In an AI boom that has made investor darlings out of chip makers like Nvidia and software developers like OpenAI, the lowly hard drive is enjoying a resurgence that investors are only starting to reward.
Hard-drive makers Western Digital WDC 4.17%increase; green up pointing triangle and Seagate STX 1.54%increase; green up pointing triangle Technology Holdings, the two largest players in the industry, both reported around 30% higher revenue in their latest quarters. That may not be an Nvidia- or Oracle-style inflection. But hard-drive makers have been riding the coattails of companies like those to growth that would have been unthinkable a few years ago.
Underpinning the boost is artificial intelligence’s voracious consumption of digital storage and rising prices for higher-capacity drives.
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