fair value? Read the full breakdown behind this view.

    Result: Fair Value of $125 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, NetApp still faces pressure from declining legacy hardware revenues and intensifying hyperscaler competition, which could cap growth and compress margins if these trends accelerate.

    Find out about the key risks to this NetApp narrative.

    Build Your Own NetApp Narrative

    If you see the story differently or want to stress test the numbers yourself, you can build a personalized NetApp narrative in just a few minutes, Do it your way.

    A great starting point for your NetApp research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more high conviction ideas?

    Before NetApp’s story moves on without you, put Simply Wall St’s powerful screener to work and spot your next opportunity while others stay on the sidelines.

    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.