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zacks.comOCT 292 min read$WDC

Western Digital vs. Seagate: Best AI Stock to Buy After Earnings

Western Digital (WDC) and Seagate (STX) reported strong Q1 2027 earnings, driven by AI-related storage demand. WDC's revenue rose 55% YoY to $4.38B, with EPS at $4.64. STX's revenue increased 61% YoY to $4.23B, with EPS at $7.68. Both companies forecast continued growth, with STX showing higher ROE (386.9% vs. WDC's 57.9%) and a slightly lower P/E ratio (19.01 vs. 19.37).

Original reporting
zacks.com
Published Oct 29, 2026, 6:30 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Oct 29, 2026, 6:43 PM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
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Western Digital vs. Seagate: Best AI Stock to Buy After Earnings — source image
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Decision brief

The 30-second read

$WDCBullishHigh
01

Why it matters

Both companies beat revenue and earnings expectations and raised guidance, providing fresh material for traders.

02

Market read

First‑report earnings with strong beats and raised guidance for two large‑cap AI‑exposed stocks.

03

What to watch

Supply‑chain constraints or higher component costs could temper margin expansion.

Relevance 9/10Novelty 9/10Timing: today

Background

The article compares Western Digital and Seagate after both released FY2027 Q1 results, highlighting AI‑driven storage demand.

Company-level read

Ticker impact

$WDCBullishHigh confidence
Context

Western Digital reported FY2027 Q1 revenue of $4.38B (+55% YoY) and raised FY2027 Q2 revenue guidance to $5.1B, indicating strong AI-driven demand.

Expected impact

likely upward pressure as the market prices in the revenue beat and raised guidance

Evidence & confidence

Revenue beat and margin expansion are material, and guidance raises expectations for the next quarter.

$STXBullishHigh confidence
Context

Seagate posted FY2027 Q1 revenue of $4.23B (+61% YoY) with non‑GAAP EPS $7.68 and lifted Q2 revenue outlook to $4.8B, showing superior profitability.

Expected impact

likely upward pressure as investors reward the earnings beat and strong cash flow

Evidence & confidence

Earnings beat, record free cash flow, and raised guidance are fresh, material information.

Market effects

Sector

AI‑driven storage demand boosts the broader data‑center hardware sector.

Regional

U.S. technology stocks may see a lift from the earnings surprise.

Global

Strong AI storage growth signals continued capital spending worldwide.

Counterpoint

What could challenge this read

If AI demand plateaus, the high valuations could face pressure.

Key entities

  • company
    Western Digital Corporation

    U.S. data‑storage hardware manufacturer.

  • company
    Seagate Technology Holdings plc

    U.S. data‑storage hardware manufacturer.

Read at source← All news

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