What happened when Broadcom acquired VMware and how does it affect Nutanix?

Broadcom's VMware acquisition: Broadcom (AVGO) completed its acquisition of VMware in November 2023 for approximately $69 billion. Broadcom's strategy post-acquisition: Broadcom's playbook for software acquisitions is to cut costs aggressively, eliminate lower-tier products, focus on large enterprise customers, and significantly increase pricing for remaining products. VMware-specific changes: Broadcom moved VMware to subscription-only licensing (eliminating perpetual licenses), dramatically increased prices (many enterprises reported 2-5x price increases on renewal), eliminated many of VMware's smaller product SKUs (e.g., VMware Fusion for Mac users — made free), and shifted focus to large enterprises rather than SMBs. Enterprise reaction: thousands of enterprises began evaluating VMware alternatives for the first time; Nutanix became the primary alternative for private cloud HCI (replacing vSAN + vSphere with Nutanix AOS + AHV); Microsoft Azure Stack HCI gained interest for enterprises wanting cloud integration; Red Hat OpenShift (IBM) gained share in container workloads. Nutanix's opportunity: Nutanix management estimates that VMware price increases created a $15-20B+ displacement opportunity; Nutanix began winning competitive deals with enterprises migrating from VMware vSAN and vSphere; Nutanix's Broadcom displacement win rate improved significantly in 2024-2025; the long-term revenue opportunity is significant if Nutanix captures even a modest fraction of the VMware installed base.

What is HPE GreenLake and how does the as-a-service model work?

HPE GreenLake is Hewlett Packard Enterprise's cloud services platform that brings cloud economics (consumption-based pricing, flexibility, no capital expenditure) to on-premises and co-location data centers. Traditional enterprise IT procurement: enterprises buy servers, storage, and networking equipment as capital expenditures; they typically buy for peak capacity needs (resulting in underutilization most of the time); hardware assets require ongoing maintenance contracts and eventually replacement. GreenLake model: HPE installs, owns, and services the infrastructure (servers, storage, networking) in the enterprise's data center or co-location facility; the enterprise pays a monthly consumption-based fee based on actual resource usage; HPE provides proactive monitoring, firmware updates, and hardware replacement; the enterprise can scale up or down (HPE adjusts the installed capacity buffer to accommodate growth); the enterprise never owns the hardware — it's capex-free IT infrastructure. Why enterprises use GreenLake: for workloads that must stay on-premises (regulatory data residency, latency requirements, security requirements), GreenLake provides cloud economics without moving to AWS, Azure, or Google Cloud; GreenLake ARR has grown significantly as enterprises adopt hybrid cloud models (some workloads on-premises via GreenLake, others in public cloud). HPE GreenLake vs. Nutanix: GreenLake is a delivery/procurement model (how you consume infrastructure) not an HCI software platform; GreenLake can include HPE SimpliVity (HPE's HCI software), traditional 3Par storage, or even Nutanix software on HPE hardware; Nutanix and HPE GreenLake can coexist (a customer could consume Nutanix software on HPE hardware delivered via GreenLake).

What is the multi-cloud management market and how does Nutanix participate?

Multi-cloud management: most large enterprises use multiple cloud environments simultaneously — typically a private cloud (on-premises VMs on HCI or traditional servers), AWS for some workloads, Azure for Microsoft-integrated workloads (Microsoft 365, SQL Server), and Google Cloud for analytics or AI workloads. The challenge: managing workloads across on-premises and multiple public clouds requires separate management tools, skills, and processes for each environment; porting workloads between cloud environments (VM images, storage formats, networking configs) is complex; cost and visibility across environments is difficult to maintain. Nutanix's multi-cloud strategy: Nutanix Cloud Platform (NCP) provides a unified platform managing workloads across Nutanix private cloud (on-premises AHV VMs), AWS (Nutanix Cloud Clusters on AWS — NC2), Azure (NC2 on Azure), and Google Cloud (NC2 on GCP); the same Nutanix management interface (Prism) manages VMs whether running on-premises or in public cloud; VM mobility (moving workloads between on-premises and public cloud) is simplified because Nutanix AHV runs natively in all environments. Competitive landscape: VMware vSphere (Broadcom) was the dominant enterprise private cloud — enterprises with vSphere on-premises and VMware Cloud on AWS had multi-cloud capability within the VMware ecosystem; Microsoft Azure Stack HCI provides Microsoft's hybrid cloud solution; Red Hat OpenShift provides Kubernetes-based multi-cloud container management. Nutanix's advantage: hardware-agnostic software running on any x86 platform, including cloud provider bare metal instances, provides genuine cloud portability that HPE GreenLake (hardware-centric) or VMware (requiring Broadcom licensing) cannot match as cleanly.

