Sandisk vs. Seagate Technology: What Do Their Revenue Trends Tell Investors About Their Roles in the Artificial Intelligence Ecosystem?
Key Points
Sandisk currently holds a clearly stronger revenue position, having recently overtaken Seagate Technology in total quarterly sales after trailing it in earlier periods.
Over roughly the last eight quarters, Sandisk saw flat quarter-over-quarter results before accelerating sharply, while Seagate Technology maintained a highly consistent, gradual upward trend.
Investors should watch whether the rapidly widening revenue gap between the two companies continues to expand or begins to narrow in upcoming quarters.
Sandisk: Rapidly Accelerating Revenue
Sandisk (NASDAQ:SNDK) primarily designs, manufactures, and supplies a diverse range of computer data storage solutions, including embedded memory and removable cards, utilizing advanced flash technology.
It recently began production for its new 10th-generation flash memory technology alongside Kioxia in Japan, and it reported a 61% net income margin for the quarter ended April 3, 2026.
Seagate Technology: Steady Revenue Progress
Seagate Technology (NASDAQ:STX) operates as a global provider of mass capacity data storage technology, selling hard disk drives and solid-state drives primarily to original equipment manufacturers and distributors.
It recently reached a preliminary $175 million settlement to resolve a shareholder class-action lawsuit, and it posted a 24% net income margin for the quarter ended April 3, 2026.
Why Revenue Matters for Retail Investors
Revenue serves as a critical baseline measure of a company's customer demand and overall sales volume over a given period. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory.
Quarterly Revenue for Sandisk and Seagate Technology
| Quarter (Period End) | Sandisk Revenue | Seagate Technology Revenue |
|---|---|---|
| Q2 2024 | $1.8 billion (period ended June 2024) | $1.9 billion (period ended June 2024) |
| Q3 2024 | $1.9 billion (period ended Sept. 2024) | $2.2 billion (period ended Sept. 2024) |
| Q4 2024 (Dec. 2024) | $1.9 billion | $2.3 billion |
| Q1 2025 (March 2025) | $1.7 billion | $2.2 billion |
| Q2 2025 (June 2025) | $1.9 billion | $2.4 billion |
| Q4 2025 (Oct. 2025) | $2.3 billion | $2.6 billion |
| Q1 2026 (Jan. 2026) | $3.0 billion | $2.8 billion |
| Q2 2026 (April 2026) | $6.0 billion | $3.1 billion |
Data source: Company filings. Data as of July 16, 2026.
Foolish Take
Examining the revenue trends for Sandisk and Seagate Technology reveals key insights. The former trailed in sales until 2026, when Sandisk not only overtook Seagate, it handily blew past its data storage rival.
This sales surge was due to Sandisk’s focus on NAND flash memory while Seagate sells the traditional hard disk drive (HDD). NAND flash delivers extreme speed when it comes to processing data, far faster and more reliably than HDDs. The companies building artificial intelligence systems seek speed because of the massive troves of data AI must churn through to deliver its output.
As AI has rapidly expanded, necessitating the construction of new data centers, the demand for NAND flash has skyrocketed, as demonstrated by Sandisk’s sales of $6 billion in the most recent quarter. The company forecasted revenue of $7.8 billion to $8.3 billion in the next quarter. That’s more than the $7.4 billion Sandisk made in all of 2025.
Seagate’s revenue is steadily rising as AI demand contributed to its growth, but customers are not flocking to its products to the same degree as Sandisk. AI can continue to help Seagate’s sales grow, but the company is unlikely to see it take back the revenue lead from Sandisk any time soon.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.