Seagate Lifts $3.45 Billion Outlook, Wdc Stock Rises

Wdc stock rose on Wednesday after Seagate Technology lifted its June-end revenue outlook to $3.45 billion, plus or minus $100 million, on AI-driven demand. That midpoint is roughly 40% higher than a year earlier and above analysts’ $3.13 billion estimate, keeping Western Digital and Sandisk among the day’s top S&P 500 gainers.

Romano Ties Growth to AI Demand

Gianluca Romano, Seagate’s chief financial officer, said Tuesday evening that “AI is reshaping data into a strategic asset” during the company’s earnings call. Seagate also forecast adjusted earnings per share of $5, plus or minus 20 cents, giving investors a sharper read on how quickly storage demand is building ahead of the June-end quarter.

Wednesday’s move was not limited to one stock. Western Digital and Sandisk extended their rallies after the update, with traders leaning into the idea that more AI spending by large technology companies can translate into more demand for data storage hardware. Alphabet, Amazon, Meta and Microsoft were also set to report their latest results later in the day, adding another potential check on whether that spending is broadening.

Western Digital and Sandisk on Thursday

Thursday after the market’s close brings the next test for the trade: Sandisk and Western Digital are due to report earnings. If their results echo Seagate’s demand outlook, the rally in memory and storage names has a cleaner foundation; if not, Wednesday’s gains may look more like a short-term bet on AI spending than a lasting shift in fundamentals.