What Happened?
Shares of data storage manufacturer Seagate (NASDAQ: STX) jumped 13.9% in the afternoon session after several analysts raised their price targets for the company, reflecting strong investor confidence in the data storage sector.
Notably, Morgan Stanley increased its price target for Seagate to $337 from $270 and reaffirmed its Overweight rating. Other firms also expressed bullish sentiment, with Cantor Fitzgerald setting a new target of $400. Analysts pointed to strong demand for hard disk drives (HDD) and an improved supply-and-demand balance in the industry as key reasons for their optimism. The positive outlook was part of a wider rally for data-storage firms, which have seen gains driven by the growing hardware needs of the artificial intelligence sector. Peers like Western Digital also experienced significant stock increases, underscoring the sector-wide momentum.
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What Is The Market Telling Us
Seagate Technology’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for Seagate Technology and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 2.9% on the news that analysts at Morgan Stanley and Benchmark raised their price targets on the stock, citing strong demand.
The optimism was linked to high demand for the company's Hard Disk Drives (HDDs), fueled by growth in AI storage and cloud computing. Seagate's technological lead in Heat-Assisted Magnetic Recording (HAMR) was also highlighted. The company's performance metrics supported the positive view, as it reported a 21% year-over-year revenue growth at the start of its fiscal year 2026 and achieved record gross margins. Its operating efficiency also showed improvement over the previous five years. A broader market lift from unexpectedly cool inflation data may have also contributed to the positive sentiment.
Seagate Technology is up 14.7% since the beginning of the year, and at $329.95 per share, has set a new 52-week high. Investors who bought $1,000 worth of Seagate Technology’s shares 5 years ago would now be looking at an investment worth $5,511.
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