SAN JOSE, Calif. - In a move poised to reshape enterprise data management, NetApp (NASDAQ: NASDAQ:NTAP) has announced a partnership with NVIDIA (NASDAQ:NVDA) to integrate advanced generative AI capabilities into its data infrastructure. This collaboration seeks to enhance NetApp's ONTAP unified storage operating system, enabling enterprises to utilize their entire data estate across multiple clouds and on-premises environments more effectively.
The integration combines NetApp's AIPod architecture, ONTAP, and BlueXP control plane with NVIDIA's NeMo Retriever and NIM microservices. These components are part of the NVIDIA AI Enterprise software platform, designed to facilitate the discovery, search, and curation of data while adhering to existing policy-based governance.
Harv Bhela, Chief Product Officer at NetApp, emphasized the importance of data management for AI applications, stating that the partnership will allow AI to securely access and leverage vast amounts of data. Similarly, Manuvir Das, NVIDIA's vice president for Enterprise Computing, highlighted the potential for AI agents to convert data into actionable knowledge.
The integrated solution is certified for NVIDIA DGX BasePOD infrastructure and NVIDIA OVX solutions, managed through NetApp's BlueXP. It aims to streamline data collection and connection to NVIDIA NeMo Retriever, processing datasets for use in enterprise generative AI deployments with appropriate security and privacy measures.
NetApp is also pursuing NVIDIA certification for its ONTAP storage on the AFF A90 platform with NVIDIA DGX SuperPOD, which is expected to enhance data management capabilities for large-scale AI projects.
This announcement comes after a proof-of-concept was presented by NVIDIA's CEO in his GTC 2024 keynote address. The technology preview is slated for release later this calendar year, with a live demonstration available at the NetApp INSIGHT event today.
The partnership underscores NetApp's commitment to providing intelligent data infrastructure solutions that address the challenges of generative AI and large language models, without compromising on data management for AI training workloads.
This news is based on a press release statement from NetApp.
In other recent news, data infrastructure company NetApp has been making significant strides. The company reported an 8% year-over-year increase in revenue for the first quarter of fiscal year 2025, accompanied by record-breaking operating margin and earnings per share. In light of these strong results, NetApp has revised its revenue and profit outlook for the fiscal year upwards.
NetApp also recently expanded its collaboration with Amazon (NASDAQ:AMZN) Web Services to accelerate generative AI efforts and enhance cloud operations. The company's shareholders approved a significant amendment to its 2021 Equity Incentive Plan, aligning it with current compensation governance standards.
Analyst firms have taken note of NetApp's progress. Loop Capital upgraded NetApp's stock from Hold to Buy, while TD Cowen reiterated a Buy rating. In leadership news, Gus Shahin has been appointed as NetApp's Executive Vice President of Business Technology and Operations, while CFO Mike Berry announced his retirement effective at the end of the fiscal year. These are among the recent developments at NetApp.
InvestingPro Insights
As NetApp (NASDAQ: NTAP) takes a significant step forward in enterprise data management through its collaboration with NVIDIA, the company's financial health and market performance provide a backdrop for understanding its capability to innovate and deliver on its strategic initiatives. NetApp's market capitalization stands strong at $25.17 billion, reflecting the company's substantial presence in the technology sector. The company's Price-to-Earnings (P/E) ratio, a measure of its current share price relative to its per-share earnings, is 23.41, with an adjusted P/E for the last twelve months as of Q1 2023 at 22.47, indicating investors' confidence in its earnings potential.
NetApp has also demonstrated a commitment to returning value to shareholders, as evidenced by its consistent dividend payments over the past 12 years. This is complemented by a 1.69% dividend yield as of 2024, pointing to a balance between investing in growth and providing shareholder returns. The company's financial discipline is further highlighted by its moderate level of debt, enabling it to navigate market uncertainties while investing in growth opportunities like the partnership with NVIDIA.
InvestingPro Tips suggest that NetApp is a prominent player in the Technology Hardware, Storage & Peripherals industry, a fact that aligns with its latest move to integrate AI capabilities into its offerings. The company's management has shown confidence in its strategy, as indicated by aggressive share buybacks. Additionally, the optimism among analysts is palpable, with 15 analysts revising their earnings upwards for the upcoming period, which could signal further growth prospects for NetApp.
The InvestingPro platform lists additional InvestingPro Tips that can offer deeper insights into NetApp's performance and outlook. For those interested in a more comprehensive analysis, there are 11 more tips available, providing a fuller picture of the company's financial health and market position.
As NetApp forges ahead with its AI-driven data management solutions, these financial metrics and insights from InvestingPro provide a solid foundation for understanding the company's capacity to succeed in its innovative endeavors.
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