Google Opens Free AI Video Generation, Boosting Storage Demand for Western Digital and Seagate

Insider Monkey··US·Read original
3▲3 ▼0Impact / 5
Summary · why it matters

Alphabet is removing the cost barrier to Google Vids, letting anyone with a Google account use its AI video generator for free through the Gemini Omni 1.1 Flash model. Every video created, stored, and delivered adds to the growing volume of data that Western Digital and Seagate are positioned to handle, and all AI-generated videos carry a SynthID watermark. Western Digital's cloud revenue represented 89% of its latest quarter, with total exabytes shipped up 22% year-over-year on nearline products, and its CEO says the company is sold out for calendar year 2026; Seagate has nearly all nearline capacity committed into calendar 2028 and targets long-term revenue growth of at least 20%. Investors have already driven Western Digital up roughly 330% and Seagate about 305% over the past year, well ahead of the industry's 45% revenue growth, and Google trades at a forward P/E of 21.8x versus the S&P 500's 19.2x, with consensus projecting about 9.3% earnings growth in 2026 and roughly 27.6% in 2027. Hedge fund holdings in Google rose from 265 at the end of Q1 2026 to 275 at the end of Q2 2026.

Impact on assets 3

Cloud & Digital Infrastructure▲ · 2 stocks
Seagate Technology PLC
STX
▲ PositiveDemandrelevance

Free AI video generation adds to the growing volume of data stored and delivered, and Seagate has nearly all nearline capacity committed into calendar 2028.

Western Digital Corporation
WDC
▲ PositiveDemandrelevance

Rising AI-generated video volumes boost storage demand, with Western Digital's cloud revenue at 89% of its latest quarter and sold out for calendar 2026.

Artificial Intelligence▲ · 1 stocks
Alphabet Inc Class C
GOOG
▲ PositiveDemandrelevance

Alphabet removes the cost barrier to Google Vids, opening free AI video generation to anyone with a Google account, which should drive adoption of its AI video product.

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