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.
10. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 42
Market Capitalization: $17.80 billion
On February 4, Needham lowered its price target on Super Micro Computer, Inc. (NASDAQ:SMCI) to $40 from $51 while maintaining a Buy rating. The firm attributed the company’s second-quarter earnings outperformance to a large-scale data center deployment by a major customer and highlighted increasing adoption of its Data Center Building Block Solutions platform, although the revised target reflects sector-wide valuation compression in AI hardware.
For the second quarter, Super Micro Computer, Inc. (NASDAQ:SMCI) reported record revenue of approximately $12.7 billion, representing 123% year-over-year growth and 153% sequential growth, exceeding prior guidance of $10 billion to $11 billion and including approximately $1.5 billion of delayed first-quarter shipments. GAAP EPS was $0.60 versus guidance of $0.37 to $0.45, while non-GAAP diluted EPS reached $0.69 compared to guidance of $0.46 to $0.54. Non-GAAP operating expenses declined to 1.9% of revenue, reflecting substantial operating leverage compared to 4.1% in the prior quarter.
Management guided third-quarter fiscal 2026 revenue of at least $12.3 billion and increased full-year fiscal 2026 revenue guidance to at least $40 billion, with anticipated gross margin improvement of approximately 30 basis points sequentially. Ongoing expansion of manufacturing capacity across Silicon Valley, Taiwan, Malaysia, the Netherlands, and the Middle East, combined with automation and modularization initiatives, supports scalable production and margin enhancement, reinforcing the company’s positioning within the AI infrastructure buildout.
Super Micro Computer, Inc. (NASDAQ:SMCI), founded in 1993 and headquartered in San Jose, California, designs and manufactures high-performance server and storage systems for data centers, cloud computing, artificial intelligence, 5G, and edge computing markets.
9. Pure Storage, Inc. (NYSE:PSTG)
Number of Hedge Fund Holders: 48
Market Capitalization: $23.97 billion
On February 17, Citi lowered its price target on Pure Storage, Inc. (NYSE:PSTG) to $90 from $105 while maintaining a Buy rating, reflecting updated assumptions across the hardware and storage group ahead of upcoming fourth-quarter earnings reports. While the firm acknowledged that commentary surrounding end-market demand remains mixed, the continued Buy recommendation underscores confidence in the company’s differentiated positioning and long-term growth trajectory within enterprise storage.
During its third-quarter fiscal 2026 earnings call, Pure Storage, Inc. (NYSE:PSTG) reported revenue of $964 million, representing 16% year-over-year growth, alongside a 17% increase in operating income to $196 million and an operating margin of 20.3%. Subscription services revenue rose 14% to $430 million, accounting for 45% of total revenue, while annual recurring revenue expanded 17% to $1.8 billion, highlighting the durability of its recurring revenue model. Fourth-quarter guidance calls for revenue between $1.02 billion and $1.04 billion and operating profit of $220 million to $230 million. For the full fiscal year 2026, management expects revenue of $3.63 billion to $3.64 billion and operating profit between $629 million and $639 million. The combination of double-digit top-line growth, expanding margins, and increasing subscription penetration reinforces visibility into cash flow generation and supports a constructive long-term investment outlook.
Ninth in the list of best data storage stocks to buy right now, Pure Storage, Inc. (NYSE:PSTG) is a leading provider of all-flash data storage hardware and software solutions designed to replace traditional disk-based arrays, serving enterprise and cloud customers globally. The company was founded in 2009 and is headquartered in California.
8. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 48
Market Capitalization: $28.64 billion
On February 18, Morgan Stanley analyst Erik Woodring lowered the firm’s price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $23 from $25 and maintained an Equal Weight rating. While the firm anticipates “a solid, if not good,” January quarter and April quarter outlook from off-cycle hardware names, it is increasingly cautious on the memory backdrop, reflecting concerns around potential cyclical moderation within certain IT hardware segments.
On February 4, 2026, HPE’s board declared a $0.953125 per-share dividend on its 7.625% Series C Mandatory Convertible Preferred Stock, payable March 1 to shareholders of record on February 15, underscoring its commitment to returning capital to preferred investors.
In addition, Hewlett Packard Enterprise Company (NYSE:HPE) reported fourth-quarter revenue of $9.7 billion, representing 14% year-over-year growth, with non-GAAP operating income increasing 26% and operating margin reaching a record 12.2%. AI system orders totaled $6.8 billion for the fiscal year, with sovereign and enterprise customers accounting for more than 60% of cumulative bookings since 2023. The successful integration of Juniper Networks further strengthened HPE’s networking portfolio and contributed meaningfully to revenue. Strong AI-driven demand, expanding margins, and disciplined capital returns reinforce the company’s positioning for sustained earnings growth despite near-term industry caution.
Hewlett Packard Enterprise Company (NYSE:HPE), headquartered in Spring, Texas, is a global enterprise IT provider focused on servers, storage, networking, containerization software, and consulting and support services for business and government customers.
7. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 51
Market Capitalization: $77.39 billion
On February 17, Citi lowered its price target on Dell Technologies Inc. (NYSE:DELL) to $160 from $165 while maintaining a Buy rating, reflecting broader hardware sector multiple adjustments amid mixed end-demand commentary ahead of fourth-quarter earnings.
During its fiscal 2026 third-quarter earnings call, Dell Technologies Inc. (NYSE:DELL) provided constructive forward guidance. For the fourth quarter, revenue is projected between $31 billion and $32 billion, with Infrastructure Solutions Group and Client Solutions Group revenue expected to grow approximately 34% at the midpoint. The company highlighted robust AI server demand, forecasting $9.4 billion in fourth-quarter AI server shipments and approximately $25 billion for the full fiscal year, representing 150% year-over-year growth. Operating income is expected to increase 21% sequentially, driven by AI momentum and storage strength. Full fiscal 2026 guidance calls for revenue of $111.7 billion, up 17%, and non-GAAP EPS of $9.92, up 22% at the midpoint. Management also expressed strong confidence in fiscal 2027, supported by a growing AI backlog and expanding customer base. Sustained AI-driven growth and operating leverage position Dell to deliver continued earnings expansion.
Dell Technologies Inc. (NYSE:DELL), founded in 1984 and headquartered in Round Rock, Texas, develops and markets personal computers, servers, storage solutions, networking equipment, and related services for enterprise and consumer customers worldwide.
6. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 58
Market Capitalization: $90.81 billion
On February 13, Morgan Stanley raised its price target on Equinix, Inc. (NASDAQ:EQIX) to $1,075 from $950 and reiterated an Overweight rating after the company increased its 2026 revenue and adjusted funds from operations (AFFO) growth guidance. The analyst cited accelerating recurring revenue growth in the fourth quarter, supported by record gross bookings, as evidence of strengthening demand fundamentals.
The day prior, Scotiabank also raised its price target to $997 from $959 and maintained an Outperform rating, noting that Equinix, Inc. (NASDAQ:EQIX) is entering 2026 with a robust backlog and new site openings that are expected to drive earnings acceleration. In its February 11 fourth-quarter 2025 results, the company reported revenue of $2.4 billion, up 7% year over year, adjusted EBITDA of $1.2 billion with a margin of approximately 49%, and AFFO of $877 million, up 13% year over year.
For 2026, management guided to revenue growth of 9%–10%, adjusted EBITDA margin expansion to approximately 51%, AFFO growth of 9%–11%, and AFFO per share growth of 8%–10%. Equinix, Inc. (NASDAQ:EQIX) also expects to increase its quarterly dividend by approximately 10% year over year, with total 2026 cash dividends of roughly $2.0 billion. Expanding margins, visible recurring revenue, and dividend growth collectively support a compelling total return profile.
Equinix, Inc. (NASDAQ:EQIX) operates more than 260 carrier-neutral data centers across over 70 major metropolitan markets globally, providing colocation, interconnection, and edge services that enable secure, low-latency digital connectivity. The company is headquartered in Redwood City, California.
5. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 61
Market Capitalization: $88.60 billion
On February 18, Sandisk Corporation (NASDAQ:SNDK) announced a secondary public offering of approximately $3.09 billion of common stock currently owned by Western Digital. SanDisk will not issue new shares or receive proceeds from the transaction, which includes a concurrent debt-for-equity exchange. J.P. Morgan Securities and BofA Securities are acting as joint lead book-runners and representatives of the underwriters.
Previously, on January 30, BofA raised its price target on Sandisk Corporation (NASDAQ:SNDK) to $850 from $390 and maintained a Buy rating after the company reported fiscal second-quarter revenue and EPS above guidance and issued fiscal third-quarter guidance significantly above Street expectations. Following the results, BofA increased its fiscal 2026 revenue and EPS estimates to $15.7 billion and $39.50, respectively, from $10.9 billion and $16.21, reflecting materially higher margin and profitability assumptions. Strong operating performance and upward estimate revisions underscore improving earnings power and position the company to benefit from favorable memory pricing dynamics.
Sandisk Corporation (NASDAQ:SNDK), founded in 1988 and headquartered in Milpitas, California, designs and manufactures flash memory products, including memory cards, USB drives, and solid-state storage solutions.
4. Seagate Technology Holdings plc (NASDAQ:STX)
Number of Hedge Fund Holders: 72
Market Capitalization: $92.49 billion
On February 17, Mizuho increased its price target on Seagate Technology Holdings plc (NASDAQ:STX) to $475 from $440 and maintained an Outperform rating, reflecting continued confidence in earnings momentum and favorable industry conditions within mass-capacity storage.
