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STX vs WDC
Which Stock Would AI Choose? Seagate Technology (STX) vs. Western Digital (WDC) Stock Comparison
Key Takeaways
- Both STX and WDC have surged on AI-driven demand for hard disk drives (HDDs), with WDC leading year-to-date returns at approximately 133% compared to STX's 117%.
- WDC trades at a lower trailing P/E (price-to-earnings) ratio of 37.88 versus STX's 67.10, suggesting relatively better valuation.
- Recent analyst price target increases highlight optimism for both, with STX targets up to $700 and WDC to $500, driven by HDD supply tightness.
- WDC shows stronger profitability with a 35.64% profit margin and higher net income of $3.95 billion (TTM) versus STX's $1.97 billion.
- The duopoly in HDDs positions both for sustained growth amid data center expansion, though WDC has a healthier debt-to-equity ratio of 65.44% compared to STX's 1,046.62%.
Introduction
Seagate Technology (STX) and Western Digital (WDC) dominate the hard disk drive (HDD) market, forming a duopoly essential for data storage in AI data centers and cloud infrastructure. This comparison analyzes their recent market performance, financial metrics, and growth drivers amid surging demand for high-capacity storage. Traders seeking momentum plays and investors eyeing long-term sector exposure will find value in understanding their relative positioning, valuation trade-offs, and sentiment shifts in the current environment.
STX Overview and Recent Performance
Seagate Technology Holdings plc (STX) designs and manufactures data storage solutions, focusing on enterprise nearline HDDs and SSDs (solid-state drives) for cloud and AI applications. Shares recently closed at $595.86, near the 52-week high of $607.89, reflecting robust momentum with a 117% year-to-date gain and over 629% in the past year. In recent weeks, investor sentiment has strengthened due to AI-fueled demand for mass-capacity drives and tight HDD supply, prompting analysts to raise price targets significantly, including to $700 by BofA Securities. Upcoming fiscal Q3 earnings are anticipated to show continued growth, building on prior quarters' revenue of $10.06 billion (TTM).
WDC Overview and Recent Performance
Western Digital Corporation (WDC) develops HDDs, SSDs, and data center platforms, serving similar hyperscale cloud and AI needs. The stock recently closed at $400.73, approaching its 52-week high of $416.37, with a standout 133% year-to-date return outperforming the sector. Recent market activity has been buoyed by strong earnings beats, elevated price targets up to $500 from Cantor Fitzgerald, and optimism around HDD supercycle dynamics tied to data explosion. Trailing twelve-month revenue stands at $10.73 billion, underscoring steady execution amid favorable sector tailwinds.
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Head-to-Head Comparison
Both companies operate near-identical business models in HDD-centric data storage, with exposure to AI-driven hyperscalers, but WDC edges in growth momentum, posting higher recent returns and revenue expansion of 25.2% quarterly versus STX's 21.5%. Valuation contrasts show WDC's more attractive P/E and superior profitability metrics, including a 35.64% margin, while STX carries elevated leverage risk from its debt load. Market sentiment favors both amid supply constraints, though WDC's stronger cash position ($4.04 billion) supports resilience. Sector risks like NAND flash competition apply equally, with trade-offs in stability versus upside potential from catalysts like earnings beats.
Tickeron AI Verdict
Tickeron’s AI currently leans toward WDC based on trend consistency, superior year-to-date performance, lower valuation multiples, and healthier balance sheet indicators amid shared AI storage tailwinds. While STX shows strong momentum, WDC's relative positioning offers a higher probability of outperformance in the near term, subject to evolving market dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is STX is a StrongBuy and WDC is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
STX’s FA Score shows that 4 FA rating(s) are green whileWDC’s FA Score has 4 green FA rating(s).
- STX’s FA Score: 4 green, 1 red.
- WDC’s FA Score: 4 green, 1 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
STX’s TA Score shows that 3 TA indicator(s) are bullish while WDC’s TA Score has 3 bullish TA indicator(s).
- STX’s TA Score: 3 bullish, 5 bearish.
- WDC’s TA Score: 3 bullish, 5 bearish.
Price Growth
STX (@Computer Processing Hardware) experienced а -13.29% price change this week, while WDC (@Computer Processing Hardware) price change was -12.57% for the same time period.
