NTAP Stock Up 14.8% in 3 Months Can AI Momentum Keep It Climbing?

NTAP shares climbed 14.8% over three months, fueled by record all-flash revenue growth of 46.6% and approximately 350 new AI and data lake modernization deals. The company beat Q1 earnings expectations and raised its fiscal 2027 revenue guidance to $7.975-$8.225 billion, with earnings per share projected at $9.73-$10.03.

The storage specialist's surge comes as enterprises accelerate infrastructure spending to support AI workloads and modernize data architectures. All-flash arrays, which deliver faster data access than traditional storage, posted their strongest growth on record at 46.6%, signaling sustained demand for performance-critical infrastructure.

NetApp secured roughly 350 deals focused on AI and data lake projects in the quarter, underscoring the company's positioning in two of the fastest-growing segments of enterprise IT spending. The upward guidance revision suggests management expects the pipeline to convert into sustained revenue growth through fiscal 2027.

Headwinds remain. Margin pressures from rising component costs threaten profitability, and timing risks around customer deployment schedules could slow revenue recognition. Both factors introduce execution risk to the bullish thesis.