Seagate Technology Holdings plc (NASDAQ:STX) reported December-quarter revenue of $2.83 billion, up 7% sequentially and 22% year over year. Non-GAAP gross margin expanded to 42.2%, up 210 basis points sequentially, while non-GAAP operating margin rose to 31.9%, an increase of 290 basis points quarter over quarter. Non-GAAP EPS reached $3.11, up 19% sequentially. The company achieved record levels in exabyte shipments, gross margin, operating margin, and non-GAAP EPS. March-quarter guidance calls for revenue of $2.9 billion plus or minus $100 million, implying approximately 34% year-over-year growth at the midpoint, and non-GAAP EPS of $3.40 plus or minus $0.20, with operating margin expected to approach the mid-30% range. Management anticipates continued sequential improvement in both revenue and profitability through calendar 2026, reinforcing confidence in sustained operating leverage and earnings expansion.
Seagate Technology Holdings plc (NASDAQ:STX), incorporated in 1978 and headquartered operationally in Fremont, California, is a global leader in data storage solutions, designing and manufacturing hard disk drives, solid-state drives, and storage systems for enterprise, cloud, and consumer applications.
3. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 84
Market Capitalization: $100.55 billion
On February 9, BofA raised its price target on Western Digital Corporation (NASDAQ:WDC) to $375 from $345 and reiterated a Buy rating following in-person meetings with CFO Kris Sennesael in New York. The firm indicated increased confidence in management’s ability to execute against revised long-term financial targets introduced at its recent innovation day, suggesting improved operational discipline and strategic clarity.
Western Digital Corporation (NASDAQ:WDC) also announced plans to divest approximately $3.17 billion of its holdings in SanDisk through a secondary public offering as part of broader debt reduction initiatives. SanDisk will not receive proceeds from the transaction, which includes a concurrent debt-for-equity exchange involving 5.8 million shares held by affiliates of J.P. Morgan and BofA Securities. The offering was priced at a 7.7% discount to the prior closing price. This transaction is expected to strengthen Western Digital’s balance sheet, enhance financial flexibility, and support capital structure optimization, thereby positioning the company to capitalize on the cyclical recovery in storage demand.
Western Digital Corporation (NASDAQ:WDC) is one of the world’s largest manufacturers of hard disk drives and data storage solutions, serving consumer, enterprise, and cloud markets. The company was founded in 1970 and is headquartered in San Jose, California.
2. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 102
Market Capitalization: $60.25 billion
On February 18, Citi lowered its price target on Snowflake Inc. (NYSE:SNOW) to $270 from $300 while maintaining a Buy rating. The firm attributed the stock’s 30% pullback following fiscal third-quarter results to a smaller-than-typical earnings beat and broader software sector concerns related to artificial intelligence spending. Citi characterized the decline as excessive, emphasizing Snowflake’s resilient, consumption-based model and describing it as one of the more AI-resilient platforms in the sector.
On February 2, Snowflake Inc. (NYSE:SNOW) announced a multi-year $200 million agreement with OpenAI aimed at providing its 12,600 global customers with direct access to OpenAI’s models through Snowflake Cortex AI, its native engine for generative AI and machine learning workloads. The partnership also enables access to AI agents across deployments on Amazon Web Services, Microsoft Azure, and Google Cloud Platform. This strategic collaboration enhances Snowflake’s AI ecosystem integration, strengthens its competitive differentiation, and supports incremental workload expansion on its platform. As AI adoption accelerates, Snowflake’s expanding partnerships and durable consumption model position it for sustained revenue growth and long-term value creation.
Snowflake Inc. (NYSE:SNOW), headquartered in Bozeman, Montana, operates a cloud-based data platform that enables organizations to consolidate, analyze, and securely share large-scale data with high performance and minimal latency.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
Market Capitalization: $473.78 billion
On February 10, Deutsche Bank raised its price target on Micron Technology, Inc. (NASDAQ:MU) to $500 from $300 and maintained a Buy rating, citing tightening DRAM supply conditions and elevated memory pricing. The firm projects that industry shortages could persist through 2027 and into 2028, fostering a structurally more favorable profitability environment for memory manufacturers.
In its fiscal first-quarter 2026 earnings call, Micron Technology, Inc. (NASDAQ:MU) reported revenue of $13.6 billion, up 21% sequentially and 57% year over year, marking its third consecutive quarterly revenue record. Gross margin expanded to 56.8%, an 11-percentage-point sequential improvement, and the company generated record free cash flow of $3.9 billion. All business units achieved record revenue levels, including Cloud Memory at $5.3 billion, Core Data Center at $2.4 billion, Mobile and Client at $4.3 billion, and Automotive and Embedded at $1.7 billion. Robust demand across end markets, combined with margin expansion and strong cash generation, positions Micron to benefit disproportionately from sustained supply constraints and secular AI-driven memory demand.
Headquartered in Boise, Idaho, Micron Technology, Inc. (NASDAQ:MU) is a leading U.S. semiconductor manufacturer specializing in DRAM, NAND flash memory, and solid-state storage solutions, serving data center, AI, automotive, and mobile markets.
While we acknowledge the potential of MU as the best data storage stock to buy right now, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about this cheapest AI stock.
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