AI-driven data growth boosts demand for high-capacity storage, lifting Seagate and Western Digital stocks.

The rise of AI and generative AI like ChatGPT is driving a surge in demand for large-scale data storage, benefiting HDD and SSD makers Seagate and Western Digital. While GPUs handle AI computations, vast datasets require cost-effective storage solutions, with HDDs favored for capacity and SSDs for speed. Both companies report strong revenue growth and investor interest as hyperscalers expand AI infrastructure, with Seagate focusing on advanced HAMR technology for higher density and Western Digital on operational execution and pricing discipline. This shift highlights storage's critical role in AI beyond traditional PC and enterprise markets, signaling a long-term industry transformation.