Nutanix stock was rallying Thursday after the cloud-computing company, best known for its agreements with chip giants Advanced Micro Devices and Nvidia, posted better-than-expected earnings.

Shares jumped 6.1% to $69.39 ahead of the opening bell. They may still offer further upside, even after a 34% surge over the past three months through Wednesday's close.

Nutanix's bookings have been growing fast and it's only a matter of time before revenue catches up, KeyBanc analyst Brandon Nispel wrote in a research note.

The stock looks "inexpensive with accelerating growth," Nispel added. He maintained an Overweight rating and raised his price target to $79 from $75.

The price target hike came after Nutanix's fiscal fourth-quarter earnings beat analysts' expectations.

The company posted adjusted operating income of $198 million as revenue jumped 16% from a year ago to $757.1 million. Wall Street was looking for operating income of $164 million on revenue of $738 million.

For fiscal 2027, Nutanix expects revenue of between $3.18 billion and $3.23 billion. At the mid-point, that's a touch below the $3.22 billion analysts had been forecasting.

Nutanix's software combines computers, hard drives, and networking into one system, allowing a company to run all its apps and data from a single screen.

The company struck a deal in February to develop an infrastructure platform to power agentic AI applications for AMD. The chip maker agreed to buy $150 million of Nutanix stock and provide up to $100 million in funding to develop the platform.