Western Digital Vs Seagate Stock

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Western Digital Vs Seagate Stock

Western Digital vs Seagate Stock: Which Is Better?

One aspect of AI that is often overlooked is that it creates a lot of data. And that data needs to be stored on storage devices.

Two big US companies that supply the storage devices are Seagate Technology (STX) and Western Digital (SDC). The stock price of these companies is up by 200% and 190%, respectively, on a YTD basis. Analysts also think more upside is ahead for both of these stocks.

Massive Demand For Memory Products

The early AI hype was all about chips and computing power. But now, the market is realizing that the AI field is very data-heavy. LLMs require huge amounts of storage to save all the data.

This demand is good for the AI memory stocks. That's a key reason why Western Digital is experiencing strong demand from the AI data centers.

The management revealed that 100% of the HDD production of 2026 is already sold out. The company also has purchase agreements for the next few years.

On the other hand, Seagate is also struggling to meet demand. Their current and future production is also already booked for the next few years.

This rush towards securing the storage devices has also led to a shortage of hardware in the market. This gives immense pricing power to companies like Seagate and Western Digital.

The Q3 FY2026 revenue of Western Digital was $3.34 billion. This is an increase of 45% y/y. Similarly, the revenue of Seagate was $3.1 billion, with a 44% y/y increase.

If you really had to choose between the two, Western Digital stock is the better option. Its valuation is low, and the debt position is also very reasonable.

There's no doubt that Seagate has the upper hand when it comes to technology. But Western Digital has higher margins than Seagate.

The thing about these two stocks is that there are no wrong answers. Buying any of these two stocks will give you exposure to the AI memory market. But if you really have to choose, then go with Western Digital stock.

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