After Record Runs for Western Digital and Sandisk in 2025, Consider This 1 Data Center Storage Stock for 2026

Core Insights - The infrastructure supporting artificial intelligence (AI) is becoming a significant investment theme, particularly in data storage, as it is essential for efficient data management and access [1] - Companies like Sandisk and Western Digital have performed well, driven by increased demand for high-capacity storage solutions, while investors are now looking towards companies that provide the foundational technologies for AI [2] Company Focus: Pure Storage - Pure Storage is positioned as a key player in the modern data center landscape, offering software-driven, all-flash storage solutions that enhance speed, scalability, and cloud flexibility [4] - The company’s core products, FlashArray and FlashBlade, utilize the Purity operating environment and are complemented by cloud-based management tools, indicating a comprehensive approach to data storage [5] - Analysts predict a double-digit upside potential for Pure Storage's stock, suggesting it could be a significant player in the evolving data center storage market as it heads into 2026 [3] Stock Performance - Pure Storage's stock experienced a notable increase of 10.4% in 2025, reaching a peak of $100.59 in November, but has since corrected, dropping approximately 50% from its highs [6] - Despite the recent decline, the stock has shown resilience, with a 16.38% increase over the past six months, indicating a potentially strong recovery trajectory [6]