US stock storage sector shows strong performance at the start of 2026

Golden Ten Data reported on January 8 that storage and mass storage device companies performed exceptionally well last year, becoming the best-performing group in the S&P 500 index. At the beginning of 2026, the storage sector led by SanDisk, Western Digital, Seagate Technology, and Micron Technology continues to show strength. SanDisk rose 16% on the first trading day of this year, surged 28% on Tuesday, and gained another 1.1% on Wednesday, with a cumulative increase of 49%. Western Digital, Seagate, and Micron all recorded double-digit percentage gains at the start, but pulled back on Wednesday. Peter Andersen, Chief Investment Officer at Andersen Capital Management, stated that the recent rally was driven by AI data center construction, but the market may be underestimating cyclical risks and price pressures. The 14-day Relative Strength Index (RSI) for both SanDisk and Micron exceeded 70, which technical analysts believe may be an overbought signal.