If you need further proof that the market is hypersensitive to AI hype, just look at what happened to NVIDIA’s stock after its latest earnings report on Aug. 28. Revenue exceeded $30 billion in the quarter, blowing past the company’s $28 billion estimate back in May. It more than doubled revenues and profits from a year ago. How did investors respond? By sending NVIDIA (NVDA) stock down by as much as 7% in after-hours trading. Ostensibly, the market punished the AI chip company for some production problems associated with a forthcoming piece of hardware. In reality, anything less than perfect execution will be met with stomach-churning roller coaster drops.
So, it was not surprising on the same day that NVIDIA announced its less-than-perfect results that Pure Storage (PTSG) stock lost more than 15% of its value after the data storage company released its less-than-stellar (but decent-enough) Q2-2025 report. We have been tracking Pure Storage for the last couple of years after looking at the pros and cons of investing in data storage hardware stocks. In our first analysis of Pure Storage stock as a pure play on big data, we found a lot to like about the company. It had surprisingly high gross margins and was shifting to a storage-as-a–service (StaaS) model
