Yahoo Finance analysis points out that Western Digital (WDC) and Seagate Technology (STX), as key hardware suppliers for AI infrastructure, have both significantly outperformed the S&P 500 index this year. Seagate Technology's stock price has risen by 575% year-to-date, while Western Digital's has increased by 287%.

In their recent Q4 FY2026 earnings reports, Western Digital's revenue grew by 44% year-over-year with a gross margin of 54.1%; Seagate Technology reported revenue of $3.6 billion, a 48% year-over-year increase, with a gross margin of 52.3%. Both companies expect Q1 FY2027 revenue to be approximately $4.1 billion. Analysts believe that although Seagate Technology's revenue growth is slightly higher, Western Digital currently has a forward P/E ratio of 22x, which is lower than Seagate Technology's 24x, making its valuation more attractive.