Data storage is defined as the organized preservation of digital information, which is vital for today’s computing and businesses. It ensures that data, which includes text, images, and videos, remains accessible and secure for future use. This involves storage systems that range from direct attached storage to cloud solutions. Each of these offers different levels of scalability and accessibility. Fortune Business Insights reported that the global data storage market was valued at $218.33 billion in 2024. It’s projected to reach $774.00 billion by 2032 at a 17.2% CAGR. This growth is expected to be driven by the increasing need for data storage solutions due to the rise of big data.
The data storage industry is undergoing a transformation that is primarily driven by the explosive growth of AI workloads. As the global data volume surges towards a projected 181 zettabytes by 2025, AI demands high levels of storage capacity and performance, according to Avnet Integrated Solutions. AI applications are generating and processing massive datasets. The median size of AI training datasets has seen exponential growth with immense storage requirements. This is fueled by AI-generated content and real-time analytics, both demanding rapid data access and processing.
This surge in data necessitates high-performance storage solutions, which pushes the industry towards SSD dominance. The speed and efficiency of SSDs make them ideal for AI’s demanding requirements. Key advancements in SSD technology, such as 3D NAND and QLC NAND, are driving increased storage densities and improved performance. Emerging standards like EDSFF E3 and PCIe Gen 6 are optimizing SSDs for AI server and data center applications, with a focus on performance, efficiency, and the growing field of Edge AI. While SSDs are gaining prominence for active AI processing, HDDs remain relevant for cost-effective, large-scale storage of archived data. Their cost per gigabyte makes them suitable for data archiving, backup, data lakes, and surveillance applications. Technological advancements like HAMR and MAMR are increasing HDD capacities.
SSD prices are expected to decline as production scales and technology improves, while HDD pricing faces potential plateaus due to the maturity of the technology and increased manufacturing costs. The rise of AI is undeniably accelerating the transition towards SSD-dominated storage solutions. While HDDs retain their value for specific applications, SSDs’ performance and efficiency make them the preferred choice for handling AI’s immense data demands. The data storage industry must adapt to this evolving landscape and prioritize high-performance storage solutions to support the ever-growing needs of AI applications.
That being said, we’re here with a list of the 11 best data storage stocks to invest in according to analysts.
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Our Methodology
We sifted through ETFs and financial media reports to compile a list of the top data storage stocks. We then selected the 11 stocks with high analysts’ upside potential, at least 15%, as of March 28 and that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Data Storage Stocks to Invest in According to Analysts
11. Quantum Corp. (NASDAQ:QMCO)
Average Upside Potential as of March 28: 32.45%
Number of Hedge Fund Holders: 6
Quantum Corp. (NASDAQ:QMCO) provides data storage and management solutions. It caters to the needs of digital video and unstructured data. Its portfolio spans high-performance all-flash & hybrid storage, scalable object storage, robust backup appliances, and secure tape archiving. It addresses the data storage challenges of modern enterprises, particularly in AI, analytics, and media workflows.
The company’s data storage segment saw a 15% year-over-year increase in secondary storage revenue in FQ3 2025. This growth is attributed to the launch of the DXi data protection appliances, which are designed with advanced cybersecurity features and are prompting existing customers to upgrade their systems. The company is emphasizing subscription-based revenue, with over 90% of new sales coming from subscriptions.
The company secured significant deals, which included a multimillion-dollar agreement with a top European retailer. A major American multinational technology manufacturer chose Quantum Corp. (NASDAQ:QMCO) for their global backup and recovery strategy by deploying DXi9200 and DXi T-Series appliances. Archive solutions are experiencing growth, with a 7-figure deal secured with a Japanese research informatics institute for a 10+ petabyte capacity expansion. A South African cloud service provider transitioned to Quantum ActiveScale cold storage to manage over 10 petabytes of data, which includes a large archive component.
10. Oracle Corp. (NYSE:ORCL)
Average Upside Potential as of March 28: 35.61%
Number of Hedge Fund Holders: 105
Oracle Corp. (NYSE:ORCL) delivers enterprise IT solutions that encompass cloud software applications, infrastructure technologies, and hardware systems. Its offerings span ERP, database management, and cloud services. It enables businesses to manage data, optimize operations, and drive digital transformation across diverse industries.
The company’s data storage infrastructure, specifically its Cloud Infrastructure (OCI) segment, is experiencing growth due to AI and its Gen 2 architecture. IaaS revenue, which includes storage-related infrastructure, surged 51% year-over-year to $2.7 billion in FQ3 2025. This growth is emphasized by a 51% increase in OCI revenue itself, and a 28% rise in cloud database services revenue, with Autonomous Database consumption up 42%.
To support this data storage growth, the company is expanding its infrastructure. It has reached 101 cloud regions, and power capacity is projected to double this year and triple by the end of the next fiscal year. Oracle Corp. (NYSE:ORCL) is positioning itself as a leader in AI-driven data storage solutions by securing multibillion-dollar contracts for GPU clusters. On March 7, TD Cowen maintained a buy rating on the company, with a price target of $210 which is backed by the firm’s expectations of its new Stargate partnership that aims to invest around $500 billion over 4 years in AI infrastructure across the US.
