Meta Platforms (META), formerly known as Facebook, has put the metaverse in focus. Now Meta has turned to data storage leader Pure Storage (PSTG) to help advance artificial intelligence and Meta’s AI Research SuperCluster, which Meta believes will be the fastest AI supercomputer in the world.
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Meanwhile, after gapping up on earnings on March 3, PSTG stock is trying to make a fresh breakout a reality. Although FB stock has yet to recover from its collapse in February, Pure Storage joins the IBD Breakout Stocks Index as it sets up a new buy point.
With a 97 Composite Rating, PSTG stock earns top billing within the data storage group. Industry peers include Smart Global (SGH), NetApp (NTAP), Seagate Technology (STX) and Micron Technology (MU).
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Pure Storage Helping Meta Build World’s Fastest AI Supercomputer
Based in Silicon Valley, Pure Storage helped pioneer the delivery of storage as-a-service. The company enables organizations to run their operations seamlessly across multiple clouds. Clients range from ServiceNow (NOW) and NASA, to Roblox (RBLX) and Domino’s Pizza (DPZ).
In January, Pure Storage and Meta announced a partnership to expedite and expand development of the metaverse, Meta’s next major computing platform. Seen as the next-generation way that people will interact online, AI-driven applications and products play a major role in making the metaverse a ubiquitous reality.
Pure’s product portfolio enables large-scale AI workloads with high-performance, architecturally 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 leveraged by Meta’s AI Research SuperCluster include Pure’s FlashArray//C and FlashBlade.
FlashArray//C is the first all-QLC (quad-level cell) flash array, delivering NVMe (Non-Volatile Memory Express) performance, hyber-consolidation, and simplified data management. FlashBlade is the most advanced all-flash storage solution for consolidating fast file and object data.
Pure Storage Delivers 803% Growth — With More Expected
Over the last three quarters, Pure Storage has delivered average earnings 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 last 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 last five quarters, rising from a 4% decline to a 41% gain in its latest report.
PSTG Stock Rising As FB Stock Seeks Alternate Reality
FB stock continues to sink amid the buzz surrounding AI and the metaverse, although it is trying to establish a bottom. Meanwhile, Pure Storage looks to buck the stock market indexes and break out.
In a sign of market strength during a correction, the relative strength line for PSTG stock has already reached a new 52-week high.
The current buy point is 35.19, but see if the stock forms a handle to offer an earlier entry. Handles take at least five days to form, and Tuesday marked Day 3 of that chart pattern for PSTG.
Look for the indexes 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 gains.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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