$NTAP

NetApp plans to deepen its alliance with SAP, integrating its data infrastructure into SAP Cloud Infrastructure. NetApp's technology already supports SAP's storage architecture, offering file and block storage, proactive protection, and data replication. The partnership aims to expand SAP's cloud footprint globally and meet regional compliance demands. Both companies will explore adding NetApp's object storage to SAP Cloud Infrastructure, pending technical validation.

NetApp (NTAP) shares rose 4% after Guggenheim initiated coverage with a Neutral rating. Analyst Howard Ma expects fiscal 2027 revenue growth of 27% and non-GAAP earnings of $11.50 per share, above consensus. The company's revenue growth has accelerated, driven by higher component costs and AI infrastructure upgrades. Ma remains Neutral due to expected mid-single-digit growth post-fiscal 2028. Shares closed at $223.60, up 3.8%.

Wall Street analysts issued updates on various companies. Upgrades include Lockheed Martin (LMT) to Overweight, Tesla (TSLA) to Overweight, and Roper Technologies (ROP) to Neutral. Downgrades include Block (SQ) to Equal Weight and Equifax (EFX) to Sector Perform. Initiations include FirstEnergy (FE) with Outperform and Lumentum Holdings (LITE) with Buy. Markets saw mixed movements, with tech earnings in focus and Treasury yields rising.

Nebul, a Dutch AI cloud provider, integrates DDN's Infinia OS for faster, cost-efficient GPU inference. Nebul also uses storage solutions from NetApp and VAST Data. DDN claims Infinia offers 10x faster time to first token and 5x faster token responses. Nebul raised €20M in 2024 to expand its European data centers.

Oracle (ORCL) and NetApp (NTAP) have partnered to launch a managed cloud storage service for small and medium-sized enterprises. The service, OCI NetApp Storage Service, combines Oracle Cloud Infrastructure with NetApp’s ONTAP data management to simplify cloud migration and data management for AI and enterprise workloads. The service is expected to be generally available within the next 12 months, offering solutions for data security, high availability, and compliance with regulations.

Truist raised Meta's price target to $1,000, citing AI traction. BofA double-upgraded Salesforce to Buy, expecting AI to boost enterprise platform dependence. Barclays downgraded Dell, HPE, and NetApp due to high valuations. HSBC cut Adobe to Hold over open-source competition risks.

Barclays downgraded Dell, HPE, and NetApp, citing weak enterprise AI spending. Dell fell 11.6%, HPE 5%, and Oracle 9-10%. Barclays cut Dell's target to $574 and HPE's to $77. The downgrades erased billions in market value, with concerns about AI hardware demand and debt financing.

Bank of America upgraded Salesforce (CRM) to Buy, raising its price target to $285, citing AI adoption and strong free cash flow. Barclays downgraded Dell (DELL), HPE (HPE), NetApp (NTAP), HubSpot (HUBS), and monday.com (MNDY) due to AI growth concerns. Deutsche Bank upgraded Walmart (WMT) to Buy, targeting $136, citing inflation benefits. RBC downgraded GoDaddy (GDDY) to Sector Perform, citing AI's impact. MongoDB (MDB) ratings reaffirmed by Needham and BofA.

Several data-center companies, including AirTrunk, Firmus, and SB Energy, postponed or canceled their planned listings. Equity fundraising in the sector is down 4.6 percent year-to-date. Bonds for Meta/Blue Owl’s Hyperion and Blackstone’s QTS project fell below 91 and 87 cents, respectively. CoreWeave’s 2032 bonds traded near 75 cents. Dell, HPE, and NetApp shares dropped following a Barclays note. The Philadelphia semiconductor index fell for the seventh day.

TSMC reported a 70% profit increase, raised its outlook, and cited robust AI demand. Barclays downgraded Dell, HPE, and NetApp, arguing enterprise AI spending has not yet increased significantly. TSMC's growth is driven by hyperscalers, while Dell's revenue may be inflated by higher memory prices. Upcoming cloud provider results and memory price trends are key indicators for AI demand.