Everpure: AI Storage Uncertainty Overshadows Breakneck Growth

Everpure (NYSE: P), the data storage and management company formerly known as Pure Storage, has seen big ups and downs so far in 2026. Shares were down as much as 18% earlier in the year, before recently being up as much as 26%.

However, those gains quickly faded after the tech company’s latest earnings report. Despite beating and raising, Everpure shares tanked 14.8% in a single day after earnings.

Since then, the stock has continued to slide, putting Everpure shares very close to where they started the year.

The negative reaction partially reflects the high bar set for many AI-driven stocks. However, concerns also linger around the sustainability of Everpure’s very strong financial performance.

Still, at the end of the day, the factors driving these concerns are largely outside the company’s control. In the meantime, Everpure continues to execute well.

Everpure Beats Big, Posts Fastest Growth Since 2022

In its Q1 fiscal year 2027 (FY2027), Everpure reported revenue of $1.05 billion, breaking through the $1 billion mark for the second quarter in a row. (Note that Everpure’s fiscal reporting period is several quarters ahead of the calendar year period.) This resulted in revenue growth of more than 35% year-over-year (YOY), good for the company’s highest growth rate in four years. The figure solidly surpassed expectations near $998 million.

Earnings per share (EPS) came in at 47 cents, rising by 62% YOY and being well ahead of the consensus forecast of 40 cents. Notably, adjusted operating margin saw a huge 450 basis point increase, moving up to 15.1%. Growth in storage product revenue was particularly strong, rising by 55% YOY. Meanwhile, annual recurring revenue from software subscriptions hit $2.04 billion, growing by a healthy 19% YOY. Remaining performance obligations grew considerably faster than total revenue at 41% YOY to $3.8 billion—pointing to an acceleration in demand.

Off the back of these strong results, Everpure significantly increased its full-year guidance. It now projects midpoint sales growth of 21.5%, up 300 basis points from prior estimates. Its adjusted operating income growth guidance moved up even more by 650 basis points to a midpoint of 32.5%. However, tension is arising among investors due to one of the main drivers of these results, which has both positive and negative implications.

Investors Run Scared on Storage Supply Uncertainty

Everpure sells NAND flash-based storage systems and layers software services on top. Currently, the company is benefiting from a revenue perspective due to storage component supply shortages that are driving prices up dramatically. The shortage is so significant that Everpure notes price increases and customer pull-in contributed to nearly one-third of its revenue growth last quarter. Pull-in refers to customers placing orders earlier than they otherwise would have to get ahead of future price increases. However, the company’s gross margins are also taking a hit as it chooses not to raise its own prices as fast as its NAND suppliers. The company notes it is operating at the lower end of its product gross margin range to ease stress on customers. With this, product gross margin fell 180 basis points in one quarter to 65.5%.

However, the larger concern is whether customers could pull back spending if prices rise too significantly in NAND markets. Furthermore, pull-in today can reduce demand tomorrow as customers have already secured the products they need. At the same time, Everpure would have put up over 20% revenue growth without price increases and pull-in. The firm argues that this growth rate alone is a clear signal that it is gaining market share. This indicates that amid a volatile environment, customers are choosing to work with it over competitors. Notably, an over 20% growth rate would still be solidly above its average quarterly growth rate of 14% during the past four years.

Overall, the storage shortage heightens uncertainty in Everpure’s outlook, but the firm’s results point to solid execution amid these circumstances.

Analysts Continue to Support Everpure, Projecting Strong Upside

Despite the negative market reaction to Everpure’s report, analysts generally became more bullish on the stock afterward. MarketBeat tracked more than a handful of price target increases, including a particularly strong move from Guggenheim. The firm raised its target by nearly 10% to $115, making it one of the most bullish analysts tracked by MarketBeat.

The MarketBeat consensus price target for Everpure now sits near $96, implying over 40% upside. The average of targets updated after the report is just slightly lower, near $93. This difference comes as several targets that have not seen updates in some time sit above or near $100, lifting the consensus above the updated average. Nonetheless, analysts are largely demonstrating solid support for the stock.

On balance, Everpure’s outlook is genuinely difficult to forecast given the heightened uncertainty in AI storage markets. Still, with the company showing strength amid this uncertainty and strong analyst support, there remains significant room for optimism going forward.

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This Tech ETF Is Beating QQQ—and Canada May Be Part of the Reason

When thinking about America’s neighbors in the Great White North, maple syrup, hockey, and poutine routinely come to mind. However, Canada's robust and highly sophisticated tech sector may deserve more attention.

