Nutanix expands AI capabilities with NVIDIA integration

WASHINGTON - Nutanix (NASDAQ: NTNX), a $19.42 billion market cap company specializing in hybrid multicloud computing, has introduced the latest iteration of its Nutanix Enterprise AI (NAI) solution, now generally available. The company, which boasts impressive gross profit margins of 85.84% and has shown strong revenue growth of 14.82% over the last twelve months, continues to strengthen its position in the enterprise AI market. According to InvestingPro analysis, Nutanix maintains a healthy financial position with good overall financial health scores. The new release features enhanced integration with NVIDIA AI Enterprise, including NVIDIA NIM microservices and the NVIDIA NeMo framework, aimed at facilitating the deployment of Agentic AI applications within enterprises.

The updated NAI solution is designed to simplify the process for customers to develop, execute, and securely manage AI models and inferencing services across various environments, including the edge, data centers, and public clouds. This is achievable within any Cloud Native Computing Foundation-certified Kubernetes environment. The enhancement introduces a shared model service methodology that streamlines agentic workflows and simplifies deployment and management.

Nutanix’s latest NAI version also offers a centralized Large Language Model (LLM) repository that creates secure endpoints, easing the connection between generative AI applications and agents. This update is part of Nutanix’s ongoing effort to help customers keep pace with the rapid advancements in the generative AI market.

The integrated NVIDIA AI Enterprise software components, such as NVIDIA NIM microservices and NVIDIA NeMo, provide a foundation for building and managing AI agents securely and efficiently. The NAI for agentic applications allows customers to deploy AI applications with shared LLM endpoints, leverage a wide array of LLM endpoints, and support generative AI safety through guardrail models that align with organizational policies.

Furthermore, the Nutanix Cloud Platform, in conjunction with the NVIDIA AI Data Platform, offers a solution that integrates Nutanix Unified Storage and Nutanix Database Service for handling unstructured and structured data for AI. The platform, as an NVIDIA-Certified Enterprise Storage solution, delivers software-defined storage optimized for enterprise AI workloads.

Industry analysts recognize the importance of such partnerships and the benefits they bring to organizations, emphasizing the need for optimized infrastructure, control, and security to fully harness the potential of generative AI. Want deeper insights into Nutanix’s AI strategy and financial outlook? InvestingPro offers exclusive analysis through its comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.

For more information on the capabilities and applications of the latest NAI version, Nutanix directs interested parties to its latest blog post. This announcement is based on a press release statement from Nutanix. With the company’s strong financial metrics and strategic AI initiatives, investors seeking detailed analysis can access additional ProTips and comprehensive financial metrics through InvestingPro, which currently indicates the stock may be trading above its Fair Value.

In other recent news, Nutanix reported strong financial results for the second quarter of fiscal year 2025, surpassing revenue expectations with $655 million, compared to the projected $641.5 million. The company also reported an earnings per share (EPS) of $0.46, slightly below the forecast of $0.47. Analysts from RBC Capital, Piper Sandler, Needham, and Raymond James responded positively to Nutanix’s performance by raising their price targets for the company’s stock. RBC Capital increased its target from $83 to $95, highlighting Nutanix’s accelerated Annual Recurring Revenue (ARR) growth and new customer acquisitions. Piper Sandler raised its target to $88 from $83, citing strong performance indicators and potential free cash flow upside. Needham adjusted its target to $92 from $90, noting the company’s effective execution and exceeding of guided metrics. Raymond James increased its target from $76 to $83, reflecting confidence in Nutanix’s market share gains from VMware and its strategic positioning. These developments underscore Nutanix’s robust market performance and optimistic outlook from analysts.

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