Can Netskope (NTSK) turn AI network performance into defensible enterprise security advantages?

• Earlier today, Netskope announced NewEdge AI Fast Path, a set of NewEdge cloud capabilities that optimize secure, low-latency network paths to critical AI destinations across public, private, and neocloud environments.
• With its unique global edge infrastructure and tight control over extensive AI-focused peering, Netskope aims to combine performance, resiliency, and security for demanding enterprise AI workloads such as agent AI, RAG, and LLM access.
• Next, we’ll take a look at how the NewEdge AI Fast Path, specifically its focus on high-speed LLM and agent AI connectivity, impacts Netskope’s investment story.

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Netskope investment story summary

To own Netskope, you must believe that the NewEdge private cloud can become the core of secure AI and cloud access while the company deals with significant losses and dilution. While NewEdge AI Fast Path fits directly into the short-term acceleration of AI security demand, it alone does not solve the key risk that high R&D and network spending can result in low margins and high cash burn.

Among recent developments, Netskope One Data Lineage seems particularly relevant, along with AI Fast Path. Because both target the use of safer, higher-quality AI. Data Lineage focuses on tracking how sensitive information flows into AI tools, while AI Fast Path focuses on getting traffic into those tools quickly and securely. They both talk about the same catalyst: companies paying for unified control of performance, security, and data governance around AI.

But even with all this promise, investors still need to be aware of how NewEdge’s high AI traffic could impact its long-term margin progress.

Read the full story on Netskope (it’s free!)

The Netskope story projects $1.2 billion in revenue and $152.2 million in revenue by 2028. This would require annualized revenue growth of 22.9%, with revenues increasing by approximately $852 million from the current -$699.7 million.

We reveal how Netskope’s forecast yields a fair value of $27.29, a 175% increase over the current price.

explore other perspectives

Some of the most optimistic analysts had already assumed that Netskope would reach around US$1.3 billion in sales and US$151 million in revenue by 2029. So compared to the recent focus on AI-heavy workloads and NewEdge economics, we can see how views are divided on whether AI Fast Path and the broader NewEdge build will reduce or increase concerns about infrastructure costs and timing to profitability.

Check out 6 other fair value estimates on Netskope – Find out why the stock is worth more than twice its current price.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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