While American tech stocks still dominate the financial news cycle and the majority of tech-indexed exchange-traded funds (ETFs), Canada’s tech sector accounts for nearly 6% of its total GDP while employing 2.2 million professionals in the country, with notable hubs in Toronto, Montreal, Ottawa, Waterloo, Calgary, and Vancouver.

Due to its data sovereignty laws, merit-based immigration pathways, and a skilled workforce whose labor costs run 30% to 35% lower than those of its United States counterparts, the country is attracting tech companies, from hyperscalers and data center operators to cloud infrastructure companies and quantum research firms.

This often-overlooked facet of Canada is bearing fruit for those aware of it. The Toronto Stock Exchange’s TSX Composite Index is up nearly 8% this year and more than 30% over the past year. Meanwhile, the S&P 500 has gained less than 8% in 2026 and around 22% over the past year. And, as one ETF is proving, funds that include tech companies from north of the border may be on to something.

Canadian Holdings Offer Targeted International Tech Diversification

Given the iShares North American Tech ETF's (NYSEARCA: IGM) market-cap-weighted orientation, most of the companies in IGM’s portfolio are domiciled in the United States.

However, shareholders gain exposure to Canadian stocks with 1% to 2% of the ETF’s portfolio.

That includes companies like cloud-based e-commerce platform Shopify (NASDAQ: SHOP), Toronto-based electronics manufacturer Celestica (NYSE: CLS), and Montreal-based IT consulting and services firm CGI Group (NYSE: GIB).

Shopify’s struggles this year have been documented, but the stock has rebounded and is up nearly 16% since its YTD low on May 13, which has helped drive the IGM higher. Meanwhile, CLS has gained around 22% in 2026.

Other Canadian holdings include:

• Constellation Software (TSE: CSU): Toronto-based mission-critical software solutions provider

• OpenText (TSE: OTEX): Waterloo-based cloud and enterprise AI company

• Descartes Systems Group (NASDAQ: DSGX): Waterloo-based Cloud-based logistics and supply chain management solutions provider

Because its diversification includes tech and tech-adjacent holdings, the fund can capture cyclical trends across the sector’s industries while insulating shareholders from volatility and downturns that can adversely affect its pure-play positions.

That’s demonstrated by the ETF’s beta of 1.39, underscored by industry allocations of about 39% to semiconductors, around 20% to software, arond 12% to communications equipment, and around 11% to media.

A Tech ETF With a Broader North American Bent

As the IGM has demonstrated, diversifying into tech beyond the United States has proven to be a wise decision.

Despite the most recent tech pullback having impacted companies around the globe, the IGM has still managed to outperform this year. The fund’s year-to-date (YTD) gain of nearly 20% has exceeded that of the Invesco QQQ Trust (NASDAQ: QQQ), the largest ETF tracking the NASDAQ-100 with nearly $468 billion of assets under management (AUM). The QQQ, by comparison, has a YTD gain of around 13%.

Formerly the iShares S&P North American Technology Sector Index Fund, the IGM deliberately captures cross-border tech exposure by including Canadian stocks. But it also embraces a broader definition of tech beyond semiconductors, software, and hardware.

In doing so, the IGM includes mega companies operating in the communication services, industrials, and consumer discretionary sectors. Netflix (NASDAQ: NFLX), for instance, is the ETF’s 13th largest position with a current weighting of 1.75%.

A Moderate Buy Amid Tech’s Ongoing Pullback

With around $10.35 billion in AUM, the fund carries an expense ratio of 0.41%—which is higher than the average for passively managed ETFs—it pays a dividend that currently yields a modest 0.14%, or 21 cents per share annually.

Institutional selling has outpaced buying over the past two quarters, but those $888 million of outflows pale in comparison to the $2.05 billion of inflows the fund saw in just Q3 FY2025. Over the past 12 months, inflows of $2.6 billion have more than doubled outflows of $1.07 billion.

Another encouraging sign for prospective investors is that short interest for the IGM currently stands at a mere 0.17% of the float, or just over 111,000 shares, compared to 66.75 million shares outstanding.

Based on 914 analyst ratings of companies that account for nearly 75% of its portfolio, the iShares North American Tech ETF receives a consensus Moderate Buy rating.

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Intel Is the Market's Most Mispriced AI Hedge

A quiet shift is underway in the global semiconductor landscape. While market-wide macro headwinds punish technology valuations, a foundational realignment of the AI supply chain is taking place. Alphabet Inc. (NASDAQ: GOOGL) has committed to a massive three-million-unit order for its Tensor Processing Units to be manufactured by Intel Corporation (NASDAQ: INTC), a move that validates the chipmaker's ambitious foundry pivot and signals a strategic hedge against geopolitical risk.

