As global connectivity advances, the integration of wireless technologies like cloud computing is becoming more seamless. Once considered niche, these tech sectors are now gaining prominence in the stock market, driven by the rising demand for off-device computing. With artificial intelligence and large language models increasingly embedded in everyday devices, next-gen cloud stocks are emerging as potentially lucrative long-term holdings.

In this evolving landscape, companies like Nutanix, Inc. (NTNX - Get Rating), Informatica Inc. (INFA - Get Rating), and Harmonic Inc. (HLIT - Get Rating) are well-positioned to benefit from the increasing reliance on cloud technology.

In 2024, global cloud infrastructure spending grew by 20%, reaching $321.30 billion, and it is expected to grow another 19% in 2025. This rapid expansion is fueled by companies investing heavily in hybrid cloud environments, AI-driven cloud services, and scalable infrastructure. Analysts predict that 90% of organizations will adopt hybrid cloud strategies by 2027, highlighting the growing need for seamless data synchronization and integration across different platforms.

Moreover, Gartner, Inc. (IT - Get Rating) forecasts that worldwide end-user spending on public cloud will reach $723.40 billion in 2025, reflecting an increase of 21.4% year-over-year. With demand accelerating and technology evolving, companies that can adapt to the next wave of cloud innovation stand to benefit the most.

With that in mind, let’s take a look at the fundamental aspects of the three cloud disruptors in detail:

Nutanix, Inc. (NTNX - Get Rating)

NTNX is engaged in providing an enterprise cloud platform. The company offers a hyper-converged infrastructure software stack that converts virtualization, storage, and networking services into a turnkey solution, Acropolis Hypervisor, flow virtual networking and flow network security, automating common network operations, building virtual private networks, etc.

On November 12, 2024, the company expanded its AI infrastructure with Nutanix Enterprise AI (NAI), a cloud-native solution deployable across Kubernetes platforms, from edge locations to major cloud services like AWS, Azure, and Google Cloud. NAI provides a unified hybrid multi-cloud environment for AI workloads, allowing businesses to run models securely while optimizing ROI.

By integrating NVIDIA NIM, NAI enhances LLM performance, enabling faster and more efficient deployment of generative AI (GenAI) applications. This move strengthens NTNX’s AI infrastructure and expands its market reach.

For the fiscal 2025 second quarter that ended January 31, 2025, NTNX’s total revenues increased 15.8% year-over-year to $654.72 million, while its gross profit rose 17.7% from the year-ago value to $569.43 million. The company’s non-GAAP income from operations stood at $161.29 million, up 30.2% year-over-year. Also, its non-GAAP net income amounted to $165.13 million or $0.56 per share, indicating an increase of 21.1% and 21.7%, respectively, from the same period last year.

Street expects NTNX’s revenue for the third quarter (ending April 2025) to increase 19.3% year-over-year to $625.93 million. Its EPS for the ongoing quarter is expected to register a growth of 35.2% from the prior-year period, setting at $0.38. Moreover, the company topped the EPS and revenue estimates in each of the trailing four quarters, which is promising.

Over the past six months, the stock has gained 43.9% to close the last trading session at $76.54.

NTNX’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has an A grade for Growth and Quality and a B for Sentiment. In the 126-stock Software – Application, it is ranked #11. Click here to see NTNX’s ratings for Value, Momentum, and Stability.

Informatica Inc. (INFA - Get Rating)

INFA develops an AI-powered platform that connects, manages, and unifies data across multi-cloud, hybrid systems at an enterprise scale in the United States. The company’s platform includes a suite of interoperable data management products, as well as API and application integration products.

On January 14, 2025, INFA announced new advancements in its partnership with Databricks. The collaboration now includes deeper integration between Informatica’s Intelligent Data Management Cloud (IDMC) and the Databricks Data Intelligence Platform.

