Goldman Sachs Initiates Buy on NetApp, Cuts HP Rating to Sell
Goldman Sachs has initiated a Buy rating for NetApp and Dell Technologies while downgrading Hewlett Packard to Sell, citing anticipated strong demand for AI infrastructure, particularly in GPU-as-a-service. The firm warns of potential margin pressures from rising DRAM and NAND costs and predicts weaker PC demand in 2026, though it remains optimistic about revenue growth in server and storage sectors due to data center modernization.
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Goldman Sachs restarted coverage of IT Hardware and Distribution companies, issuing a Buy rating for NetApp and Dell Technologies, while downgrading Hewlett Packard to Sell from Neutral. The firm expects strong AI infrastructure demand, particularly in GPU-as-a-service, with some variability.
Higher DRAM/NAND costs are anticipated to affect margins and demand, necessitating selectivity among companies. Goldman predicts weaker PC demand in 2026 but is cautiously optimistic about server and storage revenue growth from data center modernization.
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