Data storage giants Western Digital and Seagate have surged more than 200% this year, riding a wave of unprecedented demand for hard drives driven by the global race to build AI infrastructure. Both companies’ shares are trading at record highs, placing them among the top gainers in the S&P 500 for 2025.
Western Digital jumped 11% on Friday after projecting stronger-than-expected second-quarter earnings. Analysts at J.P. Morgan highlighted that the company has secured major purchase orders extending through 2026, reflecting customers’ urgency to secure storage capacity as AI data needs explode.
Rival Seagate also beat forecasts earlier this week, lifting its shares by 22%. Meanwhile, Sandisk—spun out of Western Digital earlier this year—has seen a fivefold rise in value since going public, underscoring the sector’s momentum.
The broader S&P 1500 tech hardware and storage index has risen over 12% in 2025, setting new records. With major players like Alphabet, Microsoft, Meta, and Amazon committing billions to chips and data centers, Goldman Sachs predicts global AI infrastructure investment could hit $3–4 trillion by 2030.
