In this article, we will discuss the 12 Best Data Storage Stocks to Buy Right Now.
Data storage stocks are emerging as one of the clearest ways to capitalize on the AI-driven infrastructure boom heading into 2026. An unprecedented surge in demand for high-capacity, low-latency memory- particularly DRAM and NAND- has created a powerful supply-demand imbalance, pushing prices sharply higher and positioning storage companies among the market’s top performers. As global data creation accelerates, fueled by cloud adoption and generative AI workloads, the need for scalable, high-speed storage has become mission-critical rather than discretionary. Hyperscalers are projected to invest hundreds of billions of dollars into AI and data center infrastructure, reinforcing long-term demand visibility for storage hardware and memory suppliers.
Artificial intelligence is at the center of this expansion. As Jensen Huang, CEO of NVIDIA, has emphasized, AI systems require vast amounts of “working memory,” driving insatiable demand for SSD-dominated architectures capable of handling high-bandwidth, real-time processing. While at CES 2026 in early January 2026, he said:
“This market will likely be the largest storage market in the world, basically holding the working memory of the world’s AIs.”
Across the sector, leading storage and memory providers are already translating AI-driven demand into strong share price performance and accelerating earnings momentum. Major flash and hard drive manufacturers have benefited significantly from tightening NAND supply and improving pricing dynamics, with some seeing their valuations surge as data center orders expand. Memory producers have emerged as a central beneficiary of AI infrastructure buildouts, as hyperscalers require ever-greater volumes of high-bandwidth memory. In enterprise infrastructure, all-flash storage specialists offering subscription-based, performance-optimized architectures are gaining traction with corporations upgrading systems to handle AI workloads. At the same time, data center real estate operators remain critical enablers of this ecosystem, providing the power, cooling, and hyperscale capacity needed to support expanding cloud and AI deployments, with a growing share of global capacity expected to be dedicated to hyperscale facilities in the coming years.
While the storage market has historically been cyclical and sensitive to supply shifts and macro volatility, today’s environment reflects structural, not merely temporary, demand growth. For investors, data storage represents a leveraged play on the ongoing digital infrastructure buildout—the backbone of the AI economy.
With this context in mind, here is a list of the 12 best data storage stocks to buy right now.
Our Methodology
We sifted through ETFs, screeners, and online rankings to identify the best data storage stocks to buy right now. From the resultant dataset, we limited our final selection to 12 data storage companies that have recently reported noteworthy developments likely to impact investor sentiment. As these stocks are popular among analysts and elite hedge funds, we ranked those stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q3 2025. We assessed hedge fund ownership of each stock using Insider Monkey’s hedge fund database. We have used the stock’s market cap as of February 19 as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Data Storage Stocks to Buy Right Now
12. Silicon Motion Technology Corporation (NASDAQ:SIMO)
Number of Hedge Fund Holders: 36
Market Capitalization: $4.51 billion
On February 5, Craig-Hallum raised its price target on Silicon Motion Technology Corporation (NASDAQ:SIMO) to $160 from $120 and maintained a Buy rating, citing market share gains and rising average selling prices amid sustained demand for its NAND flash controllers. While management expects near-term gross margin pressure in the March quarter due to rising memory costs, margins are projected to recover toward the 48%–50% range in subsequent quarters.
The previous day, Roth Capital raised its price target on Silicon Motion Technology Corporation (NASDAQ:SIMO) to $140 from $120 and reiterated a Buy rating following solid fourth-quarter revenue growth and first-quarter guidance that exceeded consensus expectations. Management anticipates sequential growth throughout the year, supported by continued share gains in smartphones and notebooks. Expanding market share, improving pricing dynamics, and a path toward margin normalization strengthen the company’s earnings outlook and reinforce the long-term growth thesis.
Silicon Motion Technology Corporation (NASDAQ:SIMO) develops and markets NAND flash controllers for solid-state storage devices, as well as SSD, microSD, and embedded storage solutions, serving global consumer and enterprise markets.
11. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 38
Market Capitalization: $20.07 billion
On February 17, Citi analyst Asiya Merchant reduced the price target on NetApp, Inc. (NASDAQ:NTAP) to $110 from $125 while maintaining a Neutral rating, reflecting broader valuation adjustments across the hardware and storage sector amid mixed end-demand commentary.
NetApp, Inc. (NASDAQ:NTAP) reported second-quarter revenue of $1.71 billion, representing 3% year-over-year growth, or 4% excluding the divested spot business. The company closed approximately 200 artificial intelligence infrastructure and data lake modernization transactions, demonstrating traction in AI-driven workloads. Keystone storage-as-a-service revenue grew 76% year over year, and public cloud revenue increased 18% year over year, excluding the spot business. The strength in AI infrastructure, consumption-based offerings, and hybrid cloud services highlights the company’s strategic pivot toward higher-growth segments, supporting recurring revenue expansion and long-term margin resilience despite near-term macro variability.
NetApp, Inc. (NASDAQ:NTAP), founded in 1992 and headquartered in San Jose, California, provides intelligent data infrastructure solutions, including unified storage, hybrid cloud data services, and ONTAP-based data management software for enterprise customers.
