4 High-Flying Memory & Storage Giants to Gain More Amid NVDA's Solid Q2

NVIDIA Corp. NVDA delivered another strong quarterly performance as AI infrastructure demand lifted second-quarter fiscal 2027 results above expectations. Revenues surged 106% year over year primarily driven by the robust performance of the Data Center segment. The adjusted earnings per share (EPS) jumped 120% year over year.

Data Center revenues jumped 117% year over year and 18% sequentially, with Blackwell Ultra infrastructure driving the record performance. Growth also reflected demand from AI natives, enterprises and sovereign customers, along with hyperscalers using AI clouds.

For the third quarter of fiscal 2027, NVDA expects revenues of $108 billion, +/- 2%, excluding China sales. Management expects Vera Rubin to represent about 20% of Data Center revenues in the quarter.

This blockbuster performance and guidance will provide more stimulus to those memory and storage giants that have significantly scaled up purchase commitments and procurement relationships with NVDA. 

Four such stocks are: Micron Technology Inc. MU, Sandisk Corp. SNDK, Seagate Technology Holdings plc STX and Western Digital Corp. WDC. These stocks have skyrocketed year to date and have more upside left.

The chart below shows the price performance of five above-mentioned stocks year to date.

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Micron Technology Inc.

Micron has been benefiting tremendously from the enormous application of AI in day-to-day life, which has pushed up the demand for memory chips. This has resulted in more AI semiconductor sales, implying the need for multiple AI memory chips to operate. Flash memory technologies like DRAM and NAND are used in AI chips, enabling them to perform optimally. 

This has pushed up the demand for AI-enabled memory chips. In their last earnings reports, all five major hyperscalers highlighted a shortage of memory and storage chips, resulting in soaring prices of these products. As a result, MU benefits significantly. 

MU’s gross margin climbed to 84.9% in the last reported quarter from 74.9% in the prior quarter and 39% in the year-ago period. This proved how the high-bandwidth memory shortage is helping these high-end memory developers to increase prices in a world of AI-powered data center boom.

MU has meaningful exposure to AI, cloud data centers, industrial IoT and autonomous vehicles, all of which require increasingly advanced memory solutions. As AI adoption accelerates, demand for DRAM and NAND products continues to rise. MU currently carries a Zacks Rank #2 (Buy). 

Solid Estimate Revisions

Micron has an expected revenue and earnings growth rate of 91.4% and more than 100%, for the next year (ending August 2027). The Zacks Consensus Estimate for next year’s earnings has improved 3.4% over the last 60 days. 

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Sandisk Corp.

Sandisk — a leading flash and advanced memory technology innovator — is set to maintain its astonishing momentum. SNDK has benefited from the structural shift toward AI computing, which requires significantly more NAND flash storage per deployment compared with traditional workloads. 

AI training models and inference applications generate massive data volumes that demand high-performance enterprise solid-state drives, while edge devices need greater storage capacity to support on-device AI features. 

This creates a favorable demand environment where SNDK can command premium pricing for its advanced technology products while maintaining disciplined supply allocation. SNDK’s BiCS8 quad-level cell storage product continues to advance through qualification with two major hyperscalers. The extended joint venture agreement with Kioxia Corporation through December 2034 positions Sandisk favorably in the AI memory and storage space. 
SNDK currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Solid Estimate Revisions

Sandisk has an expected revenue and earnings growth rate of more than 100%, each for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 10.9% over the last 30 days.

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Seagate Technology Holdings plc

Zacks Rank #1 Seagate is benefiting from a shift in AI workloads from short-lived compute jobs to persistent data reuse. Inference, agentic applications, robotics and autonomous systems all create reasons to retain historical, video and sensor data. That supports a tiered storage model in which cost-efficient hard drives remain central.

STX’s AI workloads expand the need for persistent data. AI systems need context. In agentic applications, key-value cache data can be retained and reused across interactions, reducing the need to recompute information already generated. That dynamic is showing up in demand. 

Seagate’s Mozaic 4 platform can support drives of up to 44 terabytes and is ramping with the two largest global cloud service providers. Mozaic 5, a five-plus-terabyte-per-disk platform, is scheduled for qualification shipments in late calendar 2027. STX has also pointed to a 50-terabyte drive as the next step after Mozaic 4.

Solid Estimate Revisions

Seagate has an expected revenue and earnings growth rate of 55.2% and more than 100%, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 29.7% over the last 30 days. 

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Western Digital Corp.

Zacks Rank #2 Western Digital has been witnessing strong execution amid intensified cloud and AI demand. WDC saw strong data center demand and increased adoption of high-capacity hard disk drives. This reflects its ability to scale reliable, high-capacity storage solutions to meet the needs of the AI-driven data economy.

As AI and cloud adoption accelerate, demand for higher-density storage continues to rise. WDC is meeting this demand through close collaboration with hyperscalers, delivering reliable, high-capacity drives at scale with strong performance and total cost of ownership.

Solid Estimate Revisions

Western Digital has an expected revenue and earnings growth rate of 45.4% and 96%, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 8.8% over the last 30 days. 

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Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

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This article originally published on Zacks Investment Research (zacks.com).

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