Seagate Technology Fell 25% in The Last Month But One Wall Street Analyst Says 140% Gains to Come

Seagate Technology reported strong demand for its hard drives, with CEO Dave Mosley stating that all additional production is already allocated. CFO Gianluca Romano noted a growing supply-demand gap. Revenue was $4.23B, up 61% YoY, with non-GAAP gross margin at 57.8%. The stock rose 3.67% during the day but fell 5.52% after hours. Supply contracts extend through 2030, and pricing power is lifting margins. The company expects revenue of $4.8B and non-GAAP EPS of $9.20 for the December quarter.

UBS reduced its price target for Seagate (STX) to $750 from $780, citing concerns about Exabyte shipments and valuation. The firm expects pricing trends to continue but believes multiples for hard disk drive stocks will compress. Seagate's Q1 earnings beat expectations, with revenue of $4.2B and EPS of $7.68. Other analysts have mixed views, with some raising targets to $1,350. STX is up 201% over the past year.

SK Hynix (SKHY) reported a 632% increase in operating profit and a $45B shareholder return plan, causing its shares to rise 8% premarket. Micron (MU), SanDisk (SNDK), and Western Digital (WDC) also saw gains. SKHY's revenue and operating profit set records, but net profit missed estimates. The company's pledge follows shareholder demands for better payouts.

Evercore ISI maintained an Outperform rating and $1,000 price target for Seagate (STX) after its Q1 results beat estimates. Revenue was $4.23B, EPS $7.68, with pricing up 30% YoY. Guidance for Q2 is $4.8B revenue and $9.20 EPS, above consensus. STX shares rose 201% in the past year, trading at $667.85. Gross margins expanded to 57.8%. Baird raised its price target to $1,350, citing strong storage growth outlook.

Baird raised its price target for Seagate (STX) to $1,350 from $1,080, citing strong storage growth outlook. The stock has surged 201% over the past year, trading at $667.85. Baird projects over 25% exabyte growth for fiscal 2027 and notes continued gross margin gains. Seagate reported Q1 earnings of $7.68 per share on $4.2B revenue, beating estimates, but stock declined in after-hours trading.

Western Digital (WDC) stock fell 3.0% post-earnings but rebounded 7.5% by October 27, 2026. The company reported a 55.5% revenue increase in fiscal Q1 2027, with prices rising 28% YoY, outpacing a 22% increase in storage shipped. Management forecasts 69% sales growth in fiscal Q2 2027 and expects gross margins to reach 60-61%. Exabyte growth is below target but expected to accelerate with new products.