PSTG - 1 Overlooked Stock for a New AI and Cloud Computing Era
2023-09-10 07:00:00 ET
The advent of generative artificial intelligence (AI) in the cloud is changing what the world's data centers look like. Faster computing power is suddenly en vogue, and a new breed of chips (GPUs) are gobbling up market share. Along with faster computing, though, comes the need for more data.
This could land Pure Storage (NYSE: PSTG) on your radar as a potential top beneficiary of advancing computer needs. The company makes digital data storage products. This is a tough market right now, as many data center operators have paused their spending in 2023 to work down existing inventory and revamp their data center designs for generative AI. Nevertheless, Pure Storage is outperforming many of its peers and could be a growth stock for many years to come.
An excess of memory chips and related components started to crop up in late 2022, and that effect is now being exacerbated by data center companies shifting their spend to equipment like Nvidia systems for accelerated computing. As a result, most of the big players in the enterprise-grade data storage market, like Dell and Hewlett-Packard Enterprise , have been reporting declining sales of their storage products.
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1 Overlooked Stock for a New AI and Cloud Computing Era