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

The computer storage devices industry players are likely to gain from solid momentum in cloud computing, Internet of Things (IoT), auto, connected devices, virtual reality and artificial intelligence (AI) in the long run. These factors propel the demand for robust data storage solutions, bolstering computer storage product requirements.

The companies rely on AI for IT Operations (AIOps) and machine learning (ML) to manage and optimize storage solutions. To streamline data storage, companies are relying on virtualization technologies. As more data is added from IoT, companies are turning to edge computing architecture to reduce latency and boost flexibility.

At this stage, we have narrowed our search to three AI-driven storage device manufacturers to strengthen your portfolio returns in 2026. These are: Western Digital Corp. WDC, Teradata Corp. TDC and Seagate Technology Holdings plc STX. Each of these stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks in the past three months.

Western Digital Corp.

Western Digital has been witnessing strong execution amid intensified cloud and AI demand. Cloud end market (89% of total revenue) surged 31% in the last reported quarter, driven by strong demand for high-capacity nearline HDDs. WDC doubled shipments of ePMR products up to 26TB CMR and 32TB UltraSMR drives and is on track to ramp up HAMR drives in the first half of 2027.

WDC expects the proliferation of generative AI-driven storage deployments to result in a client and consumer device refresh cycle, and boost content creation and storage in smartphone, gaming, PC and consumer electronics in the long run. The increasing AI adoption is likely to drive increased storage demand across both HDD and Flash at the edge and core, thereby providing ample business opportunities. 

Gen AI adoption is driving eSSD sales due to its speed, reliability and efficiency over HDDs. Growing AI data boosts demand, fueling eSSD market growth and reshaping storage. Agentic AI is driving future data growth, while its platform business is gaining traction among native AI firms and SaaS providers. WDC expects fiscal second-quarter 2026 revenues of $2.9 billion (+/- $100 million), up 20%, driven by strong data center demand and high-capacity drive adoption.

Western Digital has an expected revenue and earnings growth rate of -12.1% and 54.8%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 15.3% over the last 60 days. 

Teradata Corp.

Teradata’s prospects are expected to benefit from an improvement in ARR growth rate, cost savings, and productivity measures. These factors are expected to drive meaningful free cash flow. Growing workloads on data platforms due to Agentic AI’s 24/7, always-on query potential bodes well for TDC’s prospects as it not only manages the critical enterprise data that powers these AI systems but also well positioned to deliver the performance required by these AI systems. 

TDC believes that it offers the best autonomous AI and knowledge platform for Agentic workloads at the best price performance, whether on-premises or in the cloud. An innovative portfolio that includes QueryGrid data analytics fabric, Enterprise Vector Store, AgentBuilder, and ClearScape Analytics with unified ModelOps capabilities is expected to drive top-line growth.

Acquisitions, such as Stemma, enhance Teradata’s capabilities in data search and exploration, providing added value to its analytics offerings. TDC has introduced innovative AI capabilities like ask.ai, which are designed to simplify natural language interactions. 

TDC has also introduced enhanced ModelOps features in ClearScape Analytics, aiming to provide no-code functionalities that empower customers to expand AI rapidly and advanced analytics while ensuring compliance with enterprise governance standards. 

New product rollouts like Enterprise Vector Store bring vector-based processing to the core analytics layer, enabling Retrieval-Augmented Generation and Agentic AI capabilities for real-time decisions. These developments are expected to drive TDC’s clientele and top-line growth over the long haul.

Teradata has an expected revenue and earnings growth rate of -0.6% and 3.3%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.4% over the last 30 days. 

Seagate Technology Holdings plc

Seagate is gaining from strong global cloud demand and rapid growth in high-capacity HAMR drive adoption, with cloud demand and improving enterprise OEM trends expected to continue. The data center generates a lion’s share of STX’s revenues.

STX’s high-capacity nearline production is largely booked through 2026, with long-term contracts providing strong demand visibility through 2027. Backed by cloud and AI demand, it projects fiscal second-quarter 2026 revenue of $2.7 billion (+/- $100 million), up 16% year over year at the midpoint.

Advancing aerial density remains a major strength for STX and a key driver of progress across the entire hard drive industry. Its aerial density roadmap ensures a lasting TCO advantage for hard drives over alternative technologies. Customers recognize the value of higher-capacity HAMR drives as the most efficient solution to meet growing AI-driven data storage demands.

In September 2025, STX announced an alliance with Acronis to provide MSPs and enterprises with secure, scalable storage for AI-driven data growth. Seagate and Acronis will offer Acronis Archival Storage, a secure, compliant, cost-efficient S3 solution using Seagate’s Lyve Cloud. Designed for MSPs and regulated sectors, it provides long-term data storage with enterprise-grade security, predictable costs and full compliance support.

Seagate has an expected revenue and earnings growth rate of 19% and 39%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the last 30 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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