10 Best Data Storage Stocks To Buy According to Hedge Funds

7. Pure Storage Inc. (NYSE:PSTG)

Number of Hedge Fund Holders: 31

Pure Storage Inc. (NYSE:PSTG) provides high-performance data storage solutions and specializes in flash-based storage systems, software, and services. It’s recognized for its innovative approach to data storage, using flash memory to deliver faster data retrieval speeds compared to traditional hard disk drives (HDDs). This performance advantage is critical for demanding applications such as big data analytics, AI, and high-performance computing.

The company recently secured a design win with a top-four hyperscaler, marking the first instance of a hyperscaler adopting flash storage for its standard infrastructure. The hyperscaler market accounts for 60-70% of all hard disk drives purchased globally. By replacing traditional hard drives with Pure Storage Inc.’s (NYSE:PSTG) DirectFlash technology, the hyperscaler can expect reduced power consumption, increased space utilization, and lower maintenance costs. It’s also expected to double the expected lifetime of the hyperscaler’s storage infrastructure. This breakthrough has left the company anticipating double-digit Exabyte deployments by FY 2027.

The company is strategically investing in its hyperscale business, and while this will impact operating margin in FY 2026, it positions Pure Storage Inc. (NYSE:PSTG) for long-term growth and leadership in the evolving hyperscale data storage market.