Parnassus Core Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q4 2024 investor letter:
“Oracle Corporation (NYSE:ORCL) stock posted its best annual performance since 1999 as the software giant gained market share in cloud-based training of generative AI models. Oracle Cloud Infrastructure is helping to reaccelerate growth as the company continues to execute well in capturing new deals.
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.”
8. Silicon Motion Technology Corp. (NASDAQ:SIMO)
Average Upside Potential as of March 28: 38.99%
Number of Hedge Fund Holders: 39
Silicon Motion Technology Corp. (NASDAQ:SIMO) designs and markets NAND flash controllers, which are essential components for solid-state storage across various applications. Its products power SSDs in PCs, data centers, mobile devices, and industrial applications. This enables efficient and reliable data storage solutions for a global customer base.
The company’s core growth driver is its data storage controller segment which specializes in NAND flash controllers for SSDs, eMMC, and UFS. In 2024, its SSD controller business expanded by 20%, which helped the company capture over 30% of the market. It has a leading position in high-performance PCIe 5 SSD controllers and is developing new models for 2026, alongside its strong presence in portable SSD controllers.
The company’s eMMC/UFS controller business saw a 70% revenue increase in 2024, which was driven by expansions into non-smartphone data storage applications. It has entered the enterprise SSD market with its Mount Titan platform, which has secured six customers and aims for 5% to 10% of total revenue by 2026-2027. This includes developing next-generation PCIe 6 controllers and high-density 128TB SSDs specifically for AI-driven data storage.
Focus Capital Management is optimistic about Silicon Motion Technology Corp. (NASDAQ:SIMO) due to its exceptional 2024 growth, expanding market share, and successful entry into new high-growth markets like AI and high-end PCs. It stated the following in its Q4 2024 investor letter:
“Silicon Motion Technology Corporation (NASDAQ:SIMO) designs and sells controllers which manage the NAND flash memory ubiquitous in modern computing. Wherever there is NAND flash, there must be a controller, often one from Silicon Motion. SIMO is an ADR (American Depository Receipt) trading on the NASDAQ.
2024 — Growth Across the Board: We just recently discussed at some length in our third quarter letter about Silicon Motion’s strengthening industry position, increasing market share, and growing revenue and margins. Over 2024, revenue has grown 25%+, gross margin has expanded 500 basis points, and net income has about doubled. We will not repeat our points from there at length. We will simply suffice with saying that the future looks even brighter, with continued growth in their core market segments as well as significant growth from their entry into new market segments. Silicon Motion’s entry into the high-end PC market with their PCIe 5.0 controllers is off to a very strong start with major design wins. In fact, Silicon Motion has stated that based on their present design win pipeline, they expect to attain about 50% market share in the high-end PC segment over the next few years, from their present standing start. And their MonTitan enterprise controllers for AI and data centers have already garnered multiple Tier 1 customer wins, with more expected to come, in what is again a greenfield opportunity for the company…” (Click here to read the full text)
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.
6. Micron Technology Inc. (NASDAQ:MU)
Average Upside Potential as of March 28: 48.10%
Number of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) designs and manufactures memory and storage solutions, which include DRAM and NAND flash products. It serves diverse markets from data centers and PCs to mobile and automotive applications and provides essential components for high-speed data processing and storage under the Micron and Crucial brands.
On March 16, Baird analyst Tristan Gerra reaffirmed a Buy rating on the company with a $130 price target due to its growth potential in AI-related memory products like HBM and LPDDR5. The company’s data center DRAM revenue hit a record high in FQ2 2025, with HBM revenue exceeding $1 billion, which was up 50% sequentially. The company is the sole high-volume shipper of low-power data center DRAM. It has sold out of 2025 HBM output and is developing HBM4, which boasts a 60% bandwidth increase.
In data center NAND, Micron Technology Inc. (NASDAQ:MU) achieved record market share in calendar Q4 2024. Its 9550 SSD is qualified for NVIDIA’s GB200. It’s producing 150 terabyte DirectFlash modules, which is driving the HDD-to-NAND transition. The company anticipates multibillion-dollar data center NAND revenue in 2025. FQ2 2025 revenue was $8.1 billion, with DRAM revenue at $6.1 billion, which was up 47% year-over-year. NAND revenue was at $1.9 billion, which was up 18%.
Parnassus Value Equity Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter:
“Micron Technology, Inc. (NASDAQ:MU) posted fiscal-third-quarter results that met expectations. Micron’s DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company’s recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.”
