11 Best Data Storage Stocks to Invest in According to Analysts

4. Pure Storage Inc. (NYSE:PSTG)

Average Upside Potential as of March 28: 63.40%

Number of Hedge Fund Holders: 30

Pure Storage Inc. (NYSE:PSTG) delivers data storage and management solutions. It features all-flash arrays and cloud-native services. Its portfolio, which is driven by the Purity software platform, offers high-performance storage for diverse workloads. These include structured and unstructured data. It facilitates seamless data mobility across hybrid cloud environments.

The company’s data storage platform is driven by its DirectFlash technology which enables a top-four hyperscaler to deploy a consistent architecture. Its 150 terabyte DirectFlash Modules (DFM), with plans for 300 terabyte DFMs, offer significant capacity increases. The E family and FlashArray C are displacing traditional hard disk drives and offer better economics and efficiency. Record sales were achieved by Flashblade, FlashArray XL, and the E family in FQ4 2025.

The company’s Pure Fusion v.2 transforms storage architectures into enterprise data clouds, which automates data management and enhances security. Portworx, its containerized application storage solution, saw growth, especially in AI and cloud-native environments. FY25 revenue reached $3.2 billion, which was up 12%. The company acquired 334 new customers in FQ4. For FY26, Pure Storage Inc. (NYSE:PSTG) expects a revenue of $3.5 billion, which will be an 11% improvement.

Artisan Mid Cap Fund is bullish on the company due to its innovative storage solutions, market share gains, and a major contract win that signals future growth potential. The fund stated the following regarding Pure Storage Inc. (NYSE:PSTG) in its Q4 2024 investor letter:

“During the quarter, we initiated new GardenSM positions in US Foods, Pure Storage, Inc. (NYSE:PSTG) and Robinhood. Pure Storage is redefining enterprise data storage by bypassing traditional approaches used by competitors. Instead of purchasing costly enterprise-grade solid-state drives (SSDs) and layering software ontop, Pure Storage sources raw NAND flash memory and designs custom all-flash storage systems, providing a cost advantage. The company has been gaining share of the core enterprise data storage market due to this offering, but we believe its recent announcement of securing a large hyper scaler data center contract potentially opens the company up to a much larger addressable market and gives us confidence that the company can accelerate its growth trajectory over the next two to three years.”