Low-angle view of sign with logo on facade of technology company Pure Storage in the Silicon Valley town of Mountain View, California, October 28, 2018.shares rallied after announcing a contract with an unnamed "top four" AI hyperscaler in tandem with its fiscal third-quarter results.The data storage management company topped Wall Street's estimates and offered up strong fourth-quarter guidance. Pure Storage also upped its previously forecasted full-year outlook." on Tuesday.
Piper Sandler upgraded shares to an overweight rating following the results. Shares are already up about 50% this year as investors seek out alternative methods to playing artificial intelligence trends and companies search for new ways to manage AI's data-heavy needs. "Hyperscaler interest in flash creates a secular tailwind for the space, as these vendors have historically represented 60-70% of shipments," wrote James Fish. "AI throws 'gas on the fire' for utilizing" its storage operating system.