The average weekly price growth across all stocks in the @Computer Processing Hardware industry was -5.19%. For the same industry, the average monthly price growth was -13.77%, and the average quarterly price growth was +53.41%.
Reported Earning Dates
STX is expected to report earnings on Jul 16, 2026.
WDC is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Computer Processing Hardware (-5.19% weekly)Computer Processing Hardware industry produces central processing unit, monitor, keyboard, computer data storage devices, and graphics card. Business activity and economic growth are potential drivers of this industry – if more businesses are growing or flourishing, so would their investments in computer equipment. Dell Technologies, Inc, Hewlett Packard Enterprise Co., NCR Corporation are key producers of computer processing hardware.
| STX | WDC | STX / WDC | |
| Capitalization | 218B | 220B | 99% |
| EBITDA | 3.24B | 7.59B | 43% |
| Gain YTD | 227.576 | 240.677 | 95% |
| P/E Ratio | 98.54 | 43.84 | 225% |
| Revenue | 11B | 11.8B | 93% |
| Total Cash | N/A | 3.24B | - |
| Total Debt | 4.18B | 1.58B | 264% |
STX | WDC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 32 | 89 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 98 Overvalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 5 | 9 | |
SMR RATING 1..100 | 3 | 14 | |
PRICE GROWTH RATING 1..100 | 1 | 1 | |
P/E GROWTH RATING 1..100 | 2 | 10 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
WDC's Valuation (78) in the Computer Peripherals industry is in the same range as STX (98). This means that WDC’s stock grew similarly to STX’s over the last 12 months.
STX's Profit vs Risk Rating (5) in the Computer Peripherals industry is in the same range as WDC (9). This means that STX’s stock grew similarly to WDC’s over the last 12 months.
STX's SMR Rating (3) in the Computer Peripherals industry is in the same range as WDC (14). This means that STX’s stock grew similarly to WDC’s over the last 12 months.
STX's Price Growth Rating (1) in the Computer Peripherals industry is in the same range as WDC (1). This means that STX’s stock grew similarly to WDC’s over the last 12 months.
STX's P/E Growth Rating (2) in the Computer Peripherals industry is in the same range as WDC (10). This means that STX’s stock grew similarly to WDC’s over the last 12 months.
| STX | WDC | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 76% | 1 day ago 57% |
| Stochastic ODDS (%) | 1 day ago 78% | 1 day ago 76% |
| Momentum ODDS (%) | 1 day ago 74% | 1 day ago 73% |
| MACD ODDS (%) | 1 day ago 68% | 1 day ago 64% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 68% |
| TrendMonth ODDS (%) | 1 day ago 81% | 1 day ago 83% |
| Advances ODDS (%) | 10 days ago 77% | 14 days ago 81% |
| Declines ODDS (%) | 8 days ago 70% | 8 days ago 66% |
| BollingerBands ODDS (%) | 1 day ago 65% | 1 day ago 71% |
| Aroon ODDS (%) | 1 day ago 82% | 1 day ago 86% |
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STX and
Correlation & Price change
A.I.dvisor indicates that over the last year, STX has been closely correlated with WDC. These tickers have moved in lockstep 87% of the time. This A.I.-generated data suggests there is a high statistical probability that if STX jumps, then WDC could also see price increases.
| Ticker / NAME | Correlation To STX | 1D Price Change % | ||
|---|---|---|---|---|
| STX | 100% | N/A | ||
| WDC - STX | 87% Closely correlated | N/A | ||
| SNDK - STX | 65% Loosely correlated | N/A | ||
| NTAP - STX | 40% Loosely correlated | N/A | ||
| P - STX | 39% Loosely correlated | +8.95% | ||
| QBTS - STX | 29% Poorly correlated | +0.67% | ||
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WDC and
Correlation & Price change
A.I.dvisor indicates that over the last year, WDC has been closely correlated with STX. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if WDC jumps, then STX could also see price increases.
| Ticker / NAME | Correlation To WDC | 1D Price Change % | ||
|---|---|---|---|---|
| WDC | 100% | N/A | ||
| STX - WDC | 88% Closely correlated | N/A | ||
| SNDK - WDC | 68% Closely correlated | N/A | ||
| NTAP - WDC | 58% Loosely correlated | N/A | ||
| LOGI - WDC | 52% Loosely correlated | N/A | ||
| P - WDC | 40% Loosely correlated | +8.95% | ||
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