Why Wall Street Isn’t Losing Faith in Nutanix (NTNX) Despite Near-Term Noise

Group 1 - Nutanix Inc. (NASDAQ:NTNX) is recognized as one of the top software infrastructure stocks favored by hedge funds [1] - RBC Capital has reduced its price target for Nutanix from $74 to $65, indicating a shift in near-term momentum rather than a change in long-term outlook, as the stock retains an Outperform rating [1] - The company is identified as a leading candidate for potential mergers and acquisitions in the infrastructure, security, and analytics sectors, with M&A activity in the software space increasing over 50% year-to-date compared to the previous year [3] Group 2 - RBC anticipates that 2026 will showcase clear advantages for software companies that are well-positioned to benefit from enterprise AI adoption, while those perceived as vulnerable to the "AI is the death of software" narrative may struggle [2] - Management teams in the software sector are entering 2026 with conservative guidance, although enterprise spending trends are stabilizing and GenAI-driven innovations are enhancing various areas [2]