Data as of: September 18, 2026

brimindinvest.com / compare / ntnx-vs-vmwLIVE

NTNX

Nutanix, Inc. · Technology - Hyper-Converged Infrastructure Software

$69.97

+6.29% this month

VERSUS

COMPARE

HPE

Hewlett Packard Enterprise Company · Technology - Hybrid Cloud Infrastructure & IT Services

$61.04

+9.61% this month

Comparison scoreboard

HPE LEADS 4/5

AI Scorei

NTNX 35.2

HPE ✓70.8

1Y Returni

NTNX -9.90%

HPE ✓+146.83%

Fwd P/Ei

NTNX 25.21

HPE ✓12.81

Target Up.i

NTNX +13.16%

HPE ✓+24.92%

Op. Margini

NTNX ✓13.59%

HPE 8.70%

Metrics last refreshed: 9/18/2026

Quick take

NTNX vs HPE Stock Comparison: AI Score, Valuation, Performance and Upside

ShareX LinkedIn Reddit Facebook WhatsApp

NTNX (Nutanix) and HPE represent different approaches to enterprise hybrid cloud infrastructure — Nutanix is a pure-play software company providing HCI software that runs on any hardware (including HPE servers), while HPE is a full-stack enterprise IT company providing GreenLake as-a-service infrastructure, Aruba networking, and a range of server and storage products. Nutanix is the primary beneficiary of Broadcom's VMware pricing increases; HPE is a diversified enterprise IT infrastructure company with growing as-a-service offerings.

NTNX vs HPE is pure-play HCI software with VMware displacement opportunity (Nutanix's hardware-agnostic HCI software capturing enterprises fleeing Broadcom's VMware price increases, with improving subscription economics and multi-cloud management capabilities) versus diversified enterprise IT infrastructure with consumption services (HPE GreenLake providing full-stack as-a-service on-premises cloud, Aruba networking, and AI server upside — at lower growth rates and margins than pure software peers) — software TAM expansion versus infrastructure breadth.

Live analysis · updated 9/18/2026

HPE holds the edge across 4 of 5 key metrics in this comparison. HPE leads on both 1-year return (+146.83%) and forward P/E quality (12.81x vs 25.21x for NTNX), a relatively favorable combination of momentum and valuation. On fundamentals, HPE is growing revenue faster (40.00%), while NTNX maintains the higher operating margin (13.59%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for HPE (+24.92%) than for NTNX (+13.16%).

Want a full valuation workup? 46-section report — AI Score, Monte Carlo forecast, bull/bear case, DCF, and more.

NTNX Report HPE Report

Normalized 1Y performance

NTNX

HPE

Recent returns

NTNX

HPE

Analyst price targets & sentiment

Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.

NTNX

Price target range

analyst mean$75.65
current price$69.97

+13.2% upside to analyst mean

HPE

Price target range

analyst mean$65.35
current price$61.04

+24.9% upside to analyst mean

Who should consider this stock?

