3 Top-Ranked AI-Driven Computer Storage Devices Stocks to Buy for 2026

Industry Overview - The computer storage devices industry is expected to benefit from growth in cloud computing, IoT, connected devices, virtual reality, and AI, leading to increased demand for robust data storage solutions [1] - Companies are leveraging AI for IT Operations (AIOps) and machine learning to optimize storage solutions, while virtualization technologies are being used to streamline data storage [2] Company Insights Western Digital Corp. (WDC) - WDC has seen strong performance driven by cloud and AI demand, with cloud end market revenue increasing by 31% in the last quarter, accounting for 89% of total revenue [6] - The company has doubled shipments of ePMR products and is set to ramp up HAMR drives by the first half of 2027 [6] - WDC anticipates a client refresh cycle due to generative AI, boosting storage demand across various consumer electronics [7] - Expected revenue for fiscal Q2 2026 is $2.9 billion, a 20% increase, driven by data center demand [9] - Current revenue and earnings growth rates are projected at -12.1% and 54.8%, respectively, for the current year [10] Teradata Corp. (TDC) - TDC is expected to benefit from improved ARR growth, cost savings, and productivity measures, which will enhance free cash flow [11] - The company is well-positioned to manage enterprise data for AI systems, with innovative products like QueryGrid and ClearScape Analytics driving growth [12][14] - Recent acquisitions, such as Stemma, enhance TDC's analytics capabilities [13] - Expected revenue and earnings growth rates for next year are -0.6% and 3.3%, respectively [14] Seagate Technology Holdings plc (STX) - STX is experiencing strong demand from the cloud and high-capacity HAMR drive adoption, with significant revenue generated from data centers [15] - The company has its high-capacity nearline production booked through 2026, with revenue projections of $2.7 billion for fiscal Q2 2026, a 16% year-over-year increase [16][19] - Advancements in aerial density are a key strength for STX, providing a competitive advantage in the hard drive industry [17] - STX has formed an alliance with Acronis to offer secure storage solutions for AI-driven data growth [18]