Western Digital and Seagate report 44% and 48% year-over-year revenue growth, respectively, fueled by AI infrastructure expansion.
Western Digital (WDC) and Seagate Technology (STX) have significantly outperformed the S&P 500 this year, driven by rising demand for solid-state and hard-disk drives in artificial intelligence infrastructure. Both companies specialize in data storage hardware critical for AI build-outs by hyperscalers.
Western Digital posted 44% year-over-year revenue growth in its fiscal 2026 fourth quarter, while Seagate reported $3.6 billion in revenue, a 48% increase over the same period. Despite similar growth trajectories, their five-year compound annual growth rates differ, with Western Digital at -5.3% and Seagate at 2.7%, reflecting past cyclical downturns in storage demand.
The investment thesis for both firms hinges on the sustained multiyear boom in AI-related capital expenditures, with hyperscalers continuing to ramp up infrastructure spending.