STX
The stock’s not just hot — it’s wearing oven mitts
Seagate is having one of those stock-market days where everything seems to line up: strong earnings, a fat AI demand story, and analysts racing to lift their price targets before the confetti hits the floor.
The big headline? Rosenblatt kept its Buy rating and doubled its price target to $1,000 from $500. That’s not a typo. BofA Securities also stayed bullish and lifted its target to $840 from $700. When two firms start bumping numbers like they’re trying to win a game of corporate hopscotch, traders notice.
Why everyone suddenly loves hard drives again
This isn’t just some old-school storage company getting a sympathy bounce. The bull case is that AI is eating data center capacity for breakfast, and Seagate happens to sell the gear that stores all that digital sludge.
A few details that caught analysts’ attention:
- Revenue jumped 44.1% year over year in the fiscal third quarter
- Data center revenue climbed 55% and now makes up the bulk of the business
- Nearline drives are basically spoken for through 2027, which is Wall Street code for “supply is tight and pricing power is real”
- The company’s HAMR tech is supposed to help with cost, capacity, and margins — the holy trinity
Why investors should care
The stock was up more than 11% and hit a new all-time high, which tells you the market isn’t treating this like a one-quarter fluke. If Seagate keeps turning AI demand into actual cash flow, the story shifts from “cheap cyclical name” to “wait, this might be a compounding machine.”
Big picture: Wall Street usually doesn’t nearly double price targets unless it thinks the story has changed. For Seagate, the new narrative is simple — storage is no longer boring, it’s infrastructure for the AI boom.