NetApp options flow points to straddle as stock hits 52-week high

NetApp's stock skyrocketed to an all-time high on Friday, driven by a combination of analyst commentary, investor enthusiasm, and the unveiling of Novus, a cutting-edge AI storage architecture. Novus boasts an impressive aggregate throughput of over 100 terabytes per second and supports zettabyte-scale file systems, directly addressing the issue of GPU underutilization in AI factory environments.

BofA Securities further fueled the rally by raising its price target for NetApp shares to $220 from $200, while keeping a Neutral rating. This move was backed by the company's formalization of a fully managed cloud storage service compatible with Oracle Cloud Infrastructure, as well as deeper alliances with SAP and Supermicro. NetApp's fiscal first quarter of 2027 was also a record breaker, with non-GAAP earnings of $2.58 per share and revenue of approximately $2.03 billion.

Analysts, with their forecasts shifting over 21% higher in the past month, have become increasingly optimistic about NetApp's role in enterprise AI infrastructure. The broader market's positive sentiment, with the Nasdaq up 1.2% and the S&P 500 adding 0.7%, provided a supportive backdrop for the surge.