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Beyond Micron: 2 AI Infrastructure Stocks With Massive Upside Ahead
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Key Takeaways
Seagate expects higher Q4 FY2026 revenues, backed by strong AI-driven demand for high-capacity storage.
WDC forecasts stronger Q4 FY2026 revenues and higher margins as AI storage demand stays resilient.
STX and WDC project solid earnings growth, supported by improving profitability and AI infrastructure demand.
Micron Technology, Inc.’s (MU - Free Report) shares have delivered phenomenal returns of more than 600% over the past year, and the company surpassed the $1 trillion market capitalization mark in late May 2026. The company has moved beyond its traditional classification as a cyclical memory chip maker and has become an essential supplier in the AI infrastructure ecosystem.
Unprecedented demand for Micron’s cutting-edge high-bandwidth memory chips used in artificial intelligence (AI) servers, along with a strategic partnership with Anthropic, including a multi-year storage supply agreement, has fueled investors’ optimism and driven its shares upward.
However, Micron’s shares recently experienced volatility as investors raised concerns that the memory cycle could be approaching a peak. The stock also pulled back after the company’s fiscal third-quarter 2026 earnings, as investors took profits following a substantial rally ahead of earnings.
While Micron’s pullback isn’t due to any meaningful deterioration in its AI business fundamentals, the stock’s latest volatility highlights the importance of diversification within the AI infrastructure framework. Investors looking to capture similar long-term growth trends should consider other beneficiaries of the AI buildout.
Two companies that deserve attention are Seagate Technology Holdings plc (STX - Free Report) and Western Digital Corporation (WDC - Free Report) , as they have delivered impressive gains of 504.7% and 774% over the past year. Let’s examine the key catalysts that could support further upside in these AI infrastructure stocks –
Seagate’s AI Storage Boom Drives Growth and Upside
Fueled by growing data-center storage demand, improving margins and robust cash flows, Seagate is well-poised for continued growth. These tailwinds could translate into additional gains in Seagate’s share price, positioning it as a potential long-term AI infrastructure winner similar to Micron’s rise.
Seagate expects revenues of around $3.45 billion, plus or minus $100 million, for the fiscal fourth quarter of 2026, up from $3.11 billion generated in the fiscal third quarter of 2026, according to investors.seagate.com. The sustained revenue growth momentum reflects strong customer demand for its high-capacity storage solutions.
Seagate’s strong 47% non-GAAP gross margin in the fiscal third quarter highlighted improved operational efficiency and expanding profitability. At the same time, its $953 million in free cash flow underscored the strength of its core business. As a result, the company’s expected earnings growth rate for the current year is 84.3%. The Zacks Consensus Estimate of $14.93 for STX’s earnings per share (EPS) is up 47.5% year over year.
Image Source: Zacks Investment Research
Western Digital’s AI Storage Boom Could Drive More Upside
Western Digital is well-positioned to accelerate growth by increasing the sales of higher-value enterprise HDDs amid strong pricing conditions. For the fiscal third quarter of 2026, Western Digital’s revenues totaled $3.34 billion, up 45% from a year earlier, according to the company’s press release.
Moreover, the company expects revenues for the fiscal fourth quarter of 2026 to be even stronger, at $3.65 billion, plus or minus $100 million. The strong outlook reflects resilient demand for AI infrastructure, as cloud and enterprise customers expand high-capacity storage to support AI growth.
The company’s improving gross margin has further strengthened its financial position, enabling more investment in research and development, stronger earnings growth, and supporting long-term share price gain. For the fiscal third quarter, Western Digital’s non-GAAP gross margin increased to 50.5% from 40.1% a year ago. Additionally, the company expects non-GAAP gross margin to increase to 51-52% in the fiscal fourth quarter of 2026.
Consequently, the company’s expected earnings growth rate for the current year is 104.1%. The Zacks Consensus Estimate of $10.06 for WDC’s EPS is up 54.8% year over year.
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Beyond Micron: 2 AI Infrastructure Stocks With Massive Upside Ahead
Key Takeaways
Micron Technology, Inc.’s (MU - Free Report) shares have delivered phenomenal returns of more than 600% over the past year, and the company surpassed the $1 trillion market capitalization mark in late May 2026. The company has moved beyond its traditional classification as a cyclical memory chip maker and has become an essential supplier in the AI infrastructure ecosystem.
Unprecedented demand for Micron’s cutting-edge high-bandwidth memory chips used in artificial intelligence (AI) servers, along with a strategic partnership with Anthropic, including a multi-year storage supply agreement, has fueled investors’ optimism and driven its shares upward.
However, Micron’s shares recently experienced volatility as investors raised concerns that the memory cycle could be approaching a peak. The stock also pulled back after the company’s fiscal third-quarter 2026 earnings, as investors took profits following a substantial rally ahead of earnings.
While Micron’s pullback isn’t due to any meaningful deterioration in its AI business fundamentals, the stock’s latest volatility highlights the importance of diversification within the AI infrastructure framework. Investors looking to capture similar long-term growth trends should consider other beneficiaries of the AI buildout.
Two companies that deserve attention are Seagate Technology Holdings plc (STX - Free Report) and Western Digital Corporation (WDC - Free Report) , as they have delivered impressive gains of 504.7% and 774% over the past year. Let’s examine the key catalysts that could support further upside in these AI infrastructure stocks –
Seagate’s AI Storage Boom Drives Growth and Upside
Fueled by growing data-center storage demand, improving margins and robust cash flows, Seagate is well-poised for continued growth. These tailwinds could translate into additional gains in Seagate’s share price, positioning it as a potential long-term AI infrastructure winner similar to Micron’s rise.
Seagate expects revenues of around $3.45 billion, plus or minus $100 million, for the fiscal fourth quarter of 2026, up from $3.11 billion generated in the fiscal third quarter of 2026, according to investors.seagate.com. The sustained revenue growth momentum reflects strong customer demand for its high-capacity storage solutions.
Seagate’s strong 47% non-GAAP gross margin in the fiscal third quarter highlighted improved operational efficiency and expanding profitability. At the same time, its $953 million in free cash flow underscored the strength of its core business. As a result, the company’s expected earnings growth rate for the current year is 84.3%. The Zacks Consensus Estimate of $14.93 for STX’s earnings per share (EPS) is up 47.5% year over year.
Image Source: Zacks Investment Research
Western Digital’s AI Storage Boom Could Drive More Upside
Western Digital is well-positioned to accelerate growth by increasing the sales of higher-value enterprise HDDs amid strong pricing conditions. For the fiscal third quarter of 2026, Western Digital’s revenues totaled $3.34 billion, up 45% from a year earlier, according to the company’s press release.
Moreover, the company expects revenues for the fiscal fourth quarter of 2026 to be even stronger, at $3.65 billion, plus or minus $100 million. The strong outlook reflects resilient demand for AI infrastructure, as cloud and enterprise customers expand high-capacity storage to support AI growth.
The company’s improving gross margin has further strengthened its financial position, enabling more investment in research and development, stronger earnings growth, and supporting long-term share price gain. For the fiscal third quarter, Western Digital’s non-GAAP gross margin increased to 50.5% from 40.1% a year ago. Additionally, the company expects non-GAAP gross margin to increase to 51-52% in the fiscal fourth quarter of 2026.
Consequently, the company’s expected earnings growth rate for the current year is 104.1%. The Zacks Consensus Estimate of $10.06 for WDC’s EPS is up 54.8% year over year.
Image Source: Zacks Investment Research
Both Seagate and Western Digital have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.