3 AI Storage Stocks Critical to the Data Center Buildout

The trade of the year hasn’t slowed.

We are updating our call to own top tier chip names.

Here are 3 AI storage stocks critical to the data center buildout.

We’ve been on record about the huge opportunity in the chip space.

Back in October, we showcased how a flood of capital was chasing memory and storage names.

That’s still the case today.

The storage bottleneck is severe.

Today, I’ll run through insights that are keeping me constructive on the group.

This is a multi-year trade…with further upside.

3 AI Storage Stocks Critical to the Data Center Buildout

Listen to any hyperscaler earnings call and you’ll hear about bottlenecks in the memory and storage space.

As the need for speed and capacity increases, core storage suppliers benefit massively.

The first AI storage stock critical to the AI buildout is SanDisk (SNDK). The $305 billion NAND flash player has gained an incredible 4100% over the past year.

Even more remarkable is the subdued P/E that’s held below 11 during this record rally:

One look at the explosive earnings picture, makes this wicked rally understandable.

Here we can see how FY 2026 EPS is estimated to reach $65.50. But look out further and that number triples to $204.83 in FY 2028.

Folks, whenever EPS is ramping this fast, the bottleneck is severe…and profitable.

Our job at MoneyFlows is to find the biggest themes in the market, EARLY.

And we do…

To prove this, here’s the daily flows chart of SNDK. All of these green bars highlight the discrete days when SanDisk shares were quietly being accumulated.

One of the biggest sweeping trends of the past year was kicked off by institutional buy pressure beginning at $50:

As long as earnings are surging and institutions are along for the ride, we reiterate our bullish stance.

Let’s do another.

The number 2 AI storage stock critical to the AI buildout is Seagate (STX). The $250 billion market cap solid state drive (SSD) firm is up a monstrous 712% the last year.

This name is more expensive as the P/E just reached over 38 times:

While that is expensive, the trend of earnings beats has been nothing but spectacular.

Below details the last 4 quarters of EPS surprises. Notice the upward trend with the latest quarter coming in with a $.58 upward surprise:

Analysts have been behind the ball on Seagate all year.

Our data saw a wave of capital rushing in late last summer at a share price of $150. In fact, STX made our Outlier 20 list a whopping 9 times over the past year.

That’s our ultra-rare buy report that we deliver on a weekly basis:

Tracking money flows will find the biggest trends BEFORE any news headline.

Let’s do one more for good measure.

Our number 3 AI storage stock critical to the data center buildout is Western Digital (WDC). The $286 billion market cap hard disk drive (HDD) player has risen an eye-popping 1103% the last year.

The PE has expanded to nearly 39 times:

Is there a fundamental driver for such a ramp? YES.

Business is expected to not only explode in the years ahead, but profits are set to more than double.

Below shows the annual sales and net income estimates for Western Digital out to 2028.

In FY 2026, sales should reach $12.9 billion with net income of $3.8 billion. Fast forward to FY 2028 and sales will nearly double to $23.1 billion with net income surpassing $10 billion:

Severe shortages create huge tailwinds for stocks.

Incredibly, our data revealed a huge appetite for WDC shares a full year ago…and it never stopped.

This is what a 10X opportunity looks like in real time:

Look, we’ve been all over the storage and memory trade for a year.

More bottlenecks are forming as the relentless data center buildout shows no signs of slowing down.

I’ve said it before and I’ll say it again, 2026 is the best stock picking environment in decades.

If you aren’t outpacing the S&P 500 in 2026, you need better research. PERIOD.

Serious investors need MoneyFlows.

You’ll get early insights on major themes as they unfold…early.

Make 2026 your best year yet.

Our PRO subscription allows you to spot daily flows and access our weekly Outlier 20 report.

This is the report that has found EVERY SINGLE ONE of our Outlier stocks.

Professional money managers and RIAs looking for additional portfolio solutions including ETF flows & ranks and your own Portfolio Tracking tools, please reach out about our Advisor Solution and Emerging Advisor Program.

Lastly, I expand on this analysis with more stocks in our latest MoneyFlows Show video.

You can learn our process and get a better understanding of why this trend isn’t slowing anytime soon.

Enjoy!