By Rick Orford
Publication Date: 2026-10-14 10:30:00
Nvidia (NVDA +0.97%) and Broadcom (AVGO +0.73%) may be top of mind when it comes to investing in artificial intelligence (AI), but the boom extends well beyond chips. Seagate Technology (STX -0.80%) is taking a different route, supplying the high-capacity storage needed to support the AI data center build-out.
With demand for storage only set to rise, this overlooked AI stock could be the one to watch in 2027. To see why, it helps to start with how much storage AI actually needs.
Image source: Getty Images.
The AI storage boom is already showing up in Seagate’s business
Every AI model needs enormous amounts of data to train and serve users. As companies generate more data and build more complex AI applications, they also need affordable ways to store that information at scale.
That’s where Seagate comes in. The company specializes in high-capacity hard disk drives (HDDs), which are essential to modern data centers. While solid-state drives (SSDs) are valuable for workloads that need fast access, HDDs offer high storage capacity at a lower cost.
Plus, the opportunity is enormous, since AI infrastructure spending doesn’t stop at compute power. It also creates huge demand for storage systems to preserve, manage, and retrieve data.
Seagate’s latest results suggest that this demand is already driving much of its business growth. In fiscal 2026 ended July 3, the company reported $12.2 billion in revenue, up 34% year over year, driven by stronger data center demand.
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