Meta Platforms (META), formerly known as Facebook, has put the metaverse in focus. Now Meta has turned to the data storage leader Pure Storage (PSTG) to help advance artificial intelligence and Meta’s AI Research SuperCluster, which Meta believes is the world’s fastest AI supercomputer.
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Meanwhile, after gapping on earnings on March 3, PSTG stocks are trying to make the new breakout a reality. Although FB’s stock has yet to recover from its fall in February, Pure Storage has joined the IBD Breakout Stocks Index as it sets up a new buy point.
At 97 Composite Rating, PSTG stock gets the highest charge within the data storage group. Among the industry associates Smart Global (SGH), NetApp (NTAP), Seagate technology (STX) at Micron technology (MU).
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Pure Storage Helps Meta Build the World’s Fastest AI Supercomputer
Based in Silicon Valley, Pure Storage helped initiate the delivery of storage as a service. The company allows organizations to run their operations seamlessly across multiple clouds. Clients are from Service Today (NOW) and NASA, at Roblox (RBLX) at Domino’s Pizza (DPZ).
In January, Pure Storage and Meta announced a partnership to accelerate and expand the development of metaverse, the next major Meta computing platform. Seen as the next generation way in which people interact online, AI-driven applications and products play a huge role in making the metaverse a ubiquitous reality.
Pure’s product portfolio enables large-scale AI workloads with high-performance, architecture-optimized solutions. The data storage leader enables customers to process massive amounts of data from structured and unstructured sources with speed, reliability, and efficiency. Solutions used by Meta’s AI Research SuperCluster include FlashArray // C and Pure’s FlashBlade.
FlashArray // C is the first all-QLC (quad-level cell) flash array, delivering NVMe (Non-Volatile Memory Express) performance, hyper-consolidation, and simplified data management. FlashBlade is the most advanced all-flash storage solution for fast file and object data aggregation.
Pure Storage Delivers 803% Growth – More Expected
Over the past three quarters, Pure Storage has delivered average revenue growth of 803%. After reporting Q4 and full-year results for fiscal 2022 on March 2, the company has now posted average annual EPS gains of 35% over the past three years.
In its next quarterly report (due in late May), analysts see Pure Storage generating 600% EPS growth.
Sales growth has accelerated over the past five quarters, rising from a 4% decline to a 41% gain in its most recent report.
PSTG Stock Rises As FB Stock Seeks Alternate Reality
FB stock continues to sink amid the buzz surrounding AI and the metaverse. Meanwhile, Pure Storage looks at stock market indices and exits.
At the sign of market strength during the correction, the relative strength line for the PSTG stock has already reached a new 52-week high.
The current buy point is 35.19, but see if the stock forms a hold to offer an earlier entry. Handles take at least five days to form, and Tuesday marked Day 3 of that chart pattern for the PSTG.
Look for indices to flash a follow-through day to launch a new uptrend. And see if Pure Storage can leverage its partnership with Meta and its AI technology to start storing some new benefits.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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