NTNX may suit investors who:

Believe Broadcom's VMware price increases are creating a multi-year displacement opportunity for Nutanix as thousands of enterprises re-evaluate VMware alternatives for private cloud HCI infrastructure
Value Nutanix's hardware-agnostic pure software model as providing structural gross margin improvement and customer flexibility advantages that HPE SimpliVity's hardware-bundled model cannot match
Want pure-play exposure to the HCI and cloud infrastructure software market without the hardware margin headwinds and commodity server business that HPE carries

HPE may suit investors who:

Value HPE's diversified enterprise IT portfolio — GreenLake as-a-service, Aruba networking, HPC/AI servers, and traditional infrastructure — as providing exposure to multiple enterprise IT spending trends simultaneously
See HPE's AI server business (high-performance computing for AI model training and inference) as a near-term growth catalyst from the AI infrastructure spending boom
Prefer HPE's established dividend, reasonable valuation (P/E ratio far below software peers), and meaningful free cash flow generation versus Nutanix's higher valuation and earlier-stage software economics

Performance & AI score

Performance & AI score
Metric	NTNX	HPE
AI scorei	35.2	70.8
AI ranki	#1712	#38
Latest closei	$69.97	$61.04
1M returni	+6.29%	+9.61%
6M returni	+70.53%	+175.95%
1Y returni	-9.90%	+146.83%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

$10,000 invested — hypothetical growth (dividends reinvested)
Period	NTNX	HPE
1Y ago	$8.95K (-10.5%) started 2025-09-18	$24.18K (+141.8%) started 2025-09-18
5Y ago	$17.25K (+72.5%) started 2021-09-20	$56.99K (+469.9%) started 2021-09-20
10Y ago	$18.91K (+89.1%) started 2016-09-30	$78.98K (+689.8%) started 2016-09-19

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Valuation & upside potential
Metric	NTNX	HPE
Market capi	$18.07B	$69.27B
Trailing P/Ei	12.93	48.89
Forward P/Ei	25.21	12.81
Price/Salesi	N/A	N/A
EV/Revenuei	6.03	2.20
Analyst targeti	$75.65	$65.35
Target upsidei	+13.16%	+24.92%

Full DCF model for NTNX Full DCF model for HPE

Growth, profitability & risk

Growth, profitability & risk
Metric	NTNX	HPE
Revenue growthi	15.90%	40.00%
Earnings growthi	3147.80%	-30.30%
EPS growthi	+3147.80%	-30.30%
FCF margini	+26.15%	+9.89%
Operating margini	13.59%	8.70%
Profit margini	52.81%	4.01%
ROIC proxyi	37460.21%	6.31%
Return on equityi	37460.21%	6.31%
Dividend yieldi	N/A	1.09%
Payout ratioi	0.00%	28.74%
Dividend growth streaki	N/A	No increase yet
Betai	0.60	1.44
Debt/equityi	216.17	84.03
Current ratioi	1.80	1.09
Quick ratioi	1.57	0.57

Correlation

Over the past year, NTNX and HPE have moved weakly in the same direction (correlation of 0.22), based on daily returns.

1Y

0.22

-1.0+1.0

5Y

0.27

-1.0+1.0

10Y

0.30

-1.0+1.0

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

NTNX max drawdowni55.97%

HPE max drawdowni26.57%

NTNX max wkly dropi20.98%

HPE max wkly dropi17.52%

5Y risk snapshot

NTNX max drawdowni67.65%

HPE max drawdowni48.36%

NTNX max wkly dropi27.23%

HPE max wkly dropi20.76%

10Y risk snapshot

NTNX max drawdowni80.40%

HPE max drawdowni56.87%

NTNX max wkly dropi38.35%

HPE max wkly dropi28.21%

Performance metrics by period

Performance metrics by period
Period	Metric	NTNX	HPE
1Y	Growthi	-10.48%	+141.84%
	CAGRi	-10.49%	+142.09%
	Volatilityi	46.46%	57.06%
	Sharpe ratioi	-0.10	1.76
	Sortino ratioi	-0.13	2.93
	Max drawdowni	55.97%	26.57%
	Current drawdowni	10.48%	1.69%
	Avg drawdowni	31.80%	10.37%
	Ulcer Indexi	35.24%	12.40%
	Max daily dropi	17.75%	10.76%
	Max wkly dropi	20.98%	17.52%
5Y	Growthi	+72.47%	+410.62%
	CAGRi	+11.53%	+38.60%
	Volatilityi	49.39%	41.53%
	Sharpe ratioi	0.38	0.89
	Sortino ratioi	0.56	1.36
	Max drawdowni	67.65%	48.36%
	Current drawdowni	15.77%	1.69%
	Avg drawdowni	26.53%	11.03%
	Ulcer Indexi	31.79%	14.06%
	Max daily dropi	23.10%	15.14%
	Max wkly dropi	27.23%	20.76%
10Y	Growthi	+89.11%	+495.10%
	CAGRi	+6.60%	+19.53%
	Volatilityi	56.63%	38.35%
	Sharpe ratioi	0.32	0.54
	Sortino ratioi	0.46	0.79
	Max drawdowni	80.40%	56.87%
	Current drawdowni	15.77%	1.69%
	Avg drawdowni	40.24%	14.87%
	Ulcer Indexi	45.23%	19.19%
	Max daily dropi	32.72%	15.31%
	Max wkly dropi	38.35%	28.21%

