Wall Street Bullish on Data Storage Firms Amid AI Demand Surge
Micron Technology, Western Digital, and Seagate Technology stocks rallied sharply Thursday as analysts raised price targets, citing structural shortages in memory hardware and accelerating AI-driven demand. The gains defied broader market weakness fueled by U.S.-China trade tensions and government shutdown risks.
Citi and UBS highlighted Micron's exposure to high-bandwidth memory for AI accelerators, while Wedbush upgraded hard-drive makers Western Digital and Seagate. The moves reflect a growing consensus that infrastructure providers stand to benefit disproportionately from AI adoption.
The storage sector has become a critical bottleneck for AI deployment, with supply constraints persisting despite capacity expansions. As large language models require exponentially more training data, demand for both DRAM and NAND flash memory continues to outstrip supply.
