AI Demand Drives 156% Stock Surge for Seagate, 137% for Western Digital

In a surprising turn of events, the once overlooked sectors of hard drives and memory have become the new darlings of the U.S. stock market. Companies like Seagate Technology and Western Digital, which have long been considered low-key players, are now leading the market with significant gains in their stock prices and business performance. This shift is largely driven by the burgeoning demand for AI computing infrastructure, which has led to a surge in investments in semiconductors and network equipment.

Seagate Technology, a manufacturer of hard disk drives, has seen its stock price soar by 156% this year, making it one of the best-performing stocks in the S&P 500 index. Western Digital, another major player in the storage industry, has followed closely with a 137% increase in its stock price. Meanwhile, Micron Technology, the largest memory chip manufacturer in the U.S., has seen its stock price rise by 93% since the beginning of 2025, placing it among the top five performers in the index.

These companies, which have been around for decades, are now benefiting from the strong demand for AI computing equipment. The training of large language models, for instance, requires processing vast amounts of data, which in turn drives the need for high-capacity storage solutions. This has led to a resurgence in the demand for hard drives and memory chips, which were once considered outdated technologies.

However, not everyone is convinced that this surge in stock prices is sustainable. Some analysts argue that the market is in a bubble, and that the current valuations are unsustainable. They point to the fact that these companies have historically been cyclical, and that their stock prices have often been volatile. They also note that the current valuations are based on expectations of future growth, which may not materialize.

Despite these concerns, the demand for AI computing infrastructure shows no signs of slowing down. Major tech companies like Microsoft and Alphabet are continuing to invest heavily in AI, and this is expected to drive further growth in the storage industry. As a result, companies like Seagate, Western Digital, and Micron are likely to continue to benefit from this trend in the near future.

In conclusion, the surge in demand for AI computing infrastructure has led to a resurgence in the once overlooked sectors of hard drives and memory. While there are concerns about the sustainability of the current valuations, the strong demand for AI computing equipment is likely to continue to drive growth in these sectors in the near future. Investors should keep a close eye on these trends, as they could present significant opportunities for growth in the coming years.