Moreover, Informatica’s Native SQL ELT now supports AI Functions on Databricks, enabling no-code data pipelines to run natively. This partnership focuses on helping businesses develop enterprise-grade GenAI applications using high-quality, governed data in a deep industry context.

In the same month, the company expanded its partnership with Google Cloud by launching its Cloud Data Governance and Catalog (CDGC) on Google Cloud Marketplace. Built on IDMC, CDGC enhances data classification, governance, and cataloging for Google Cloud customers.

This expansion supports AI-driven analytics, including INFA’s Gen AI Blueprint for Vertex AI and Gemini models, allowing organizations to manage and maximize their data assets securely.

INFA’s total revenues amounted to $365.43 million in the fourth quarter (ended December 31, 2024), while its gross profit came in at $348.37 million. Its non-GAAP income from operations increased marginally from the year-ago value to $162.30 million. The company’s non-GAAP net income amounted to $128.60 million and $0.41 per share, indicating an increase of 32.2% and 28.1% year-over-year, respectively.

The consensus revenue estimate of $393.42 million for the fiscal first quarter (ending March 2025) represents a 1.2% increase year-over-year. The consensus EPS estimate of $0.24 for the same period indicates a 7% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.

However, the stock has lost 22.6% over the past month to close the last trading session at $19.32.

INFA’s bright prospects are reflected in its POWR Ratings. It has an overall rating of B, which equates to Buy in our proprietary rating system.

It also has a B grade for Growth, Value, and Quality. Among 18 stocks in the A-rated Software – SAAS industry, it is ranked #6. Click here to see the other INFA ratings for Momentum, Stability, and Sentiment.

Harmonic Inc. (HLIT - Get Rating)

HLIT provides virtualized broadband and video delivery solutions, enabling media companies and service providers to deliver global video streaming and broadcast services to consumers. It offers broadcast and streaming video services to consumer devices, including televisions, personal computers, laptops, tablets, and smartphones. It operates through two segments: Video and Broadband.

On February 10, 2025, HLIT announced that its VOS360 Media SaaS and VOS360 Ad SaaS are now qualified on Akamai, enhancing video streaming and broadcast workflow efficiency. VOS360 will also power Akamai Media Services Live 5, improving live event broadcasting.

On December 9, 2024, the company partnered with Sercomm to advance DOCSIS 4.0 unified technology. Sercomm will launch DOCSIS 4.0 Unified Amplifiers as part of this collaboration, incorporating HLIT’s expertise in Full Duplex (FDX) and unified node technology.

This will improve network performance, interoperability, and scalability, allowing service providers to seamlessly transition to DOCSIS 4.0 with faster, more reliable deployments and reduced integration complexities.

During the fiscal fourth quarter, which ended on December 31, 2024, HLIT’s total net revenue increased 32.9% year-over-year to $222.17 million. Its gross profit amounted to $124.65 million, up 52.3% year-over-year. The company’s income from operations increased to $52.87 million from the year-ago value of $9.63 million. Also, its net income for the period stood at $38.12 million or $0.32 per share.

Analysts expect HLIT’s revenue for the fiscal first quarter (ending March 2025) to grow 4.5% year-over-year to $127.51 million, while its EPS for the same period is estimated to be $0.05. Moreover, it topped the revenue and EPS estimates in each of the trailing four quarters.

HLIT shares have declined 11.4% over the past month to close the last trading session at $10.24.

It’s no surprise that HLIT has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Growth and a B for Quality. Out of 47 stocks in the B-rated Technology – Communication/Networking industry, HLIT is ranked #15.

Beyond what is stated above, we’ve also rated HLIT for Value, Momentum, Stability, and Sentiment. Get all HLIT ratings here.

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NTNX shares fell $0.05 (-0.07%) in premarket trading Friday. Year-to-date, NTNX has gained 25.11%, versus a -0.18% rise in the benchmark S&P 500 index during the same period.

About the Author: Shweta Kumari

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...

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