The “AI infrastructure” commerce has moved from chips to storage, and the strikes have gotten meme-like.
We now have seen a historic repricing within the reminiscence and storage sector prior to now few months. Should you thought the semiconductor rally was drained, have a look at the {hardware} board immediately. Cash is rotating aggressively into legacy storage names on bets that knowledge heart capability is the brand new bottleneck for generative AI.
Seagate (STX) is the standout chief, skyrocketing 19% to smash by way of the $440 degree. The inventory has gone vertical, at present buying and selling at $443.79. Seagate reported fiscal Q2 2026 outcomes this morning that crushed Wall Road expectations with HAMR laborious drives offered out by way of end-2026. The catalyst seems to be a mixture of brief overlaying and fears of an HDD scarcity for hyperscale knowledge facilities.
STX inventory, every day
However the true story continues to be the post-spin-off efficiency of Sandisk (SNDK).
Since separating from Western Digital final 12 months, Sandisk has been a relentless compounder, however immediately’s transfer is one thing else. Shares are up one other 7.8% to $519.00, extending a run that’s beginning to look crowded however exhibits no signal of stopping. It is up 960% in simply 11 months. The narrative is easy: AI wants quick storage, and NAND pricing energy has returned with a vengeance. It is gotten so dangerous the PC builders are fearful that house PCs will likely be a factor of the previous as costs get too excessive. The a number of has jumped to 30-40x from 8-10x for years.
Western Digital (WDC) is becoming a member of the occasion, up 10% to $278.54, lastly catching a bid because the valuation hole between it and its former unit narrows.
Even Intel (INTC) is discovering pals, reclaiming the $49 deal with (up 11%) because the rising tide lifts all {hardware} boats. That is turn out to be one thing of a state-backed driver.
For now, the pattern is your pal, however the verticality of those strikes suggests we’re within the “panic shopping for” section of the cycle.