5. Western Digital Corp. (NASDAQ:WDC)
Average Upside Potential as of March 28: 57.44%
Number of Hedge Fund Holders: 85
Western Digital Corp. (NASDAQ:WDC) delivers data storage devices and solutions that span from HDDs and SSDs for client, enterprise, and consumer markets. Its product range addresses the storage needs of PCs, mobile devices, data centers, and various consumer electronics. The company caters to the evolving demands of digital data storage.
The company’s HDD segment achieved a 12-quarter revenue high of $2.4 billion in FQ2 2o25, which was up 76% year-over-year. This growth is fueled by the demand for high-capacity enterprise drives, particularly those utilizing UltraSMR technology. The company shipped a record 154 exabytes of nearline storage, with an average price per unit of $172.
The company’s data center revenue hit an all-time high in FQ2 due to cloud demand, which represented 55% of the company’s total revenue. Western Digital Corp. (NASDAQ:WDC) is focused on the continued adoption of UltraSMR technology and the ramp-up of new drives. For the FQ3, the company expects HDD revenue to decline sequentially by a mid-to-high single-digit percentage, but gross margins to improve by 0.5%.
Parnassus Mid Cap Fund stated the following regarding Western Digital Corp. (NASDAQ:WDC) in its Q2 2024 investor letter:
“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”
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.”
3. Everspin Technologies Inc. (NASDAQ:MRAM)
Average Upside Potential as of March 28: 77.87%
Number of Hedge Fund Holders: 5
Everspin Technologies Inc. (NASDAQ:MRAM) manufactures and sells magnetoresistive random access memory (MRAM) technologies. This is a form of non-volatile data storage. The company offers several MRAM products like Toggle and spin-transfer torque MRAM. Its products cater to data-intensive applications across diverse industries.
The company’s MRAM products are designed to replace traditional flash memory for reliable and high-performance data storage. In Q4 2024, the company made a revenue of $13.2 million which was driven by strong product sales. This reached $11 million with contributions from the company’s RadHard projects. The company secured 178 design wins in 2024 and is shipping 256 megabits to one-gigabit parts with DDR-like interfaces.
Everspin Technologies Inc. (NASDAQ:MRAM) is seeing significant traction in the RadHard market. It has secured contracts with Purdue University and QuickLogic. The company is also supplying MRAM to IBM for its Flash Core Module 4 (FCM 4) data center applications. For 2025, the company expects higher revenue to be generated in H2 2025. Q1 revenue alone is projected between $12 and $13 million.
2. Backblaze Inc. (NASDAQ:BLZE)
Average Upside Potential as of March 28: 122.22%
Number of Hedge Fund Holders: 20
Backblaze Inc. (NASDAQ:BLZE) provides a scalable and affordable cloud storage platform that offers both B2 Cloud Storage for developers and businesses, and Computer Backup for individuals and organizations. Its services cater to data storage needs that range from application development and media management to secure backup and archiving.
The company’s B2 Cloud Storage represents over 50% of its Q4 2025 revenue. B2 revenue grew 22% year-over-year in Q4. B2 ARR reached $70 million, which was a $5 million sequential increase from Q3, which is the largest sequential increase since the company’s 2021 IPO. The company anticipates B2 growth to exceed 30% by the end of 2025. It’s seeing growth in the AI customer segment.
The company is acquiring larger enterprise clients, which include those in application development, social media, and digital media. Existing customers are expanding their usage. A significant deal involved a customer using the company’s Powered by Backblaze white-label product for over $1 million in annual contract value. In Q4, the total revenue was $33.8 million, which was up 18% year-over-year. B2 revenue was $17.1 million, which marked a 22% increase. The company expects 2025 revenue to be between $144 million and $146 million.
1. Data Storage Corp. (NASDAQ:DTST)
Average Upside Potential as of March 28: 143.24%
Number of Hedge Fund Holders: 1
Data Storage Corp. (NASDAQ:DTST) provides data storage and management solutions such as secure cloud storage, data protection, and recovery services. These ensure data integrity and accessibility for businesses across various sectors. Its offerings include technologies that range from offsite data vaulting to real-time data replication, which emphasize resilience and business continuity.
The company’s data storage business is primarily operated through its CloudFirst subsidiary which focuses on recurring subscription revenue from its enterprise infrastructure platform. It provides multi-cloud data storage solutions like hosting, disaster recovery, and IT automation. The subsidiary integrates with major cloud providers like AWS, Microsoft Azure, and Google Cloud. This shows the company’s expertise in hybrid and multi-cloud environments.
CloudFirst operates across 11 data centers in the US, Canada, and the UK. Earlier in Q3 2024, CloudFirst generated $5.5 million in revenue. The revenue is projected to reach over $20 million in recurring revenue for 2025. This growth is supported by a client renewal rate of over 90%. In the UK, CloudFirst has expanded its data storage capabilities through partnerships like that with Megaport. This partnership uses CloudFirst’s Direct Connect service to offer secure and high-performance connectivity to cloud providers. It has also partnered with a UK-based data center provider under the name of Pulsant to extend its services to IBM customers.
While we acknowledge the growth potential of DTST, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DTST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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