NetApp (NTAP) Soars 13.1%: Is Further Upside Left in the Stock?

Core Viewpoint - NetApp's stock price surged by 13.1% to close at $86.10, following a significant trading volume and a recent announcement from President Trump regarding a 90-day pause on tariffs with China, which positively impacted market indices and stocks, including NetApp [1][2]. Group 1: Company Performance - The increase in NetApp's share price is linked to the announcement of new capabilities for Google Cloud NetApp Volumes, which enhance performance and reduce complexity for cloud storage workloads, particularly in AI and electronic design automation [2]. - In the fiscal third quarter of 2025, NetApp secured over 100 deals related to AI and data lake modernization, indicating strong demand in its flash business and public cloud segment [3]. - The company is collaborating with major industry players to develop GenAI cloud and on-premises solutions, further expanding its market opportunities [3]. Group 2: Financial Expectations - NetApp is projected to report quarterly earnings of $1.89 per share, reflecting a year-over-year increase of 5%, with revenues expected to reach $1.73 billion, up 3.5% from the previous year [4]. - Despite the positive earnings and revenue growth expectations, the consensus EPS estimate has been slightly revised lower over the past month, which may impact future stock price movements [5]. Group 3: Industry Context - NetApp operates within the Zacks Computer-Storage Devices industry, where another company, Netlist, has seen its stock rise by 8.5% recently, although it has a negative return of -7.9% over the past month [5]. - Netlist's consensus EPS estimate remains unchanged at -$0.02, showing a year-over-year change of +71.4%, but it currently holds a Zacks Rank of 4 (Sell) [6].