AI Insights: Why is No One Talking About NetApp?

It turns out that AI chatbots like to recommend AI stocks.

You’ve no doubt heard of Nvidia or Microsoft, but what about NetApp?

NetApp (NASDAQ: NTAP) is a data infrastructure company that operates on the enterprise side, offering a range of services, including data storage, data management, and cloud solutions.

The company has been around since 1992, but doesn’t get nearly the attention of its tech brethren due to its enterprise focus. Still, it may warrant a second look, at least ChatGPT seems to think so, as it’s the latest stock recommendation in our ongoing AI Insights series.

If you’re not familiar with AI Insights, we ask ChatGPT for a stock recommendation on every pick, and we add $100 of the stock to a portfolio we’ll track over the next 12 months.

Once again, this article should not be considered financial advice and should be viewed primarily as an experiment.

Let’s get into it:

ChatGPT Stock Pick of the Week: NetApp (NTAP)

Here’s what ChatGPT had to say this week:

A fresh, timely pick this week is NetApp (NTAP), a profitable enterprise data storage and cloud company with record fiscal 2025 operating metrics and a current Buy rating with a cited price target above the recent price, offering a clear AI‑driven demand angle without mega‑cap premiums.

NetApp (NTAP) at a Glance

Our Take

We haven’t done a huge amount of reporting on NetApp over the last few years, but here’s a quick take from ValueWalk senior news writer Dave Kovaleski:

A couple of points worth noting is that in the most recent quarter, NetApp’s revenue grew only 1% and net income dropped 5% year-over-year. Earnings have grown at about 13% per year over the past five years, which is solid. But its revenue has only grown at an annualized rate of around 3% over the past 5 years. 

NetApp stock has had an average annualized return of 20% over the past 5 years, so it has performed well. It’s only up 1% YTD this year and analysts have a median price of $122.50 per share, which suggests 5% upside over the next 12 months. It is rated a consensus Hold. The stock is reasonably valued with a P/E ratio of 21 and a forward P/E of 15.

While it may not generate headlines like Nvidia or Microsoft, NetApp’s steady profitability and exposure to AI-driven data demand make it an option that’s at least worth considering.

Other AI Stocks Picks this Week

Gemini took a very different direction, focusing more on methodology and less on in-depth research. Here’s the reasoning that Gemini included:

Meanwhile, Gemini was more interested in shipping companies this week:

Gemini Weekly Pick: Danaos Corporation (DAC)

For investors with a medium risk tolerance seeking value, Danaos Corporation (DAC), a container ship owner, is considered a top pick as it trades at a low Price-to-Earnings (P/E) ratio of approximately 3.5x, significantly below its industry average. This valuation suggests the stock is currently undervalued, especially given its exceptional financial stability, a strong consensus “Buy” rating from analysts, and a substantial $3.7 billion contracted revenue backlog providing clear cash flow visibility for the next few years.

How Did Last Week’s Pick Perform?

Last week’s $100 purchase of Micron Technology is now worth $103. Time to break out the champagne. The company actually hit a 52-week high earlier this week so it’s hard to complain about the pick.

In all honesty, it’s way too early to assess the AI Insights portfolio, but it’s currently doing better than our control S&P 500 portfolio (through VTI), which is only up $1.

Currently, the AI Insights portfolio is entirely tech stocks with a heavy emphasis on AI.

Methodology

Every week, we will ask ChatGPT for a stock recommendation after trading has closed on Wednesday.

We created a stock investing space on Perplexity Pro using the GPT-5 model. Here’s the exact guidelines that were provided to the model:

I’m a 30-year-old investor with medium risk tolerance.  I’m planning on buying $100 of a different stock every week. I’d like you to give me recommendations as best you can. I want you to look for the single best value stock every week. Don’t repeat stocks as I’d like to build a diverse portfolio.

Disclaimer: Neither the large language models or ValueWalk suggest actually using this as an investment strategy. This article is for educational purposes only.

Related Articles

Here’s a look at our previous articles in the AI Insights series:

• AI Insights: Is Micron Technology a Hidden Gem?