Western Digital among 3 AI infrastructure picks as bond yields spike

The article draws a direct line between AI infrastructure spending and bond markets, noting that long-term yields are at levels last seen in the mid-2000s. That combination, heavy spending meeting higher interest rates, is draining cheap capital from speculation and steering attention toward companies that convert AI demand into revenue rather than promises.

Against that backdrop, the piece highlights Western Digital and Super Micro Computer as examples from an AI infrastructure screener. Western Digital supplies high-capacity hard disk drives and data center storage platforms for cloud and hyperscale customers, generating around US$12.9b from HDDs with a market cap of US$164.7b. Super Micro builds liquid- and air-cooled AI servers and storage, generating about US$39.1b from high-performance server solutions, with roughly US$27.7b from the United States.

The open question flagged for Western Digital is supply discipline. The article frames the whole thesis as resting on the storage duopoly holding the line on capacity, warning that if either player or a cash-rich new entrant builds new plants, the shortage could become a glut, as has happened before in memory and storage. For readers watching this space, that supply decision is the variable likely to shape AI-era margins and pricing power.