The video highlights the dramatic rise of lesser-known AI-related stocks, especially data storage companies like Seagate, Western Digital, SanDisk, and Micron, which have significantly outperformed major AI firms due to soaring demand for storage driven by AI expansion. This surge is fueled by tech companies’ heavy investment in data centers and the resulting supply constraints, leading to record revenues and stock prices for storage manufacturers.
The video discusses the recent surge in lesser-known AI-related stocks, particularly those in the data storage sector, which have outperformed more prominent AI companies like Nvidia and Alphabet in 2025. While Nvidia and Alphabet saw gains of 35% and 65% respectively, hard drive manufacturers Seagate and Western Digital experienced remarkable growth of over 220% and 300%. Flash memory companies such as SanDisk and Micron Technology saw even more dramatic increases, with SanDisk up around 850% and Micron up 230% year-over-year. This growth is attributed to the skyrocketing demand for data storage driven by the expansion of AI technologies, which require vast amounts of storage for text, images, audio, and video.
Experts like Carl Arian from BNP Paribas highlight that as AI-generated content proliferates, the need for storage grows exponentially, especially since multimedia files require much more space than text. The video notes that tech companies are investing heavily in data centers to accommodate this demand, with McKinsey estimating $800 billion will be spent on storage in the next five years. Although this is only a portion of the $3.5 trillion projected to be spent on GPUs and CPUs, it has been enough to propel storage company stocks to record highs.
The resurgence of hard drive manufacturers is particularly notable given their near-collapse a decade ago. In the 2010s, the rise of flash drives for consumer devices led to a sharp decline in the hard drive market, resulting in bankruptcies, factory closures, and industry consolidation. From about 20 global hard drive companies in the 1990s, only Seagate, Western Digital, and Toshiba remain major players today. To survive, these companies drastically reduced supply, which has now positioned them well as demand rebounds.
This renewed demand is largely due to the needs of data centers, which use hard drives for “cold storage” or long-term data retention, as they are up to ten times cheaper than flash storage. CJ Muse from Canaccord Genuity notes that hard drives are currently in short supply, with manufacturers being cautious about expanding production after the hardships of the previous decade. This supply discipline has contributed to the sharp rise in revenues and stock prices for the remaining hard drive companies.
Financial results reflect this turnaround: Seagate reported $2.6 billion in revenue for the quarter ending October 2025, up 21% year-over-year, and $9 billion for the fiscal year ending June 2025, a 39% increase. Western Digital posted $2.8 billion in quarterly revenue (up 27%) and $9.5 billion for the year (up 51%). Flash memory companies like SanDisk and Micron, as well as international players such as Samsung and SK Hynix, have also benefited. SanDisk’s quarterly revenue rose 23% to $2.3 billion, while Micron’s jumped 56% to $13.6 billion. The video concludes by directing viewers to Alicia Park’s full article on Forbes.com for more details.