11 Best Data Storage Stocks to Invest in According to Analysts

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9. NetApp Inc. (NASDAQ:NTAP)

Average Upside Potential as of March 28: 36%

Number of Hedge Fund Holders: 41

NetApp Inc. (NASDAQ:NTAP) delivers enterprise-grade data management solutions that span hybrid and public cloud environments. Its portfolio includes robust storage infrastructure, advanced data management software, and comprehensive cloud services. This enables businesses to optimize data storage, enhance operational efficiency, and drive digital transformation.

On March 4, Loop Capital Markets maintained a Buy rating on the company but lowered the price target to $130 from $150. This followed the company’s FQ3 2025 results, with $1.64 billion in revenue. This was up 2% year-over-year which was driven by all-flash storage and 100+ wins in AI-driven data lake modernization. The company’s data storage segment is a key revenue driver. Its all-flash array business reached an annualized $3.8 billion, which was up 10% in FQ3.

NetApp Inc. (NASDAQ:NTAP) expanded its all-flash storage offerings with new ASA systems and experienced customer adoption of its AFF arrays (A90 and C60) due to their high performance and ability to manage data across various locations. Keystone, the company’s storage-as-a-service offering, grew ~60% in FQ3. Public cloud storage services also grew over 40% year-over-year, making up over 70% of the public cloud segment’s revenue.

The company’s growth comes from tech areas like AI and cloud, as well as its strategic positioning for future digital transformation. Ariel Global Fund stated the following regarding NetApp Inc. (NASDAQ:NTAP) in its Q2 2024 investor letter:

“Market leader for computer storage systems, NetApp, Inc. (NASDAQ:NTAP) advanced over the quarter following a top- and bottom-line earnings beat. Strong growth across its All-Flash, Block, Artificial Intelligence (AI) and Public Cloud products, tight cost controls and operating margin expansion drove the outperformance. Additionally, management raised the quarterly dividend, announced a buyback program and reiterated its commitment to return 100% of free cash flow to shareholders in 2025, further aiding shares. We believe NetApp is well-positioned to benefit from its cloud storage service as it helps companies move data between public and private clouds seamlessly. Meanwhile, we remain excited about the company’s digital transformation projects involving business analytics, AI and data security.”

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