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Wall Street analysts have established a consensus 'Buy' recommendation for data storage provider Pure Storage (PSTG).
Three AI-related firms, GE Vernova, Pure Storage, and Lattice Semiconductor, initiated substantial stock buybacks to signal confidence despite diverging stock performances.
Neurocrine Biosciences and Pure Storage reported strong nine-month revenues of $2.06 billion and $2.6 billion respectively, showcasing growth in the tech sector even as major indexes decline.
Pure Storage (PSTG) has experienced a share price decline of nearly 18% over the last month amid a wider market rotation away from technology stocks. Despite this, Discounted Cash Flow (DCF) models and analyst consensus point to potential undervaluation, suggesting the pullback may represent a disconnect from fundamental value.
Pure Storage (PSTG) stock fell 27% despite meeting earnings expectations after the company announced plans to reinvest AI-related revenue into R&D, negatively impacting its 2027 profit margin forecast. The move highlights a discerning market that is closely scrutinizing the high cost and long-term payoff of corporate AI strategies.