Jan. 2 at 8:28 PM
AI-driven data growth has transformed Seagate, Western Digital, and Micron from deep-value laggards into the top-performing stocks of 2025, far outpacing the Magnificent Seven. Demand for AI workloads is pushing unprecedented needs for both high-capacity storage and advanced memory, driving record profits and margins.
Seagate and Western Digital benefit from surging demand for large-capacity hard disk drives used by hyperscale data centers, while Micron is capitalizing on explosive growth in high-bandwidth memory (HBM), a critical component for AI systems. Micron expects the HBM market to grow roughly 40% annually through 2028, potentially reaching
$100 billion.
Unlike past memory booms that ended in oversupply and price crashes, today’s industry is highly consolidated. A small number of players dominate hard drives and DRAM, and management teams have signaled discipline in capacity expansion, focusing instead on efficiency and density gains.
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