I keep buying Seagate because every time I look at what it costs a hyperscaler to store a petabyte, the math ends at the same place, and my brokerage account ends at the same button.
Micron's AI-fueled rally has cooled, but Seagate and WDC are riding on strong storage demand, margin expansion and upbeat outlook that may power further gains.
Seagate Technology (STX) shares rose on Friday after Wells Fargo upgraded the data storage company to an Overweight rating. The analyst cited growing confidence in its long-term earnings potential and sustained demand for hard-disk drives (HDDs) driven by artificial intelligence infrastructure.
STX sees record cloud commitments and rising AI infrastructure spending fueling demand for its HAMR-based storage, with growth targets climbing higher.
The AI boom has reshaped the technology landscape, creating massive demand not only for GPUs and cloud infrastructure but also for data storage solutions. As enterprises generate and retain unprecedented amounts of AI training and inference data, storage has become a critical piece of the AI value chain.
Seagate (STX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Seagate (STX) could produce exceptional returns because of its solid growth attributes.
Seagate (STX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
STX's data center business is surging as cloud demand, Mozaic drive adoption and long-term supply agreements fuel revenue growth through fiscal 2027.
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