Nutanix Soars 5% on $300M Share Buyback as Cloud Sector Stirs

Summary
• Nutanix (NTNX) surges 4.97% to $50.67, hitting a 52-week high of $51.75
• $300M accelerated share repurchase announced, adding to $82.5M already repurchased in FY2026
• Options frenzy: 123 contracts traded for the $50 call ahead of January 16 expiration

Nutanix’s stock is surging on a bullish technical setup and a bold capital return move. The $300M ASR, funded by cash on hand, signals management’s confidence in its balance sheet and growth trajectory. With the stock trading near its 52-week high and options volume spiking, traders are positioning for a potential breakout in the hybrid multicloud sector.

Share Repurchase Ignites Investor Optimism
Nutanix’s 5% intraday rally is directly tied to its $300 million accelerated share repurchase (ASR) with Bank of America. The move, funded by existing cash reserves, underscores management’s belief in the stock’s undervaluation and its ability to generate sustained free cash flow. CEO Rajiv Ramaswami emphasized the ASR as a strategic lever to deliver shareholder returns while maintaining flexibility for innovation. The initial delivery of 4.97 million shares (80% of the ASR value) has already reduced the float, creating immediate supply-side tailwinds. This capital recycling strategy aligns with Nutanix’s broader focus on hybrid multicloud infrastructure, a sector gaining momentum as enterprises seek scalable AI and data management solutions.

Cloud Infrastructure Providers Rally on AI Infrastructure Momentum
The Cloud Infrastructure Providers sector is gaining traction as AI-driven demand reshapes data center dynamics. While Nutanix’s move is stock-specific, broader sector themes are amplifying its rally. Competitors like Google Cloud and Oracle are securing defense and enterprise contracts, while Huawei’s AI infrastructure breakthroughs highlight the sector’s innovation cycle. Amazon (AMZN), the sector’s leader, is up 0.47% on the day, reflecting sustained confidence in cloud scalability. Nutanix’s ASR announcement aligns with this trend, positioning it to capitalize on hybrid multicloud adoption as enterprises prioritize cost-effective, flexible solutions.

Options Playbook: Capitalizing on NTNX’s Bullish Momentum
• 200-day MA: $69.89 (well below current price) | RSI: 16.94 (oversold) | MACD: -4.63 (bullish crossover pending)
• Bollinger Bands: $39.50 (lower) to $62.80 (upper) | 30D support: $47.09

Nutanix’s technicals suggest a short-term breakout potential. The stock is trading near its 52-week high and has broken above the 30D support level. For options traders, the NTNX20260116C50 and NTNX20260116C52.5 contracts stand out. The $50 call (delta 0.57, IV 39.47%) offers a 18.73% leverage ratio with high liquidity (turnover: 343,852). Its theta of -0.072 and gamma of 0.0673 indicate strong sensitivity to price moves. A 5% upside to $53.19 would yield a $3.19 payoff, netting 63% on the $50 strike. The $52.5 call (delta 0.40, IV 37.85%) provides 33.72% leverage and a 120.59% price gain potential, ideal for aggressive bulls. Both contracts balance liquidity and gamma exposure, making them prime candidates for a continuation trade. Aggressive bulls may consider NTNX20260116C50 into a bounce above $51.15.

Backtest Nutanix Stock Performance
The backtest of Palo Alto Networks (NTNX) after a 5% intraday increase from 2022 to the present shows favorable performance metrics. The 3-Day win rate is 55.19%, the 10-Day win rate is 58.45%, and the 30-Day win rate is 62.53%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 7.57%, which occurred on day 59, suggesting that NTNX can deliver decent gains following a 5% intraday surge.

NTNX’s ASR Strategy: A Catalyst for Near-Term Gains
Nutanix’s $300M ASR is a strategic masterstroke, combining capital efficiency with shareholder value creation. The stock’s technical setup—oversold RSI and bullish K-line pattern—suggests a potential rally toward the 52-week high of $83.36. With the sector leader Amazon up 0.47%, cloud infrastructure remains in focus. Traders should monitor the $51.15 Bollinger Band middle line as a key support-turned-resistance level. A break above $51.75 could trigger a retest of the $62.80 upper band. For now, the NTNX20260116C50 and NTNX20260116C52.5 options offer leveraged exposure to this momentum. Watch for $51.15 breakdown or regulatory reaction.