Seagate Stock Surges on Strong Earnings and AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 25 2024
0mins
Should l Buy STX?
Source: Barron's
Seagate Technology Holdings PLC's stock has soared 3.01% and reached a 52-week high, reflecting strong investor confidence.
The surge is attributed to Seagate's fiscal Q3 2026 revenue, which increased by 44% year-over-year to $3.11 billion, and earnings that skyrocketed by 116%. The company has secured long-term supply agreements with major cloud and hyperscale customers, ensuring sustained revenue growth amid rising demand for high-capacity storage products, particularly in the AI infrastructure market. This robust performance highlights Seagate's competitive edge and growth potential in a rapidly evolving industry.
The implications of this performance are significant, as Seagate expects adjusted earnings of $5 per share this quarter, nearly double last year's figure. With a PEG ratio of 0.5, the stock indicates a potential 77% upside in the coming years, attracting continued investor interest and positioning the company favorably in the market.
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Analyst Views on STX
Wall Street analysts forecast STX stock price to fall
18 Analyst Rating
14 Buy
3 Hold
1 Sell
Moderate Buy
Current: 782.640
Low
150.00
Averages
310.39
High
465.00
Current: 782.640
Low
150.00
Averages
310.39
High
465.00
About STX
Seagate Technology Holdings plc provides mass-data storage infrastructure solution. The Company’s principal products are hard disk drives, commonly referred to as disk drives, hard drives (HDDs). In addition to HDDs, the Company produces a range of data storage products, including solid state drives (SSDs), solid state hybrid drives, storage subsystems, as well as a scalable edge-to-cloud mass data platform. Its HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves use cases, such as hyperscale data centers and public clouds, as well as emerging use cases. The Company’s HDD and SSD product portfolio includes Serial Advanced Technology Attachment, Serial Attached SCSI and Non-Volatile Memory Express based designs to support a variety of mass capacity and legacy applications. Its systems portfolio includes storage subsystems for enterprises, cloud service providers, scale-out storage servers and original equipment manufacturers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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