Seagate Soars 10% as CoreWeave’s “Breakout Quarter” Eases AI Spending Fears

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Key TakeawaysSeagate shares rose 10% today after CoreWeave beat estimates and raised its 2026 guidance. The selloff in Seagate and Western Digital went well beyond any slowdown in AI storage demand.

Seagate Technology (STX:NASDAQ) is up 10% today after CoreWeave reported what CEO Michael Intrator called "a breakout quarter."

Seagate had dropped about 30% in a month by early November on fears that AI spending was running out of road. Its closest rival, Western Digital (WDC:NASDAQ), is up 8%. Dell Technologies (DELL:NYSE), which counts CoreWeave among the customers it builds AI clusters for, reports on Nov. 24.

CoreWeave's third-quarter revenue jumped 168% to $3.66 billion, and its backlog reached $132.5 billion. It raised the low end of its 2026 capex range to $37 billion.

Storage is part of that bill. CoreWeave signed a multi-year deal for priority access to SSD capacity from Solidigm, a subsidiary of SK hynix (SKHY:NASDAQ). SK hynix is up 10% and Sandisk (SNDK:NASDAQ) is up 14%, since both sell the flash memory inside those drives.

For Seagate, data center revenue was $3.4 billion in the quarter to Oct. 2, 81% of the total.

Western Digital's revenue rose 55% in its quarter to Oct. 2, and it expects growth of 66% to 72% this quarter. Both drive makers sold off even as they guided higher, which I read as a swing in the market's mood about AI.

Dell is the next check on that spending. It ended July with a record $95 billion AI server backlog. If that backlog holds when Dell reports, those servers will need somewhere to keep their data.

See the full breakdown of Buy, Hold, and Sell ratings on Seagate Technology, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Seagate Technology's Analyst Ratings

Analysts expect Seagate's earnings to keep climbing fast through fiscal 2028:

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