10 Best Data Storage Stocks To Buy According to Hedge Funds

3. Equinix Inc. (NASDAQ:EQIX)

Number of Hedge Fund Holders: 55

Equinix Inc. (NASDAQ:EQIX) is a digital infrastructure company. As the largest pure-play data center REIT in the US, it serves 10,000+ customers, providing critical infrastructure for their data storage, processing, and interconnection needs. It plays a pivotal role in the evolving landscape of data storage and cloud computing, particularly in the context of the AI revolution.

The company’s focus on low-latency access to multiple cloud providers directly supports efficient data storage and processing for AI. It streamlines AI workloads by enabling the rapid transfer of large datasets between on-premises storage, cloud storage, and processing locations.

Its platform’s support for hybrid AI deployments optimizes data storage strategies. Businesses can store data strategically by enabling seamless integration between on-premises and public cloud infrastructure. For instance, less frequently accessed data can be stored cost-effectively on-premises, while leveraging cloud storage for high-performance needs or when data volumes surge.

Its xScale data centers are specifically designed to meet the demanding infrastructure needs of hyperscalers and service providers involved in AI. Equinix Inc. (NASDAQ:EQIX) is playing a vital role in shaping the future of data storage and cloud computing in the AI era.

Baron Real Estate Fund stated the following regarding Equinix, Inc. (NASDAQ:EQIX) in its first quarter 2024 investor letter:

“Following strong relative and absolute performance in 2023, we reduced our position in leading global data center operator, Equinix, Inc. (NASDAQ:EQIX), due to the Fund’s large position size and other compelling new investment ideas that we have been identifying. Equinix continues to be a core position in the Fund, and we remain optimistic about the long-term growth prospects for the company due to its interconnection focus among a highly curated customer ecosystem developed over the past 20-plus years, strong demand and pricing power, favorable supply backdrop, and evolving incremental demand vectors such as AI. We believe Equinix can continue to compound earnings at approximately 10% over the next few years and believe the prospects for strong shareholder returns remain compelling.”