Data Storage Demand Seen as Continuing to Strengthen -- Market Talk

Dow Jones04-06

1030 ET - Hard disk drive demand is continuing to strengthen, with shortages likely to continue through 2028, say Morgan Stanley analysts. "Over the course of the last few weeks, our HDD checks have picked up sustained hyperscaler demand strength, elongating customer visibility, firmer pricing into 2027, and an overall improving HDD end-market," the analysts say. Hard disk drive companies have an attractive industry structure as an oligopoly benefiting from demand outpacing supply and no capacity growth. The analysts switch their top pick to Seagate from Western Digital due to valuation and their expectation that Seagate will expand its gross margin faster. Seagate surges 7.8% and Western Digital gains 4.7%. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

April 06, 2026 10:30 ET (14:30 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment