Markets Score 55 Neutral

Seagate and Western Digital Share Gains Slow Amid Persistent AI Demand

Apr 01, 2026 12:58 UTC

SE, WDC, XLK

Short term

Shares of Seagate Technology and Western Digital have retreated from recent highs, though analysts remain optimistic about sustained demand for hard-disk drives driven by artificial intelligence.

Seagate and Western Digital stocks retreated from triple-digit rallies in March
Analysts affirm robust AI-driven demand for hard-disk drives
Evercore ISI highlights durable tailwinds for HDD market
Tech sector focuses on AI's impact on storage infrastructure

Stocks of Seagate Technology (STX) and Western Digital (WDC) have seen a pullback in March following significant gains. While the momentum has cooled, industry analysts highlight that the underlying demand for hard-disk drives (HDDs) remains strong, particularly due to artificial intelligence (AI) applications. Evercore ISI analyst Amit Daryanani noted that AI-driven data demand continues to provide a durable tailwind for the HDD market. The tech sector, especially storage and data infrastructure, is closely watching how this demand translates into long-term growth. Investors are advised to monitor the balance between market corrections and the potential for sustained AI-related opportunities in the storage industry.