Investing.com — Nutanix Inc (NASDAQ:NTNX) shares rose 1.6% on Monday after Guggenheim initiated coverage on the enterprise cloud software provider with a Buy rating and a $100 price target. The firm pointed to sustained market share gains against legacy virtualization rival VMware, alongside emerging catalysts across cloud and artificial intelligence infrastructure.
Analyst Howard Ma argued that Nutanix represents the only viable enterprise-wide replacement for VMware in an essentially two-horse, $12 billion-plus core hyperconverged infrastructure market. VMware’s aggressive price increases and mandatory bundling strategy are accelerating customer migrations, positioning Nutanix to capture broader enterprise compute workloads where its footprint remains in the single digits.
Guggenheim also highlighted growing enterprise adoption of Nutanix Cloud Clusters, aided by elevated on-premise hardware costs that make public cloud economics increasingly…
