AI is accelerating data-center capital spending
The combination of strong all-flash growth and accelerating capital spending indicates that AI-related infrastructure investment is broadening across storage architectures. This supports flash and storage suppliers, while the quote does not establish a specific read-through for any single vendor’s market share.
All-flash performed exceptionally strongly in Q1, right? It was up 47% year-on-year. So when we look at the overall year, all-flash still blows out our prior expectations. Hybrid flash, when we had planned the year, we were cautious about customers spending on non-mission critical workloads. That is typically what they do, right? When you see price increases, customers pull back on capital equipment spending. We are seeing broad-based acceleration in capital spending across the board, and we are which is a sign of the AI super cycle.
Who it touches
- NTAPbullish
All-flash revenue grew 47% year over year, while management observed broad-based acceleration in capital spending.
- SNDKbullish
Stronger all-flash deployments support demand for flash-based storage components.
- WDCbullish
Broad-based AI and data-center capital spending is a positive business read-through for storage-device suppliers.
- STXbullish
Accelerating capital spending across storage workloads supports continued data-center storage investment.
About this signal
- Company
- NetApp, Inc.
- Category
- capital spending
- Call
- Q1 FY2027