10 Best Data Storage Stocks To Buy According to Hedge Funds

4. Seagate Technology Holdings (NASDAQ:STX)

Number of Hedge Fund Holders: 46

Seagate Technology Holdings (NASDAQ:STX) is a global provider of data storage solutions and specializes in hard disk drives (HDDs), and solid-state drives (SSDs) among other storage devices. It serves a diverse customer base, including original equipment manufacturers, distributors, and retailers.

Revenue for the company surged nearly 50% year-over-year in FQ1 2025, due to a high demand for nearline drives, which are HDDs designed for storing large amounts of data that is not accessed frequently, from major cloud service providers, particularly in the US. The increasing reliance on cloud services has fueled the need for massive storage capacity. HDDs continue to dominate the public cloud storage market, accounting for ~90% of stored bytes.

It expects continued growth in cloud demand, driven by factors such as the increasing adoption of data-intensive applications, the rise of GenAI, and the ongoing expansion of video content consumption. Seagate Technology Holdings (NASDAQ:STX) is well-positioned to capitalize on this growth with its high-capacity nearline drives and innovative technologies like HAMR (Heat-Assisted Magnetic Recording). Its focus on addressing the needs of cloud providers positions it for continued success in the data storage market.