AI Prediction Signali

Members only

Next 5 trading days

NTNX

+2.8%BUY

HPE

+1.1%HOLD

Next 30 trading days

NTNX

+6.4%BUY

HPE

+3.2%HOLD

Start Free Trial Log in

ML model trained on historical prices · 14-day free trial · No credit card required

Business comparison

Business comparison
Category	NTNX	HPE
Company	Nutanix, Inc.	Hewlett Packard Enterprise Company
Sector	Technology	Technology
Industry	Software - Infrastructure	Communication Equipment
Core business	Nutanix is a software company that provides hyper-converged infrastructure (HCI) and cloud infrastructure software, enabling enterprises to run private cloud, hybrid cloud, and multi-cloud workloads on commodity hardware. Nutanix's platform (AOS — Acropolis Operating System) virtualizes compute, storage, and networking into a single software-defined layer that runs on standard x86 servers; Nutanix Prism provides a unified management interface; AHV is Nutanix's built-in hypervisor. Nutanix has transitioned its business model from hardware-bundled appliances to a pure software subscription model, with customers buying annual or multi-year software licenses and support contracts that run on hardware from any vendor (HPE, Lenovo, Dell, or third-party systems).	Hewlett Packard Enterprise is an enterprise IT infrastructure company providing hybrid cloud infrastructure (servers, storage, networking — the Aruba networking subsidiary), edge computing, and the GreenLake cloud services platform. HPE GreenLake is HPE's as-a-service offer providing on-premises IT infrastructure with cloud-like consumption-based pricing — enterprises pay for compute, storage, and networking as they use it rather than buying capital assets outright. HPE SimpliVity is HPE's HCI software platform competing directly with Nutanix; HPE also partners with VMware (now Broadcom). HPE's other segments include High Performance Computing (HPC — supercomputers for research and government) and Intelligent Edge (Aruba WiFi, campus networking, IoT).
Investor focus	Investors track Nutanix's annual recurring revenue (ARR) growth, contract value bookings, gross margin improvement as the software subscription model matures, free cash flow generation, and the competitive win rate against VMware (now Broadcom) and HPE/Cisco in hybrid cloud infrastructure.	Investors track HPE's GreenLake Annual Recurring Revenue (ARR) growth (the cloud-like consumption model), HPE's total revenue growth across server, storage, networking, and services, operating margin, and the competitive position of HPE against Dell Technologies and Super Micro Computer in AI servers.

NTNX strengths

Broadcom's acquisition of VMware created a massive TAM expansion opportunity for Nutanix — Broadcom dramatically increased VMware licensing costs and simplified VMware's product portfolio (eliminating many SMB-friendly tiers); thousands of enterprises facing 2-5x VMware cost increases are evaluating alternatives, with Nutanix as the primary beneficiary in private cloud HCI
Pure software model with hardware vendor flexibility increases customer stickiness and expands addressable market — Nutanix runs on any x86 server (HPE, Lenovo, Dell, Cisco); customers can buy Nutanix software and run it on preferred hardware vendor equipment; vendor flexibility removes hardware switching costs
Strong net revenue retention and multi-year contract structure provides high-visibility recurring revenue — Nutanix's subscription model generates predictable ARR; enterprise customers who have standardized on Nutanix's HCI platform for storage and compute virtualization create a sticky installed base

