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