Pure Storage (PSTG) investors were focused on the company's win with a "top 4 hyperscaler," a major milestone that is anticipated to increase sales in fiscal 2027, Wedbush said in a note Wednesday.

The investment firm said Pure's hyperscaler win, which will see the customer integrate the company's DirectFlash modules, is expected to be margin accretive and, along with the company's partnership with CoreWeave, "effectively expands [the company's] TAM into the cloud while diminishing risk."

"The initial deal could pave the way for additional CSP traction," Wedbush analysts said in the note. "We see [Pure Storage's] solution as filling a potential future void in high capacity SSD availability, given industry challenges pairing strong QLC bits with capable controllers."

Wedbush noted that Pure Storage did not elaborate on the financial implications of its hyperscaler win, although management said it now expects higher operating expenses in 2026 to reflect investments aimed at supporting the new customer deployment.

Wedbush raised Pure Storage's price target to $75 from $70 and maintained an outperform rating on the stock.

Shares of the company rose more than 23% in recent Wednesday trading.

Price: 65.99, Change: +12.45, Percent Change: +23.25