Seagate Technology Benefits from Western Digital's Positive Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2025
0mins
Should l Buy STX?
Source: NASDAQ.COM
Seagate Technology Holdings PLC (STX) saw a pre-market price increase of 5.01%, crossing above its 5-day SMA, reflecting positive market sentiment.
The recent Innovation Day held by Western Digital (WDC) has sparked interest in the data storage sector, with analysts raising Seagate's price target to $530, indicating optimism about its future earnings potential. This event has not only boosted confidence in Western Digital but has also positively impacted Seagate, as analysts expect strong growth in the HDD market, which is crucial for Seagate's performance.
The implications of this positive outlook for Seagate are significant, as it suggests a potential rebound in demand for hard disk drives, positioning the company favorably in a competitive market. Investors may view this as a strong signal for future growth, especially as the technology sector continues to evolve.
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Analyst Views on STX
Wall Street analysts forecast STX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for STX is 310.39 USD with a low forecast of 150.00 USD and a high forecast of 465.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
3 Hold
1 Sell
Moderate Buy
Current: 405.450
Low
150.00
Averages
310.39
High
465.00
Current: 405.450
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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- Revenue Growth Outlook: BNP Paribas analysts predict that Western Digital's order visibility supports a long-term revenue growth target of over 20% CAGR post-CY25, with expectations for EPS exceeding $20, indicating strong long-term growth potential.
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- Profitability Enhancement: Western Digital aims for over 50% gross margins, over 40% operating margins, and over 30% free cash flow margins, all exceeding previous expectations, demonstrating its competitive edge and enhanced profitability in the market.
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- Earnings Impact: Super Micro Computer forecasts Q3 net sales significantly above expectations, leading to a stock price increase of over 13%, while Advanced Micro Devices saw its stock drop more than 15% due to weak Q1 sales forecasts, reflecting a cautious market outlook on tech stocks.
- Mixed Economic Data: The January ADP employment change rose by 22,000, below the expected 45,000, while the ISM services index remained steady at 53.8, stronger than the anticipated decline to 53.5, highlighting the complexities of economic recovery that could influence future monetary policy.
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