NetApp Expands AI Reach as European Cloud Provider Nebul Adopts Novus
Nebul has adopted NetApp's new Novus storage architecture for sovereign AI workloads. Meanwhile, Wall Street analysts maintain a consensus Moderate Buy rating on the company.
NetApp, Inc. is expanding its footprint in artificial intelligence infrastructure. Nebul, a European AI-native cloud provider, has become the first neocloud vendor to adopt the newly released NetApp Novus storage architecture. The setup delivers an aggregate throughput of up to 100 TB per second and aims to help prevent bottlenecks in GPU clusters through high-speed, scalable data access. It integrates NetApp's ONTAP tools for security and data governance to assist organizations operating under strict data sovereignty rules.
The push into modern AI workloads comes as NetApp faces pressure from larger competitors, including Dell Technologies and Hewlett Packard Enterprise, which bundle broad technology stacks that can lengthen sales cycles and restrict pricing. Even so, NetApp has shown steep recent share price drops. Yahoo Finance reported that the company's shares returned -17.6% over the past month, while TradingView reported a 23.4% decline over the same time frame. Both reports noted that NetApp's industry peer group dropped more than 30% in that span.
Despite recent market weakness, equity analysts remain generally constructive on the stock. MarketBeat reports that 22 research firms give NetApp a consensus Moderate Buy rating, consisting of one strong buy, 11 buy ratings, and 10 hold ratings. The average 12-month target price stands at $205.24. Meanwhile, Zacks Investment Research carries a Rank #3 (Hold) rating on NetApp, pointing to unchanged earnings estimates over the last 30 days.
For the current quarter, Zacks consensus estimates predict earnings of $2.60 per share, representing a 26.8% increase from the prior year. Full-year earnings are projected at $10.05 per share by Zacks, although sell-side figures tracked by MarketBeat anticipate 8.32 earnings per share for the current fiscal year. For fiscal 2027, NetApp management previously provided earnings guidance of 9.730 to 10.030 per share.
Third-quarter filings also reveal substantial shifts among institutional holders and insiders. Beutel Goodman & Co Ltd. trimmed its stake by 38.0%, offloading 732,379 shares, while Bahl & Gaynor LLC cut its holdings by 44.4%, selling 143,279 shares. Over the past three months, corporate insiders have sold 172,524 shares valued at $34,824,306, leaving insider ownership at 0.36%.