Seagate Technology Holdings PLC (NASDAQ:STX) is expected to report robust results for its second fiscal quarter, driven by continued strength in data center demand and seasonal improvements in its consumer and VIA segments, according to Bank of America. In a note to clients, the bank reiterated its Buy rating on Seagate shares and raised its price target to $400 from $320, citing stronger visibility into revenue and margin growth.
STX rolls out 32TB HDDs across Exos, SkyHawk AI and IronWolf Pro, targeting edge-to-cloud AI video analytics and rising data demands.
STX's data center drives 80% of revenue, aids Q1 FY26 growth as cloud demand lifts exabytes, margins and outlook.
STX has surged nearly 242% in a year as AI-driven data growth, tight HDD supply and rising HAMR adoption fuel demand for high-capacity drives.
While everyone couldn't stop talking about flashy AI stocks like Nvidia and Alphabet in 2025, lesser known data storage stocks saw massive gains.
Seagate sells HDDs; AI data centers now drive demand, pushing shares up 219% YoY. I think the rally continues as storage needs compound into 2026 further. HAMR technology enables 30%+ capacity gains per unit, supporting margin expansion and a projected 44% upside to ~$398/share. STX's exabyte growth is driven by areal density, not unit capacity, reducing cyclicality and supporting consensus-beating sales and margin trends.
WDC looks more balanced than STX as AI and cloud fuel storage demand, with lower valuation, rising margins and multi-year HDD contracts despite risks.
Does Seagate (STX) have what it takes to be a top stock pick for momentum investors? Let's find out.
WDC, TDC and STX ride on cloud and AI storage demand as data center momentum sets the stage for 2026.
STX shares are up 118% in six months as AI-driven data center demand, new Exos systems, and HAMR advances power results and capital returns.
STX boosts shareholder returns with a 3% dividend hike, resumed buybacks and a commitment to return at least 75% of free cash flow.
Seagate (STX) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.