Forget Nvidia. This AI Stock Is Selling the Storage Behind the Boom
Seagate Technology (STX) shares have surged 202% YTD and 385% over the past year, driven by AI-related storage demand. CEO Dave Mosley highlights long-term demand for mass-capacity storage. Fiscal 2026 revenue grew 34% to $12.2B, with Q4 EPS beating estimates. Analysts see 36% upside to a $1,125 target, citing strong hyperscaler demand, HAMR tech, and margin expansion.
How this was made
The 30-second read
Why it matters
The guidance could trigger a re‑rating by analysts and attract momentum traders targeting AI‑related hardware stocks.
Market read
Seagate's FY2027 outlook supports a bullish case for the stock and underscores the broader AI storage demand theme.
What to watch
Potential supply‑chain constraints for HAMR drives and concentration risk with a few large cloud customers.
Background
Seagate has posted strong FY2026 results and is now projecting robust FY2027 growth, positioning itself as a key storage supplier for AI workloads.
Ticker impact
Seagate disclosed FY2027 guidance forecasting non‑GAAP EPS of $7.30 and revenue of $4.1 bn, indicating strong growth and supporting a potential price target above $1,000.
Potential upside of 15‑20% if guidance is fully priced in.
Guidance is fresh, includes concrete EPS and revenue numbers, and follows a streak of earnings beats, making the outlook credible.
Market effects
Highlights growing demand for high‑capacity storage in AI data centers, benefiting the broader storage and semiconductor sectors.
Strengthens the outlook for U.S. hardware manufacturers serving hyperscalers.
Reinforces the narrative of AI‑driven infrastructure spending worldwide.
Counterpoint
If hyperscaler demand softens or tariff risks materialize, the upside could be limited despite strong guidance.
Key entities
- CompanySeagate Technology
U.S. data‑storage manufacturer (NASDAQ:STX).
- ExecutiveDave Mosley
CEO of Seagate who provided the FY2027 guidance.
