Western Digital (WDC) and Seagate (STX) shares rose sharply in early March 2026, fueled by growing expectations of heightened data storage needs from artificial intelligence, particularly in video generation and processing. The rally reflects broader momentum in semiconductor and data center infrastructure equities.
- WDC stock rose 12.3%, STX gained 14.7% on March 4, 2026
- Enterprise storage orders up 37% YoY, driven by AI video workloads
- Hyperscalers invested $28B in storage infrastructure in Q1 2026
- AI video models require up to 10x more storage than traditional AI systems
- NVDA and AMD data center revenue grew 22% and 18% YoY in Q1 2026
- Storage capacity forecasts revised up 25% for 2026
Western Digital and Seagate reported stronger-than-expected second-quarter guidance, citing accelerating demand for high-capacity storage solutions amid rapid AI adoption. WDC's stock climbed 12.3% on March 4, 2026, while STX gained 14.7%, outpacing the broader technology sector. Both companies highlighted a 37% year-over-year increase in orders for enterprise-grade SSDs and hard drives, driven by cloud providers and AI startups scaling video AI models. The surge follows a broader trend in data center expansion, with hyperscalers investing $28 billion in storage infrastructure through Q1 2026. AI video applications—such as real-time content generation and multimodal AI systems—require up to 10 times more storage per model than traditional AI workloads, according to internal analyses from major cloud providers. This shift is expected to sustain demand for enterprise storage through 2027. Semiconductor demand linked to storage is also rising, with NVDA and AMD reporting 22% and 18% growth respectively in their data center revenue segments in Q1, reflecting the increased need for compute and memory bandwidth to support AI data pipelines. The CL=F crude oil futures benchmark was stable at $84.30, indicating no immediate disruption to supply chains. Investors are now pricing in a structural shift, with analysts revising 2026 storage capacity forecasts upward by 25%. The momentum is not limited to WDC and STX—companies like Micron Technology and Kioxia are also seeing increased order visibility. The trend underscores the growing importance of data infrastructure in the AI economy.