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Pure Storage Inc. New York Stock Exchange: PSTG is a leading enterprise storage provider specializing in flash-based storage solutions using solid-state drives (SSDs). Their FlashArray is designed for scalable, reliable, low-latency storage and for applications that require high-speed access to huge data sets, such as machine learning (ML), real-time analytics, virtual machines, and high performance computing (HPC). The artificial intelligence (AI) boom has driven demand for faster storage solutions, which falls squarely into the wheelhouse of computer and technology companies. The debut of GenAI modules could be a game-changer for AI adoption and accelerating AI initiatives.

Modernize your storage to prepare for AI deployment

Storage modernization is driving demand for Pure Storage solutions. Data storage has traditionally been highly siled, meaning that data sets are typically stored in different areas for different purposes, such as databases or file storage. To access this data for analytics or artificial intelligence, it needs to be copied into an entirely new area, such as a data warehouse (structured data) or a data lake (unstructured data). The data may become outdated sitting there.

Enterprises need access to actionable data where it actually resides, which has driven demand for new data architecture. This is where Pure Storage comes in, eliminating data silos and providing real-time access to actionable data for AI, machine learning, and analytics workloads.

How Pure Storage addresses the storage modernization trend

Typically, data needs to be copied from one location to a repository (data warehouse or data lake) for use in various applications, such as analytics. This takes time and energy, leading to data duplication and delays, not to mention the fact that the data can quickly become out of date. Pure’s FlashArray provides immediate access to data for real-time analysis without the need to move or copy data. It also uses data reduction technologies such as deduplication and compression to optimize resources. Its FlashBlade platform is designed for high-performance workloads that require extremely fast, parallel access to real-time data. This allows businesses to manage both data at rest (long-term storage) and data in motion, i.e. streaming and real-time data.

Pure Fusion’s storage-as-code system automates enterprise storage provisioning, deployment, and scaling of workloads across your fleet. Enterprises are modernizing their storage architecture to optimize application modernization or prepare for AI deployment.

Pure Storage GenAI modules debut: a one-stop solution for GenAI deployment

Pure Storage GenAI Pods, scheduled to launch in the second half of 2025, are a full-featured solution that allows enterprises to deploy GenAI projects using pre-built projects built on the Pure Storage platform. It is designed to enable companies to quickly work across disparate data platforms and complex GenAI pipelines.

Typically, when companies try to deploy advanced AI systems like GenAI in private clouds, they have to manage a complex mixture of software, hardware, AI models, and development tools that keep the systems running efficiently and cost-effectively. At the same time, companies need a single storage solution that can meet all data storage needs and solve the problem of data silos. This is an expensive and complex undertaking.

Pure Storage GenAI module simplifies the process by providing a ready-to-use, pre-configured platform specifically designed for AI workloads, allowing enterprises to launch AI projects with one click and more easily manage them over time.

It integrates tools like Portworx, which automates deployment NVIDIA Company NASDAQ: NVDA Milvus AI software and vector database to scale AI and simplify operations. Initial industry use cases will include trade research, drug discovery, investment analysis and search-advanced generation (RAG) with gene platforms for chatbots, knowledge management and semantic search. For the initial set of projects, Pure Storage partnered with NVIDIA. Cisco NASDAQ:CSCO, Meta Platforms Inc. NASDAQ: META, Super Micro Computers Inc. NASDAQ: SMCI, Arista Networks Inc. NASDAQ: ANETRed Hat and WWT.

Pure Storage Succeeds Thanks to the Artificial Intelligence Boom

It integrates tools like Portworx, which automates deployment NVIDIA Company NASDAQ: NVDA Milvus AI software and vector database to scale AI and simplify operations. Initial industry use cases will include trade research, drug discovery, investment analysis and search-advanced generation (RAG) with gene platforms for chatbots, knowledge management and semantic search. For the initial set of projects, Pure Storage partnered with NVIDIA. Cisco NASDAQ:CSCO, Meta Platforms Inc. NASDAQ: META, Super Micro Computers Inc. NASDAQ: SMCI, Arista Networks Inc. New York Stock Exchange: ANETRed Hat and WWT.

Forecasts for all of 2025 raised, but cut by 25%

Pure Storage also raised its fiscal third-quarter revenue forecast to $815 million, up from the consensus estimate of $810.54 million. Non-GAAP operating margin is estimated at 17.2%. However, its 2025 revenue guidance missed the consensus estimate of $3.10 billion versus $3.13 billion, while non-GAAP margin is expected to be about 17%. This is what led to the stock falling 25% after this announcement.

PSTG Stock Forms Weekly Descending Triangle Pattern

A descending triangle is a bearish chart pattern consisting of a descending upper trend line representing lower bounce highs and converging with a lower flat-bottomed horizontal trend line representing solid support at the top. A breakout occurs when a stock falls below the support of the lower trend line. A breakout can also occur if the stock breaks the upper resistance line.

PSTG has been in a weekly descending triangle since its swing high at $70.41 in June 2024. Since then, the stock has made lower highs on each bounce, forming a persistent downward trend line. The lower trendline with a flat bottom formed at $45.15 where a double bottom formed. The weekly flat VWAP is $50.86. The weekly RSI is at the 48th band. Fibonacci (Fibonacci retracement support levels are located at $48.58, $46.20, $41.98 and $37.61.

The average consensus price target for PSTG is $67.95which implies a growth potential of 31.53%. and his highest analyst price target is at US$93. It has 14 analyst ratings of “Buy”, seven “Hold” and one “Sell” recommendation. The stock’s short interest is 2.74%.

Actionable Option Strategies: Bullish options investors can buy PSTG stock on pullbacks using cash-backed put options at Fibonacci retracement support levels.

You’ll want to hear this before you consider Pure Storage.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and Pure Storage wasn’t on the list.

While Pure Storage currently has an analyst rating of Moderate Buy, the top-rated analysts think these five stocks are Strong Buys.

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