To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Seagate Stock Soars As Earnings Show Huge AI Demand For Hard-Drives | Investor's Business DailyANALYSIS: [AI Bubble Or Boom? Wall Street Weighs In]Investors.com will undergo scheduled maintenance from 10:00 PM ET to 2:00 AM ET and some features may be unavailable. We apologize for any inconvenience.---Seagate Technology (STX) stock rocketed higher Wednesday after the data storage company reported fiscal second-quarter results ahead of expectations. The gains add to a massive run for Seagate, which is benefi ...

The hard disk drive maker's second-quarter earnings are the latest bit of good news for the thriving flash-memory sector. ...

Five things to know ahead of today's opening bell. The Fed will announce its latest interest rate decision. That's coming at 2 PM Eastern time.Investors expecting no change in the federal funds rate, but we will be paying close attention to Fed Chair J Pal's news conference for any clues about the future of rate paths. Elephants Health, formerly known as Anthem, out with its fourth quarter results. Those earnings beat expectations.revenue was a little bit light. Eleance shares though were down 14% yesterday ...

Core Viewpoint - The memory stock sector, particularly companies like Seagate, Western Digital, and Micron, has seen significant gains, with some stocks rising over 30% in January 2026 and Sanders up more than 100% in the last three weeks [1][2]. Group 1: Earnings Expectations - Seagate's upcoming earnings report is highly anticipated, with expectations of stability in earnings due to long-term agreements that include price escalators [4][5]. - The current market sentiment is that while demand is strong, there are concerns about the ability to meet that demand, as indicated by tight supply conditions [5][7]. Group 2: Market Dynamics - The memory trade is now heavily influenced by AI, with data centers driving demand for memory products [4][9]. - Companies like Samsung and SKH Hynix are expected to report on their capacity and pricing strategies, which will impact the overall market dynamics [8][12]. Group 3: Competitive Landscape - The memory market consists of various players, including DRAM and NAND manufacturers, with Micron, Samsung, and SKH Hynix being key players in DRAM, while Western Digital and Seagate dominate the hard disk drive segment [12][14]. - The barriers to entry are higher in DRAM and hard disk drives compared to NAND, where competition is more intense, including from Chinese manufacturers [16][17]. Group 4: Future Outlook - The sustainability of high prices in the memory sector is uncertain, with potential declines in data center spending anticipated around 2028 to 2029 if AI advancements do not progress as expected [9][10]. - The overall growth of the memory sector is expected to continue, driven by the need for all three subsegments: DRAM, NAND, and hard disk drives [15].

Core Insights - SanDisk (SNDK) has surged 1,250% and Western Digital (WDC) has risen 400% over the past year, driven by significant investments in AI hardware by hyperscalers totaling $400 billion this year [1] - Western Digital exceeded Q3 EPS estimates by 13% and revenue estimates by 3.4%, indicating strong performance [1] - SanDisk trades at under 18 times FY 2027 earnings, while Western Digital trades at 22 times FY 2027 earnings, suggesting potential value in both stocks [1] Company Performance - SanDisk and Western Digital have experienced explosive growth due to the increasing demand for storage hardware in data centers, particularly driven by AI applications [1] - Western Digital's stock is perceived as undervalued despite trading at a premium compared to historical averages, with analysts expecting approximately 35% annual EPS growth and 17% annual revenue growth [1] - SanDisk, while smaller and riskier, reported $112 million in net income in Q3 2025, significantly lower than Western Digital's $1.2 billion, but has potential for higher growth due to AI spending [1] Market Dynamics - The ongoing data center buildout is not cyclical and has been consistent for the past three years, with expectations for further acceleration [1] - The NAND shortage has led to increased SSD prices, benefiting SanDisk as AI companies invest heavily in faster hardware [1] - Analysts suggest that if AI growth continues, SanDisk could outperform Western Digital, with potential for SNDK stock to double if the market values it at 35-40 times forward earnings [1] Investment Strategy - A balanced investment approach between SNDK and WDC is recommended, with a more aggressive stance on SNDK for those confident in sustained AI growth [1] - Western Digital's contracts are described as "stickier," which may provide stability in demand, especially if AI companies shift back to HDDs due to cost considerations [1]

