Not Nvidia. Not Micron. This Underappreciated AI Stock Could Be 2027's Biggest Winner.

Seagate Technology (STX) shares fell 27.16% in a month, despite reporting strong Q1 2027 earnings. Analysts remain bullish, with an average price target of $1,091.58, implying 63.4% upside. The company's revenue grew 61.0% YoY, driven by AI storage demand. However, investor concerns about AI infrastructure spending have led to a sell-off. Seagate's management guided Q2 revenue of $4.80B and EPS of $9.20, above consensus estimates.

SK Hynix (SKHY) reported a 632% increase in operating profit and a $45B shareholder return plan, causing its shares to rise 8% premarket. Micron (MU), SanDisk (SNDK), and Western Digital (WDC) also saw gains. SKHY's revenue and operating profit set records, but net profit missed estimates. The company's pledge follows shareholder demands for better payouts.

Western Digital (WDC) stock fell 3.0% post-earnings but rebounded 7.5% by October 27, 2026. The company reported a 55.5% revenue increase in fiscal Q1 2027, with prices rising 28% YoY, outpacing a 22% increase in storage shipped. Management forecasts 69% sales growth in fiscal Q2 2027 and expects gross margins to reach 60-61%. Exabyte growth is below target but expected to accelerate with new products.

Western Digital (WDC) stock has fallen over 50% from its June high of nearly $800, despite strong Q1 2027 earnings with $4.4B revenue (up 55% YoY) and $2B operating income (up 158% YoY). The company raised its dividend by 17%, citing confidence in future growth. However, investor sentiment is bearish due to competition and potential AI spending slowdown. WDC's stock is down 26% in 3 months, underperforming the tech sector and even Micron Technology.

Bank of America's positive note on memory chip demand boosts Micron (MU), Western Digital (WDC), and SanDisk (SNDK) stocks. MU rose 4% to $913.77, WDC gained 5% to $362.32, and SNDK increased 3% to $1,271.99. The analyst cited longer customer contracts (3-5 years) as a stabilizing factor for the cyclical industry.

AI-related stocks rose Monday after Anthropic filed for an IPO, with Nvidia up 3% and Microsoft, Amazon, and others gaining. Analysts suggest a successful Anthropic IPO could reshape AI sector valuations, potentially diverting capital from tech giants. Shares of CoreWeave, Nebius, Micron, and others also increased. The broader semiconductor index rose over 3%.