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Pure Storage (PSTG) stock has been treading water lately, with a strong past 3 years but a weaker recent month, so the key question now is whether the pullback opens opportunity.

See our latest analysis for Pure Storage.

That recent slide in the 1 month share price return contrasts sharply with Pure Storage’s strong year to date share price gain and standout multi year total shareholder returns. This suggests long term momentum is intact even as investors reassess near term growth risks at around $73.65.

If Pure’s run has you thinking about what else could benefit from AI driven demand for data, it is worth scanning high growth tech and AI stocks for other potential winners.

With shares still trading at a modest discount to analyst targets despite hefty multi year gains, the real question now is whether Pure Storage remains mispriced by a cautious market or if future growth is already fully baked in.

With the most widely followed narrative placing Pure Storage’s fair value around $95.16 versus a $73.65 last close, the story leans toward sizeable upside potential built on aggressive growth and margin assumptions.

The success of new hardware launches targeting high performance AI and data analytics workloads (e.g., FlashBlade//EXA, FlashArray//XL R5) is capturing share in the most demanding enterprise segments, enabling premium pricing and driving expansion in gross margin and product revenue.

Read the complete narrative.

Want to see what kind of revenue climb, margin lift, and future earnings multiple are being baked into that upside case? The most popular narrative ties those moving parts together into a single, bold valuation roadmap. Curious which assumptions really carry the weight in getting from today’s price to that higher fair value band? Read on and unpack the full set of projections behind this call.

Result: Fair Value of $95.16 (UNDERVALUED)

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

However, the bullish case could unravel if hyperscaler demand scales more slowly than expected and heavy AI infrastructure investment pressures margins instead of lifting them.

Find out about the key risks to this Pure Storage narrative.

If you see things differently or simply prefer digging into the numbers yourself, you can build a personalised narrative in just a few minutes: Do it your way.

A great starting point for your Pure Storage research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Before you move on, lock in your next opportunity by scanning a few focused stock shortlists that could sharpen your edge and broaden your portfolio.

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.

Companies discussed in this article include PSTG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Livingston, N.J. – December 11 – CoreWeave, Inc. (Nasdaq: CRWV), The Essential Cloud for AI™, today announced that Runway, a global AI company building the next frontier of intelligence and human creativity, has signed a contract with CoreWeave to provide AI cloud solutions that will scale and accelerate its next generation video generation models. Runway selected CoreWeave for its purpose-built features and capabilities for AI services, including access to CoreWeave’s AI Cloud platform as well as integrated software and data capabilities to accelerate Runway’s AI models with efficiency and scale.  

Runway is at the forefront of video generation and world models – its tools are used by the world’s leading film studios and production houses, as well as gaming companies, robotics developers and more. The company offers a state-of-the-art suite of AI models for generating and editing images, video, and audio from text, image or video prompts, as well as 3D world models and real-time video models for a wide range of use cases including autonomous driving, life sciences and live avatar interactions. 

“AI is becoming core to how companies build and operate, and they need a cloud platform that can match that shift with performance, efficiency, security and scale. That’s CoreWeave,” said Brian Venturo, Co-Founder and Chief Strategy Officer of CoreWeave. “Runway has established itself as a pioneer in generative video across both the tech industry and Hollywood’s leading creative studios. We’re proud they trust CoreWeave as they continue to scale and innovate across a growing range of industries.” 

“Runway’s models are redefining everything from filmmaking to the training of large-scale simulation engines,” said Anastasis Germanidis, Co-Founder and CTO of Runway. “That level of ambition requires a reliable, scalable AI cloud platform that allows us to accelerate our research and serve a wide range of customers. CoreWeave’s integrated solutions will be key to our ability to research, train and productize with speed and efficiency, and we look forward to unlocking new opportunities through this long-term strategic collaboration.”

Runway will utilize CoreWeave’s NVIDIA GB300 NVL72 systems for large-scale training and inference as well as W&B Models for full observability across their workloads. Runway will also make its models available on W&B Inference, powered by the CoreWeave AI Cloud Platform, and will leverage CoreWeave AI Object Storage, an industry-leading service that makes a single dataset instantly accessible anywhere in the world, without any egress charges or request / transaction fees. Access to these industry-leading solutions will allow Runway to train and run inference on its latest AI models with high-throughput GPU performance that isn’t confined by geography or cloud boundaries. 

CoreWeave’s technology team consistently sets new standards for performance, demonstrated by an industry-leading MLPerf benchmark for AI workloads and its position as the only AI cloud to earn the top Platinum ranking in both SemiAnalysis ClusterMAX™ 1.0 and 2.0, which is considered the definitive rating system for AI cloud performance, efficiency and reliability.