Core Viewpoint - Western Digital Corporation (WDC) is expected to report second-quarter fiscal 2026 results on January 29, with earnings projected to rise by 9.6% year-over-year, while revenues are anticipated to decline by 31% compared to the prior year [2][3]. Financial Performance - The Zacks Consensus Estimate for earnings is $1.94, with management projecting non-GAAP earnings of $1.88 (+/- 15 cents) [2][3]. - Revenue estimates are pegged at $2.95 billion, with a mid-point guidance of $2.9 billion (+/- $100 million), indicating a 20% year-over-year growth [3][8]. - WDC has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 9.18% [3][4]. Earnings Expectations - WDC has an Earnings ESP of +1.93% and a Zacks Rank of 1 (Strong Buy), indicating a high probability of an earnings beat [5][6]. - The company expects non-GAAP gross margin to be between 44% and 45%, with operating expenses projected to decline to $365 million–$375 million [7][8]. Growth Drivers - WDC's focus on innovation and operational discipline positions it well to benefit from the AI-driven increase in data creation and storage demand [6][9]. - The company is making progress on Heat-Assisted Magnetic Recording (HAMR) technology, with qualifications expected to begin with hyperscale customers in 2026 [9][10]. - Partnerships, such as with Qolab for advanced nanofabrication technologies, are aimed at enhancing product performance and scalability [10]. Market Position - WDC's shares have increased by 249.1% over the past six months, outperforming the Zacks Computer-Storage Devices industry, which rose by 97.5% [12]. - The company has outperformed competitors like Seagate Technology Holdings plc (STX) and NetApp, Inc. (NTAP) during the same period [13]. Valuation Metrics - WDC's shares currently trade at a price/earnings ratio of 25.59, compared to the industry average of 19.01 [14][17]. Investment Outlook - The demand for storage driven by AI and cloud customers is expected to sustain growth, with strong nearline high-capacity drive demand acting as a tailwind for earnings [18][19].

Group 1 - Sandisk Corporation (NASDAQ:SNDK) has seen significant stock performance, with a notable rally of 371% after being spun off from its parent company in February [2] - The company specializes in NAND flash-based storage solutions, including solid-state drives, embedded storage, removable cards, and USB drives [2] - Jim Cramer highlighted that Sandisk and Western Digital are key players in the data storage sector, expecting positive market reception despite Sandisk's substantial price increase [1][2] Group 2 - Sandisk is currently positioned as a top performer in the data storage and memory industry, with four out of the top five performers in this sector [2] - The stock's performance is attributed to its strong presence in data centers, indicating a robust demand for its products [2] - There are suggestions that while Sandisk is a strong investment, certain AI stocks may offer greater upside potential with less downside risk [3]

Seagate Technology Holdings plc (NASDAQ:STX) is one of the stocks in focus as Jim Cramer shared his weekly game plan. Cramer highlighted the stock’s surge due to an increase in demand, as he commented: After the close, we have our first big shortage stock, and that’s Seagate. This maker of storage and memory chips has been making a fortune because no one saw the massive surge in demand from the data center coming except for a handful of companies, including this one. Stock’s up over 25% for the year. You ...

Market Overview - The global financial landscape is experiencing significant volatility and a rotation across asset classes, particularly towards small-cap stocks as investors move away from high-valuation mega-cap technology stocks [1] - Technology stocks have underperformed in January, with concerns over AI-related valuations and rising interest rates contributing to this trend [1] - The commodities market has seen a remarkable surge, with silver prices increasing by over 44% in January and natural gas prices spiking more than 70% in the past week due to a severe cold spell [1] Regional Economic Insights - Asian equities, especially in Korea, have shown strong performance, with the Korean market up 18% in January [2] - The U.S. dollar has declined sharply, with the DXY index dropping 1.80% over the week, impacting market sentiment [2] - U.S. GDP growth has been revised higher to 4.4%, but persistent inflation and geopolitical tensions continue to affect market dynamics [2] Inflation and Economic Indicators - The divergence between CPI and PPI indicates ongoing inflationary pressures, with the November core PCE price index rising 0.2% monthly and 2.8% annually, remaining above the Fed's 2% target [6] - Consumer sentiment is improving monthly but remains 20% lower year-over-year due to high prices [6] Precious Metals and Commodities - Gold prices surged by 8% this week, while silver saw a 15% weekly gain, driven by a weakened U.S. dollar [6] - The demand for precious metals is rising as a hedge against inflation and dollar depreciation, although the rapid increase in silver prices suggests potential volatility [6] - Natural gas prices have experienced extreme volatility, driven by weather conditions, with a forecast for continued monitoring of inventory reports [6][7] Technology Sector Trends - The technology sector, particularly software stocks, is under pressure due to concerns over AI valuations and a broader rotation away from mega-cap tech stocks [6] - Major tech earnings from companies like Microsoft, Apple, and Tesla are expected to influence investor sentiment significantly [8] Market Outlook - The upcoming week is anticipated to be marked by higher volatility as investors navigate a dense schedule of high-impact earnings and a pivotal Federal Reserve meeting [8] - The EIA Crude Oil and Natural Gas Inventories reports will be critical for assessing supply constraints following recent price spikes [8]