Seagate and Western Digital Poised for Strong HDD Growth in 2025 Amid Rising Cloud Demand

Disk-drive manufacturers Seagate Technology (NASDAQ: STX) and Western Digital Corporation (NASDAQ: WDC) are set for substantial growth in hard disk drive (HDD) sales in 2025. This boost is largely driven by rising demand from major cloud providers, spurred by advancements in AI. Leading enterprise players such as Microsoft and Amazon Web Services, which manage large data centers and dominate the cloud computing market, are expected to be key drivers of this demand. According to Visible Alpha, Seagate and Western Digital’s HDD revenues are projected to see a year-over-year increase of +45% and +41%, respectively, in fiscal 2025, compared to declines of -8% and a slight increase of +1% in fiscal 2024.

Average selling prices (ASPs) for these companies are also expected to rise, reversing the declines experienced last year due to reduced purchases by enterprise customers. This positive outlook follows a period of weak demand from cloud companies last year, which led to efforts to clear excess inventory. Additionally, reduced demand from China and lower tech spending contributed to last year’s challenges.

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