11 Best Data Storage Stocks to Invest in According to Analysts

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7. Seagate Technology Holdings (NASDAQ:STX)

Average Upside Potential as of March 28: 41.63%

Number of Hedge Fund Holders: 52

Seagate Technology Holdings (NASDAQ:STX) provides data storage solutions that encompass mass-capacity HDDs and SSDs, external storage devices, and edge-to-cloud platforms. Its products serve diverse markets that range from enterprise data centers to personal computing and gaming. It addresses the evolving needs of data storage and infrastructure.

The company’s data storage segment saw strong growth in FQ2 2025 as nearline product revenue nearly doubled year-over-year due to cloud demand. The company shipped 151 exabytes, with 140 exabytes from mass capacity drives. It’s ramping up its Mozaic HAMR platform and offering up to 36 terabyte drives which is driving significant cloud customer adoption.

Cloud remains the primary growth driver for Seagate Technology Holdings (NASDAQ:STX), with hyperscale customers investing in infrastructure for AI. AI applications, especially those generating video and imagery, are expected to increase HDD demand. Enterprises are also increasing edge data storage for AI. The company’s revenue in FQ2 was $2.33 billion, which was up 7% sequentially. Due to this financial performance, Benchmark analyst Mark Miller upgraded the company to Buy from Hold with a $120 price target on January 22.

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