The two companes are Western Digital and Seagate Technologies.
The two USA companies have basically cornered the world market for computer hard drives (Toshiba is the third largest manufacturer). AI and Data centres require massive amounts of cheap storage and only hard drives can provide this.
Massive AI and Data centres are springing up everywhere and their growth should continue for many years to lead to a high demand of spinning rust hard drives (unless solid state drives become much, much cheaper to buy and run).
Cheap, non-hybrid, large capacity server hard drives are used in data centres and will be in high demand for many years to come.
WD and Seagate are in the top 10 S&P 500 performers YTD.
WD has a forward PE of 12-20 and Seagate around 25 (and carries more debt).
Both companies have just reported their quarterly results and their next reports are due on Jan 20th and early Feb, 2026.
Of the two, WD looks the stronger horse to bet on, but I am investing in both companies! Better late than never!
More 'best' companies!
Let us look at more top performing S&P 500 companies over the last 6 months...
I hold some of these companies already, but it seems to me that a nice T212 Pie could be made up from most of these and it might do quite well!
Oct 2025 - the S&P 500 had highest trading volume ever!
Will this continue into November?
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