Technology firm Pure Storage, Inc. (NYSE: PSTG) is working with the AI researchers of Meta Platforms, Inc. (NASDAQ: FB), which is one of the top social media stocks, to build the world’s fastest AI supercomputer, Research SuperCluster (RSC).
Meta will use Pure Storage’s storage solutions FlashArray and FlashBlade to power RSC to analyze structured and unstructured data. RSC will help Meta build technologies for its computing platform, the metaverse.
The CTO of Pure Storage, Rob Lee, said, “The technologies powering the metaverse will require massively powerful computing solutions capable of instantly analyzing ever-increasing amounts of data. Meta’s RSC is a breakthrough in supercomputing that will lead to new technologies and customer experiences enabled by AI.”
Meta and Pure Storage have been technology partners since 2017 and Pure Storage has helped Meta design the first-generation of AI research infrastructure.
About Pure Storage
California-based storage-as-a-service provider Pure Storage offers all-flash data storage hardware and software products.
After the deal was announced, the company’s shares gained 6.8% on Monday to close at $26.40.
Wall Street’s Take
Following the announcement, Susquehanna analyst Mehdi Hosseini reiterated a Buy rating on the stock with a price target of $40 (51.5% upside potential).
Overall, the stock has a Strong Buy consensus rating based on 14 Buys and 2 Holds. The average PSTG price target of $36.31 implies 37.5% upside potential. Shares have gained 34.4% over the past six months.
According to TipRanks’ Risk Factors tool, Pure Storage is at risk mainly from two factors: Finance & Corporate and Ability to Sell, which account for 37% and 26%, respectively, of the total 54 risks identified for the stock.
Under the Finance & Corporate risk category, the company has 20 risks, and under the Ability to Sell category, there are 14 risks. The details of these risks can be found on the TipRanks website.
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