Western Digital vs. Seagate: Best AI Stock to Buy After Earnings

Seagate (STX) is the better post-earnings buy over Western Digital (WDC), according to a Zacks Investment Research comparison of the two AI-storage names after strong Q1 2027 results.

Both companies posted big top-line growth on AI infrastructure demand. STX grew revenue 61%, while WDC grew 55%. The six-point gap in growth rate is the first edge for STX.

Valuation and returns widen the case. STX carries a return on equity of 386.9%, versus 57.9% for WDC. STX also trades at a forward P/E of 19.01, slightly below WDC's 19.37. Zacks concludes that STX offers the stronger combination of growth, profitability, and price.

Interpretation: the forward P/E gap is only 0.36 turns, so valuation alone barely separates the two. The ROE gap is the real differentiator, though a figure that high may partly reflect a small equity base rather than purely superior operations. That reading is our inference, not a claim from the source.