Oppenheimer initiated coverage on Nutanix (NTNX.US), Pure Storage (PSTG.US), and Rubrik (RBRK.US) on Monday, offering divergent recommendations for these AI data infrastructure players.

**Nutanix** Oppenheimer assigned an "Outperform" rating to Nutanix with a $90 price target, citing three key bullish drivers: 1. **HCI Market Leadership**: Nutanix stands to benefit from enterprises accelerating their shift to hyperconverged infrastructure (HCI), which consolidates traditional server, storage, and networking layers into software-defined solutions. As a pioneer in this space, Nutanix holds a competitive edge. 2. **VMware Substitution Opportunity**: With VMware facing customer backlash over price hikes, Nutanix is well-positioned to gradually capture market share. 3. **AI Readiness**: The company’s ability to leverage surging unstructured data demand for AI applications bolsters its long-term growth prospects.

While acknowledging near-term headwinds like slower federal government spending and delayed virtualization expansion, analysts remain confident in Nutanix’s virtualization/AI inference potential. They also highlighted its consistent outperformance of the "Rule of 40"—a benchmark where software firms’ revenue growth plus profit margin exceeds 40%—which could warrant valuation re-rating.

**Pure Storage** Pure Storage earned an "Outperform" rating and a $120 target, driven by: - **AI-Driven Demand**: Expected growth in unstructured data creation and storage for AI workloads. - **Market Share Gains**: Continued displacement of legacy HDD and rival flash storage providers in the all-flash array (AFA) segment, where Pure holds technological advantages. - **Hyperscaler Expansion**: Success in penetrating tier-1 and tier-2 hyperscale data centers.

Analysts project these factors will fuel new customer acquisitions, existing client expansions, and operating margin improvements.

**Rubrik Inc.** Oppenheimer rated Rubrik "Market Perform," arguing its valuation (~9.5x EV/CY26E sales) already reflects growth prospects. While acknowledging Rubrik’s differentiated products, large addressable market (backup/storage TAM expansion), and strong management, the firm cited intensifying competition in cyber resilience and a balanced risk-reward at current levels.