Investors Reprice Seagate and Western Digital on AI Data-Center Demand
Visible hedge-fund buying and strong company guidance have sent markets to expect sustained cloud orders for high-capacity storage.
Overview
- Seagate and Western Digital rallied as investors rotated into storage stocks, with Seagate up about 6.3% and Western Digital up about 5.9% on Friday even as the S&P 500 slipped.
- Quarterly filings show professional ownership rose in Q2, with Seagate held by 131 hedge funds and Western Digital held by 98, signaling wider institutional participation behind the move.
- Western Digital reported stronger-than-expected fiscal Q4 results and guided Q1 fiscal 2027 revenue near $4.1 billion with EPS of $3.85 to $4.15, which analysts say helped fuel the rally.
- Insider activity drew attention as director Stephanie Streeter's family trust sold 5,600 WDC shares for about $2.52 million and CEO Irving Tan sold roughly $8.9 million of stock in August under a Rule 10b5-1 plan.
- Analysts warn the stock rerating depends on execution because the storage market is cyclical, so investors are watching capacity shipments, average selling prices, inventory days, and continuing cloud orders to see if AI demand creates durable cash flow.