key points

• Increasing demand for data center storage has supercharged the growth of seaget technology in recent quarters, causing a tremendous reverse for stock.

• Segate is currently trading at a wider market discount, and it can pave the way for attractive returns over the next several years.

Storage solution provider Seagate technology (Nasdaq: STX) In 2025, an outstanding rally has been recorded on the stock market, which is growing an incredible 73% year till date and beats. Nasdac Composite 7% return of the index by a large margin.

This impressive performance can be attributed to a strong increase in demand for storage in data centers Artificial intelligence Foundation. Let us dig a digging of how AI is promoting the development of seagate and see how it can pave the way for more reverse in this technology stock.

Now to invest $ 1,000? Our analyst team only revealed what they believe 10 best stock To buy now. learn more “

Image Source: Getty Image.

Seagate technology is growing at an incredible speed, and it can maintain its speed

In the first nine months of its financial year 2025, the revenue of seagate technology increased by about 43% to $ 6.65 billion year after year. Even better, company Non gaap (Adjusted) Income from operation has jumped more than four times during this period, thanks to high margin.

The management has credited this magnificent increase for healthy demand for large -scale capacity storage in the cloud, which has created a tight supply environment and increased prices. Management commented on the company’s AprilEarning callDemand for increasing storage “Cloud Capex aligns with the investment cycle and the construction-out-out of the infrastructure of the data center to support AI changes.”

In particular, 90% of storage in mass data centers is done with hard drives due to their cost efficiency and scalability. With the requirement of storage in data centers between 2024 and 2028, Seagate estimates that this data center can increase the annual revenue for the storage market by $ 23 billion by 2028, which was more than $ 13 billion last year.

Given the 40% of the seagate global storage market, the maximum benefit of this development opportunity is in a solid position. Not surprisingly, Seaet’s approach was an impressive for the recently concluded financial fourth quarter. The company directed for a revenue of $ 2.4 billion at the middle point of its border, as well as $ 2.40 per share in earnings.

The top-row guidance is good for 27% year-on-year growth, while the income is more than double the reading of $ 1.05 per share of the pre-year period.

A solid jump in the company’s earnings indicates more profit

For the entire financial year, seagate revenue can increase by 38%, while its adjusted income will exceed 6 times $ 7.91 per share. Importantly, the company must be able to maintain this speed, thanks to the tailwinds discussed above, and it determines the platform for strong returns.

Data by Ycharts,

Increased potential income combined with incredibly attractive assessment of seagate purchases a no-grainer. It is now trading only 21 times earning and 16 times ahead of earning estimates. Nasdaq 100 Meanwhile, the average forward earnings of the index are several 29, which means that the stock trades at a significant discount for the technical field.

Investors are looking for rapid growing AI Stock It is also appropriate that it would be good to buy a seagate before flying high.

Should you currently invest $ 1,000 in Seagate Technology PLC?

Before purchasing stock at Seagate Technology PLC, consider this:

Micker Flower Stock Advisor The analyst team identified what they believe 10 best stock For investors now to buy … and seagate technology PLC was not one of them. Cutting 10 stocks may produce demons returns in the coming years.

When to consider Netflix This list was made on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation, You will have $ 699,558, Or when Nvidia This list was made on 15 April 2005 … If you have invested $ 1,000 at the time of our recommendation, You will have $ 976,677,