This is not a trial run; it is a structural change. For investors, the recent sector-wide sell-off has created a significant valuation disconnect, masking the long-term catalysts now locked into Intel Corporation's future revenue.

Why Alphabet's Pivot Is Intel's Proving Ground

Alphabet Inc.'s 2028 production order is the most tangible proof point yet of Intel Foundry's resurgence. This commitment represents an estimated 50% of Google's projected TPU output for that year, a clear indicator that this is a primary manufacturing allocation, not a secondary experiment. The decision appears driven by two critical factors: technology and geography.

Technologically, Intel Corporation's advanced packaging is hitting key milestones. The Embedded Multi-die Interconnect Bridge (EMIB) technology, crucial for stitching complex chiplets into a single powerful processor, has achieved yield rates above 90%.

This directly challenges the current market leader, Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), whose CoWoS packaging capacity is severely constrained by unprecedented global demand for AI chips. Hyperscalers require volume and reliability, and Intel Corporation's EMIB is now a highly viable, scalable alternative.

The urgency for this diversification is underscored by Alphabet Inc.'s own operational pressures. The Gemini AI platform has seen explosive growth, now serving over 900 million monthly active users. This has stretched Google's internal computing resources to the limit, forcing it to secure auxiliary AI compute capacity from external partners like SpaceX at a reported run rate of $920 million per month. For Alphabet Inc., securing a high-volume, domestic foundry partner is no longer a strategic option but a core operational necessity to manage future growth and costs.

The Hyperscaler Domino Effect Is in Motion

Alphabet Inc.’s latest strategic move is creating a ripple effect across the industry, with other major players now seriously considering Intel Foundry services. This cascading validation is critical, as it signals a broader industry acceptance of Intel Corporation as a legitimate leading-edge manufacturer.

NVIDIA Corporation (NASDAQ: NVDA), the undisputed leader in AI accelerators, is actively evaluating Intel Corporation's 18A process node for a next-generation, multi-die GPU. Success here would be a monumental win for Intel Corporation, breaking into the highest-margin segment of the AI hardware market.

The validation extends beyond traditional tech players. Tesla, Inc. (NASDAQ: TSLA) has committed to Intel Corporation's 14A process for the custom silicon powering its Terafab AI computing complex in Austin. This move by a leader known for demanding extreme performance and supply chain reliability adds another layer of credibility to Intel Corporation's manufacturing roadmap.

The common thread is a strategic imperative among U.S. tech giants to de-risk their supply chains from potential disruptions in Taiwan by onshoring critical chip production. Intel Corporation is emerging as the primary beneficiary of this geopolitical tailwind.

A Valuation Disconnect Screaming Opportunity

Despite these massive, long-term catalysts, Intel Corporation's stock price recently fell 8% in a broad, macro-driven rotation out of the technology sector. This price action is at odds with improving fundamentals. In its Q1 2026 earnings report, Intel Corporation posted revenue of $13.58 billion, handily beating consensus estimates by more than $1.1 billion. The outperformance was driven largely by strength in its Data Center and AI division, the very segment poised to benefit most from the foundry strategy.

The market appears to be mispricing a temporary, inflation-driven sector rotation against a permanent, structural shift in Intel Corporation's business. While the forward P/E ratio of roughly 170X appears stretched, it fails to properly account for the immense multi-year order book being built. The Alphabet deal, combined with potential contracts from NVIDIA and Tesla, provides Intel with a level of forward revenue visibility it has not enjoyed in years.

This situation presents a classic divergence for fundamental investors. The headline financial metrics, such as a trailing net margin of -5.90%, reflect the costly turnaround effort of the past, not the validated production pipeline of the future.

The primary risk remains execution; Intel Corporation must deliver on its process technology promises on schedule and at scale. However, the commitment from exacting customers like Alphabet suggests confidence is building where it matters most: in the engineering clean rooms.

For investors with a multi-year time horizon, the current weakness in Intel Corporation's share price may present a compelling opportunity. The market is reacting to short-term macroeconomic fears, potentially overlooking the fundamental re-architecting of the global semiconductor supply chain that is placing Intel Corporation at the center of America's strategic technological future. Investors might consider adding Intel Corporation to their watchlist, paying close attention to further foundry announcements and progress on its technology roadmap as indicators that the market is beginning to price in this structural shift.

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