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Pure Storage stock is moving higher after the company delivered a solid earnings report that included raised guidance for the rest of the year.
The company’s flash memory-based server storage solutions with advanced management software are becoming a complement or alternative to traditional data centers.
Analysts are bidding PSTG stock higher, and there could be as much as 28% upside for the stock. 
5 stocks we like better than Pure Storage
Pure Storage Inc. NYSE: PSTG delivered a stellar first-quarter earnings report after the market closed on May 29, 2024. Not surprisingly, PSTG stock was up more than 2% the day after the report, and analysts are quickly expressing a bullish sentiment that may drive the stock even higher.  
$60.21 -3.04 (-4.81%) (As of 05/31/2024 ET)52-Week Range$27.98▼$68.75P/E Ratio215.04Price Target$66.15
In the quarter, revenue of $693.48 million exceeded estimates for $680.91 by 1.85% and was 18% higher year-over-year (YOY). However, it was the earnings that really got investors excited. The 32 cents per share was 52% higher than the 21 cents per share that was expected. The company’s annual recurring revenue continues to grow at an impressive YOY clip, 25% to be exact.  Get Pure Storage alerts:Sign Up
The company’s forward guidance was also bullish, with estimates for 10.5% revenue growth and operating margin growth of 17% on a non-GAAP basis.   
Where Does All That Data Go? Pure Storage Has an Answer
Even if you’re new to technology, it’s easy to grasp that training AI models requires data. And not just a small amount—these models need vast quantities of data, often on a massive scale.
So, a logical question is, where does all that data go? Pure Storage helps answer that question. The company offers flash memory-based server storage solutions with advanced management software that help companies access AI-driven insights.  
Flash storage is becoming known as the next-gen data center. The technology offers faster access times, improved energy efficiency, greater storage density, and improved reliability compared to traditional data centers. However, the company’s solutions can also work in tandem with a company’s existing data centers.  
Analysts Are Upgrading Their Price Targets for Pure Storage
If the chip sector is the leading edge when it comes to investing in the future of AI, data storage won’t be far behind. Analysts know it, and that’s why they’re getting behind PSTG stock in a big way.  
Wedbush reiterated its Outperform rating for the stock the day before earnings and raised its price target from $50 to $70. Since then, the Pure Storage analyst ratings on MarketBeat show that four analysts have increased their price targets for PSTG stock. That list includes Northland Securities, which downgraded the stock from Outperform to Sector Perform but still raised the target price.  
It’s also significant to note that the lowest of these price targets is 19% higher than the current consensus price target. 
Getting Involved with PSTG Stock 
There are better options if you’re looking for a pure-play among artificial intelligence stocks. But if you’re looking for stocks critical to building out the AI infrastructure, there appears to be more upside in PSTG stock.  

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