HPE strengths

HPE GreenLake provides full-stack hybrid cloud as a consumption service — enterprises can run cloud-like economics on-premises without migrating workloads to public cloud; HPE owns the hardware, services it, and charges monthly based on usage; GreenLake is the most comprehensive as-a-service offering from an enterprise hardware vendor
Aruba networking (HPE subsidiary) is a strong enterprise wireless and campus networking brand — Aruba competes effectively with Cisco in enterprise WiFi, campus switching, and SD-Branch; Aruba's AI-powered network management provides differentiation
AI server demand benefits HPE's ProLiant and Cray HPC server business — the AI infrastructure boom (AI model training and inference servers) is driving significant demand for GPU-accelerated servers; HPE's high-performance server capabilities position it as a beneficiary of AI infrastructure spending

Risks to watch — NTNX

Competition from Broadcom (VMware), HPE GreenLake, and Azure Stack HCI — despite the VMware pricing opportunity, Broadcom is not walking away; HPE GreenLake and Microsoft Azure Stack HCI (running on HPE/Dell servers) also target the hybrid cloud market; competition is intensifying
Nutanix's gross margins have room to improve but the business is not yet generating sustained positive FCF — as a software subscription business, Nutanix's economics should improve over time, but achieving consistent free cash flow generation has taken longer than some investors expected
Dependency on enterprise hardware refresh cycles — Nutanix's subscription revenue depends on enterprise IT budgets and server refresh cycles; enterprise IT spending freezes (in recessions) can delay Nutanix renewals and new workload additions

Risks to watch — HPE

HPE's HCI software (SimpliVity) has significantly lower market share than Nutanix — SimpliVity has not achieved scale comparable to Nutanix or VMware vSAN in the HCI market; HPE's HCI business is not a significant competitive threat to Nutanix
HPE's revenue growth has been modest relative to pure-play cloud and software companies — as a hardware-centric business, HPE's growth rate (mid-single digits) is far below software and cloud peers; margins are also lower than software companies
Server pricing competition from Dell, Super Micro, and ODM vendors — the server market is competitive; Super Micro Computer's aggressive pricing on AI servers and Taiwan ODMs competing in hyperscaler markets create pricing pressure on HPE's core server business

Frequently asked questions

Traditional enterprise IT infrastructure (pre-HCI): enterprises deployed separate hardware systems for compute (servers), storage (SAN — Storage Area Network, or NAS — Network Attached Storage), and networking; each component was purchased from different vendors (e.g., Dell servers, EMC storage, Cisco networking); managing three separate infrastructure silos required specialized staff for each; the SAN especially required expensive hardware (Fibre Channel switches and storage arrays) and specialized administrators. HCI (Hyper-Converged Infrastructure): HCI collapses compute, storage, and networking into a single software-defined platform running on standard x86 servers; each HCI node contributes CPU, RAM, and local NVMe/SSD storage to a distributed pool; the HCI software (Nutanix AOS, VMware vSAN, HPE SimpliVity) provides distributed storage, VM management, and networking from a unified software layer; multiple HCI nodes form a cluster — adding nodes scales compute and storage simultaneously. Why enterprises adopted HCI: simplicity — one vendor, one management interface, one support contract replacing three separate silos; scalability — linear scaling (add nodes to increase both compute and storage simultaneously); cost reduction — eliminating expensive Fibre Channel SANs and specialized storage hardware; performance — all-NVMe/SSD local storage with software-defined distributed storage provides high IOPS at lower cost than external SAN arrays; cloud-like operations — HCI enables private cloud (on-premises VMs with cloud-like provisioning speed). Nutanix's leadership: Nutanix was the pioneer of commercial HCI (founded 2009, IPO 2016); by making HCI run on any commodity x86 server rather than proprietary hardware, Nutanix enabled enterprises to use low-cost Lenovo, HPE, or SuperMicro hardware rather than expensive proprietary HCI appliances.

Free public comparison

Want deeper AI forecasts?

This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.

Start Free Trial Read Investing Guides

In-Depth Reports

Full valuation workup with AI Score, Monte Carlo forecast, and bull/bear case — free preview, premium data from $3.99.

NTNX Report HPE Report

Related comparisons