Seagate Expertise Holdings (NASDAQ:STX) is without doubt one of the finest performing S&P 500 shares in 2025. On December 17, Morgan Stanley analyst Erik Woodring raised the agency’s worth goal on Seagate to $337 from $270 with an Chubby ranking on the shares. This choice was made because the agency’s 2026 IT {Hardware} technique prioritized ‘cloud capex winners’ and product-cycle leaders, whereas flagging dangers for {hardware} OEMs. As a result of issues over rising reminiscence prices, the agency suggests being Underweight on memory-heavy names.
Moreover, on December 2, Citi raised the agency’s worth goal on Seagate to $320 from $275 with a Purchase ranking on the shares. The agency made this choice based mostly on a supply-and-demand steadiness within the reminiscence sector, characterised by restricted manufacturing and constant pricing energy. Citi highlighted that demand visibility now extends via 2027, largely fueled by the expansion of unstructured knowledge generated by AI instruments.
In FQ1 2026, Seagate Expertise achieved income of $2.63 billion, which represented a 21.3% year-over-year enhance and beat analyst estimates by 3%. Non-GAAP EPS reached $2.61, which was 8.8% increased than consensus estimates. Regardless of the cyclical nature of the semiconductor business, Seagate’s annualized income progress of 18.5% over the past two years signifies a robust demand acceleration relative to its five-year historic development. Looking forward to This autumn, Seagate tasks income at a midpoint of $2.7 and an adjusted EPS of ~$2.75, each of which exceeded Wall Road’s forecasts.
Seagate Expertise Holdings (NASDAQ:STX) offers knowledge storage know-how and infrastructure options in Singapore, the US, the Netherlands, and internationally.
Whereas we acknowledge the potential of STX as an funding, we imagine sure AI shares provide larger upside potential and carry much less draw back threat. If you happen to’re on the lookout for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
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